BackChart of the Day | Twenty years of economic reforms
Chart of the Day | Twenty years of economic reforms
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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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