De-jargoned: Incremental Capital Output Ratio (ICOR)
ICOR basically refers to the additional capital required to generate additional output.
Why is the rate of economic growth falling in India? One of the explanations is that the saving rate in the country is falling and lower savings and investment rate is leading to lower growth. Economic growth in any country, among other things, is a function of the level of savings and the rate of investment. Any additional investment required to increase output is termed as incremental capital output ratio (ICOR).