Robust economic growth requires a complementation between the public and private investment. Examine the statement with reference to falling private investments in the Indian economy.

Why do we need PPP?

(1) This will lead to combination of good features of both public & private sector (2) Improve Innovation. (3) Enhance R&D (Research & Development) (4) Decrease fiscal burden on the government (5) Diversify risk by sharing it between private & public sector (6) Better quality of services (7) Timely delivery of projects (8) Increase government focus on social development related projects (9) According to the World Bank for every ₹1 invested by the private sector the return is supposed to be ₹3.5-4. (10) Thus it can not only boost economic growth rather promote social development as well. (11) However, decline in private investment is observed because of:- → High regulation → Higher compliance burden on the private sector → Lack of Ease of doing business → Increased government intervention