Congress Party-Politics of Personal Loyalty

from 0.2 per cent of GDP to 2 per cent, the rate of domestic capital formation was sustained at 24.2 per cent in 1980-81 compared to 24.6 per cent in 1978-79. However, stock accumulation at current prices shot up from Rs 3,744 crore (3.8 per cent of GDP) to Rs 5,664 crore (4.5 per cent of GDP) between the two years. Faster rise in prices of investment goods than in those of general goods and services has also eroded investible resources. As a result, the rate of gross capital formation at constant prices was 21.9 per cent in 1980-81 compared to 22,3 per cent in 1978-79, showing a larger fall than in gross capital formation at current prices.