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Using the high frequency data, the paper analyses the link between public investment and the private corporate investment in India for the post pandemic period. The results of ARDL models reinforced that there is no crowding out effects in India. The monetary variables including cost of credit – both long term and the short-term rates of interest - have been as significant in determining private corporate investment in the medium and long terms, which has crucial policy implications. The output gap uncertainties due to the global economic headwinds and geopolitical risks, cause lags in the responsiveness of private corporate investment to public investment.

Key words: Public Investment, Infrastructure, Private Corporate Investment, Crowding –in effects, Fiscal policy, Public Sector.

JEL Code: E62, C32, H6.