India's aspiration to be a developed nation by 2047 hinges significantly on capital investment. In light of this, discuss the potential of capital investment in achieving this vision. What are the challenges India faces in this regard?

Capital investment - growth multiplier effect Potential of Capital investment: (1) Infrastructure creation and base of doing business. (2) Reduced logistic cost (bringing ratio below 1/l) Challenges faced: (1) High fiscal deficit, (2) High non-developmental expenditure (pension, subsidies, welfare etc.) (3) PPP issues - dispute resolution, unsustainable infrastructure (eg bridge collapse, etc.) (4) Significant delay & absence of raw materials (eg electronics manufacturing, semiconductor etc.) Way ahead: (1) Standard TPP practices (Teller Committee recommend) (2) Reduce logistic cost (logistic policy) (3) Boost to domestic growth. Capital investment is key to achieve vision of developed nation by 2047.