The recent slowdown in the growth of business sales would be expected, all else equal, to have a damping influence on capital spending, and in fact business confidence has moved down since the start of the year. However, order books for capital goods such as industrial machinery and other types of heavy equipment appear to be full and should support nearterm investment gains.
Gadgil is well known not only as an economist but also as a great educationist and a statesman, having served as a member of Rajya Sabha. We all know of the great contribution he made towards the distribution of plan transfers amongst the Indian states through the famous “Gadgil Formula”.