How are public and private investment in India changing?
Prior to 1991, the main type of investment in India was public (by the government). Private investment was prevented in most industries, a licence was needed by private companies before they could start producing goods.
Following India opening its economy to private sector investment in 1991, some large TNCs from the USA and Europe outsourced IT and manufacturing to India. This is because India relaxed foreign investment rules, allowing foreign companies to own more land and properties.
The government has also encourages smalled Indian companies to invest in economic development through projects such as Startup India. Paperwork and taxes have been reduced to support investment.
To support further economic development the government has been increasing public investment by upgrading the rail network, improving broadband provision and building new roads.