The Hindu Editorial Summary : Why Have Private Investments Dropped?

GS-3 Mains

Short Notes or Revision Notes 

Question : Explain the significance of Gross Fixed Capital Formation (GFCF) as a measure of private investment in an economy?

Problem: Private investment in India (measured by private GFCF) has been falling since 2011.

What is GFCF?

  • Stands for Gross Fixed Capital Formation.
  • Represents the growth in fixed capital (buildings, machinery) in an economy.
  • A higher GFCF indicates a more vibrant private sector willing to invest.
  • Fixed capital is crucial for economic growth and improved living standards.

Why GFCF Matters:

  • More fixed capital allows workers to produce more goods and services.
  • This boosts economic output and improves living standards.
  • Developed economies have more fixed capital per capita than developing ones.

Trend in Private Investment in India:

  • Increased significantly after economic reforms in the late 1980s and early 1990s.
  • Pre-liberalization: Private investment remained around 10% of GDP.
  • Public investment rose steadily, surpassing private investment in the early 1980s.
  • Post-liberalization: Private investment took the lead but dropped after the 2008 crisis.
  • Reached a low of 19.6% of GDP in 2020-21.

Reasons for the Fall:

  • Low private consumption expenditure: Some economists believe weak consumer spending discourages businesses from investing due to lack of demand.
    • Historically, however, a rise in consumption hasn’t led to a rise in investment in India.
    • Lower consumption might even boost investment as saved money can be directed there.
  • Structural problems: Many economists point to unfavorable government policies and policy uncertainty.
    • Uncertainty discourages investment as businesses need stability for long-term projects.


  • Low private investment leads to slower economic growth.
  • Private investors are seen as better allocators of capital compared to the government.



The Hindu Editorial Summary :  Dynamic Duo: Enhanced Liver Function and Gut Health

GS-2 Mains : Health

Short Notes or Revision Notes 

Question : Critically analyze the role of hydration in supporting liver function and optimizing bile production. Discuss the significance of adequate hydration in eliminating toxins and maintaining liver health.

Context: World Liver Day – emphasizes supporting liver and gut health due to their symbiotic relationship.

The Unsung Heroes:

  • Liver: detoxifies, metabolizes, and stores nutrients.
  • Gut: orchestrates digestion and plays a vital role in the immune system.

Liver Function:

  • Performs crucial tasks for well-being:
    • Detoxification (harmful substances, toxins)
    • Synthesis of essential proteins
    • Storage of glycogen (energy)
    • Metabolism of fats, carbohydrates, and proteins (regulates blood sugar and cholesterol)
  • Can be impaired by excessive alcohol, poor diet, viral infections, and medications.
  • Liver diseases: fatty liver disease, hepatitis, cirrhosis.

The Gut: Gateway to Health

  • Hosts trillions of microorganisms (gut microbiota) that:
    • Break down food
    • Synthesize vitamins
    • Bolster the immune system
  • Disrupted by modern lifestyle (processed foods, antibiotics, stress):
    • Gastrointestinal disorders (IBS, IBD, leaky gut)

The Liver-Gut Axis:

  • Bidirectional communication system:
    • Liver produces bile (aids fat digestion)
    • Bile acids signal gut microbiota composition
    • Gut bacteria metabolites influence liver function and inflammation
    • Healthy gut microbiome strengthens gut barrier (prevents harmful substances from reaching liver)
    • Compromised gut barrier burdens the liver

Strategies for Optimization

  • Diet:
    • Fiber-rich foods (fruits, vegetables, whole grains, legumes): prebiotics for gut bacteria
      • Soluble fiber binds to bile acids (reduces cholesterol)
    • Probiotic-rich foods (yogurt, kefir, kimchi): introduce beneficial gut bacteria
    • Limit sugar and processed foods (harm gut microbiota, contribute to liver issues)
  • Hydration:supports liver function (eliminates toxins, optimizes bile production)
  • Stress Management:chronic stress harms gut health (permeability, microbiota)


Liver and gut are interconnected for overall health. Nurturing gut health (diet, stress management, probiotics) supports liver function and well-being.

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