|
|
Article: Capital formation must rise by 2% for 8% GDP growth.
- Article from:
- Economic Times (New Delhi, India)
- Article date:
- February 10, 2006
CopyrightCOPYRIGHT 2006 The Economic Times. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Feb. 10--For the Indian economy to sustain strong growth rates in the long run, investments must start playing a greater role in economic growth. There are signs of an increase in overall investments happening in the economy, as a recent release from the ministry of statistics has shown that gross capital formation at 30 percent of GDP in '04-05, one of its highest ever levels.
It is worth noting that gross capital formation as a percentage of GDP at constant prices is at 28.5 percent, which is below the 30 percent mark at current prices. In fact, this high value of 30 percent has also appreciated because of the errors & omission category, present in the ...