01815cas a2200253 a 4500 AALejournalIMF014303 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475531183 1018-5941 BD-DhAAL BD-DhAAL Anand, Rahul. Disentangling India's Investment Slowdown / Rahul Anand, Volodymyr Tulin. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (18 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal interest rates, real interest rates account for only one quarter of the explained investment downturn. In addition, standard macro-financial variables do not fully explain the recent investment slump. Using a new measure of economic policy uncertainty, the results suggest that heightened uncertainty and deteriorating business confidence have played a key role in the recent investment slowdown. Mode of access: Internet Tulin, Volodymyr. IMF Working Papers; Working Paper ; No. 2014/047 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/047/001.2014.issue-047-en.xml IMF e-Library