This study assesses the impact of public investment on the Indian economy and identifies the key components of public investment that have the most significant influence on economic growth. The findings reveal a positive and significant relationship between public investments and the GDP growth rate, indicating that public investments exert a more influential impact than private investments. Specifically, the study identifies construction and electricity, water, and gas supply as the primary sectors where public investment plays a crucial role in fostering economic growth. Furthermore, the research highlights a positive correlation between public investments and the productivity of private investments.
Ashish Arora (Thu,) studied this question.