The investment boom has come from the creation of fixed assets and this phenomenon has been most pronounced in the private corporate sector, although fixed investment in the public sector also picked up in this period. According to an estimate by the Prime Minister’s Economic Advisory Council, the investment rate (provisional) crossed 35 per cent in 2006-07 from 33.8 per cent in 2005-06.
The increasing number of innovative companies operating in financial areas and the rapid pace of developments in this areas, are already reaching into areas of activity that until recently were the exclusive domain of the traditional financial entities, and are undermining their status.