India saw sharp fall in investment rate in 2008/09, but the same reversed in 2009/10. The estimated investment rate in 2009/10 is 36.2% (34.9% in 2008/09). It is expected to pick up with improvement in domestic conditions.
The estimated savings rate is 34.0% in 2009/10 (32.5% in 2008/09), which is expected to improve in the subsequent years due to fiscal consolidation by government.
India received capital inflows of $48.5 billion in 2009/10 as compared to $8.7 billion in 2008/09. The Net accretion to reserves were $17.6 billion ( - $18.9 billion in 2008/09).