Economic policy uncertainty and investment inefficiency in Indian hospitality firms during 2010 to 2023

This study uses panel data from 584 hospitality enterprises in India from 2010 to 2023 to examine how economic policy uncertainty affects corporate investment inefficiency. Policy instability hinders efficient capital allocation and reduces the sector's contribution to the UN Sustainable Development Goals, according to the report. Higher policy uncertainty increases underinvestment and overinvestment, worsening investment inefficiency. These distortions hinder enterprises' infrastructure, innovation, and resource efficiency investments, limiting progress toward SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 12 (Responsible Consumption and Production). Reliable results are obtained using different econometric parameters and estimation methods. The report emphasizes the need for stable and transparent economic policies to eliminate uncertainty and encourage sustainable, impactful investment. It also shows managers and investors how to incorporate policy uncertainty into strategic decision-making and link investment with long-term sustainable development goals.