tion. This need not be a policy of standing still, if two considerations are kept in mind.
A cut in investment outlay can be turned to advantage if the emphasis is turned to output and costs. In most industries and even in agriculture, past investment has created enough capacity to generate much larger output and income than have fructified so far or are indicated in formal terms. There is considerable scope for cashing in on these benefits till a further step-up in investment can be undertaken. The recession, which has hit some industries producing mainly capital and intermediate goods, must be used to shake down the high cost structure which these industries have built up over the years. Larger investment is desirable, of course, but more so is higher output at lower cost.
