Double-digit dreams
Double-digit dreams
The splendid rebound in economic growth over the past few quarters has once again raised hopes that the Indian economy is back on the fast track for good. The Economic Survey released in February alluded to the possibility that India could grow at double digits in the coming decade. Such optimism is rampant in the private sector as well. Participants in a discussion on financial markets that was hosted by this newspaper in Mumbai last week were uniformly bullish about our economic prospects.
There is good reason to believe that double-digit growth is within our reach. The coming 10 years could see India in a demographic sweet spot, when the proportion of our population in the working age groups grows while the dependency ratio drops. The global experience is that savings and investment rates reach their peaks at such moments of demographic transition. Growth accelerates.
Also Read Niranjan Rajadhyaksha’s earlier columns
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