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The Spend Game

07-Feb-2022 by Arvind Virmani

Given the slow recovery of private investment due to Covid uncertaintiea, higher government investment is clearly needed to raise aggregate investment, crown in private investment, increase aggregate demaind, generate jobs and raise the income of unskilled.

Investment in traditional industries will happen when capacity utilisation in a specific industry reaches 75-80%. In the digital economy, so-called expenditure ‘burn’ has the same effect as physical investment in traditional industry. It builds intellectual capital. It's already happening as shown by number of unicorns.

Source: Page 5, The Economic Times, New Delhi, Sunday 6 February 2022