The investment-to-GDP ratio declined to about 32 percent
in 2009/10–2010/11, and then fell further to about
30 percent in 2011/12. Moderation in investment
activity was accompanied by a gradual decline in the
value of newly-announced investment projects, from an
average of 10 percent of GDP in 2006/07 to just
1 percent in 2012/13. Furthermore, the share of stalled
and shelved investments jumped to over 2½ percent of
GDP in mid-2011, after moderating slightly following a
spike in early-2009. As the share of stalled projects
remains elevated, and the pipeline of new projects is
exceptionally thin, concerns about India’s growth
outlook remain.