Difference between investment rate in nominal and real terms widening

The difference between the real and nominal GFCF rates was five percentage points. The difference stood at over 5% in the previous two quarters of the current financial year

Indivjal Dhasmana | New Delhi
Last Updated at March 7, 2023 10:35 IST

The divergence between investment rate at constant prices and at current prices has been on an increase in recent times. For instance, gross fixed capital formation (GFCF) was 31.8 per cent of the gross domestic product (GDP) at constant prices, while it was way down at 26.8 per cent at current prices in the third quarter of the current financial year.

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