Investment Models
📊 High-Yield Data & Statistical Fact Sheet
| Investment GDP Identity | - $$GDP = C + G + I + NX$$ ($I = \text{Gross Investment / Capital Formation}$). |
| Prohibited FDI Sectors | - Lottery, Gambling/Casinos, Chit Funds, Nidhi Companies, TDR trading, Tobacco Mfg, Atomic Energy, Railway Operations. |
| ICOR Capital Efficiency | - $$\text{ICOR} = \frac{\text{Annual Capital Investment}}{\text{Annual Increase in GDP}}$$ UPSC Rule: Lower ICOR is preferred (denotes less capital required per unit of growth). |
| Viability Gap Funding (VGF) | - Central grant of up to 20% of project cost for commercially unviable but socially essential infrastructure. |
1. THE SAVINGS-INVESTMENT LINK & EFFICIENCY METRICS
| Keynesian Investment Multiplier | - $$\text{Multiplier} = \frac{1}{1 - \text{MPC}} = \frac{1}{\text{MPS}}$$ |
| FDI Definition | - Long-term, non-debt capital ($\ge 10\%$ equity in listed company or any equity in unlisted firm). |
| FPI Definition | - Portfolio investment ($< 10\%$ equity in listed firm). |
2. THE PPP ARCHITECTURE: EPC, BOT & HAM MODELS
| EPC Model | - 100% government-funded; private contractor assumes design and construction risk, handing asset back to Govt upon completion. |
| BOT-Toll Model | - Private developer builds, operates, and recovers investment via toll collection (traffic risk borne by developer). |
| BOT-Annuity Model | - Developer builds, Govt pays fixed periodic annuity payments (traffic risk borne by Govt). |
| HAM Construction Funding | - 40% funded by Govt during construction, 60% by private developer. |
| HAM Revenue Model | - Govt pays developer fixed annuity payments with interest post-completion (mitigates revenue risk). |