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Macro Economics
Notes He stressed on the importance of due diligence for investors committing their resources
to non-listed assets.
"Overseas Indians have expressed strong interest in the growing businesses in India,
citing the higher rate of returns on their investment and the country's double-digit economic
growth," he said.
"The investment flow into India is picking up momentum, with more and more high
net-worth individuals of India-origin taking up stakes in SMEs, which may offer a
double-digit rate of return on investments," he added.
"Global investors can no longer ignore the investment opportunities in India and taking
this cue, we see an increasing number of NRIs in that race for participating in Indian
prosperity, as the main Western, American and Asian markets have matured," he said.
Source: http://www.oifc.in/Article/'NRI-investment-in-India-increasing'
6.2.6 Process Innovations
In this dynamic world, there is a growing competition and technological progress or industrial
innovation. The use of such innovations requires investment.
6.2.7 Product Innovations
The production of an old product cheap as well as development of new products requires new
investment in plant and equipment.
6.2.8 The Level of Income
High levels of income are often associated with high levels of investment. High income may be
national income, high profit, etc.
Task You or Your parents must have invested in shares, bonds or mutual funds at some
point of time. What were the factors that influenced your investment decision at that time?
Self Assessment
Fill in the Blanks
6. Investment and rate of interest are ...................... related.
7. Lower the interest rate, more will be the investment by firms except in the case of
......................
8. ...................... gives the monetary return on each extra rupee's worth of capital added.
9. The two most important determinants of investment are MEC and ...................... .
10. ...................... or ploughing back of profit is necessary for expansion and diversification of
firms.
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