accelerated subsequent years saw continued muted investment growth relative to the preceding decadethe slowdown it said has been attributed to a range of factors including excess capacity in manufacturing following the 2009 global recession policy uncertainty and reforms implemented by the reserve bank to address financial sector weaknesses particularly among stateowned banksstress in the financial sector came to the fore again a few years later and resulted in an abrupt slowdown in private fixed investment in fy 201920 the report saidcovid19 led to a 104 per cent contraction in fixed investment in india in fy 202021 but a robust recovery followed assisted by the governments investment drivethus in fy 202122 investment rebounded by 158 per cent making the shortfall from the prepandemic trend among the smallest in the southasia regionpublic investment in the 202223 budget is expected to expand by onethird and there is also an incentive program to boost private investment by boosting public investment during years of private sector weakness 201316 2020 the government played an important countercyclical role it saidthe report highlighted indias recent shift in focus of government spending toward infrastructure investment consolidating labour regulations privatising underperforming stateowned assets and modernising and integrating the logistics sectorgoods and services taxes implemented in india in 2017 for example doubled indias tax base in four years it saidin india the burden of regulatory compliance delays in utility connections difficulties in obtaining permits to start and operate a business high taxes and rigid labor markets raise the cost of doing business and discourage investmentadditionally in india investors cite restrictive labor laws as factors that limit employment opportunities for women and discourage the adoption of new technologies thereby reducing productivity in manufacturing it added