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One explanation identified by the study is that strong profitability from assets companies already own does not necessarily make a new investment equally attractive. Its analysis found evidence that the initial returns associated with fresh fixed-asset investment have weakened in
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India — PARTHA SINHA
One explanation identified by the study is that strong profitability from assets companies already own does not necessarily make a new investment equally attractive. Its analysis found evidence that the initial returns associated with fresh fixed-asset investment have weakened in the post-pandemic period, putting downward pressure on what the paper calls “marginal profitability”.
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Source: Times of India · PARTHA SINHA. Published 25 Aug 2026, 11:02 pm.
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