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Chart of the Day | Twenty years of economic reforms

Chart of the Day | Twenty years of economic reforms
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First Published: Mon, Jul 25 2011. 05 15 PM IST

Updated: Mon, Jul 25 2011. 05 15 PM IST
India needs around four new units of capital to create one extra unit of output. The acceleration in economic growth since 2003 was built on a sustained rise in savings and investment ratios. National savings increased thanks to (till recently) an improvement in government finances and stronger corporate financials. At around 40% of gross domestic product, India now has an investment rate that is comparable to what many East Asian countries had when their economies took off. A high investment rate will need to be maintained if India is to continue to grow at build modern infrastructure.
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First Published: Mon, Jul 25 2011. 05 15 PM IST