- Former Reserve Bank of India Deputy Governor has said that there is a need to increase savings and investment rate to move India to a new growth trajectory in the future.
- He said that Indian growth accelerations since Independence is clearly associated with consistent trends of increasing domestic savings and investment over the decades.
- But the savings rate has fallen in recent years and the reasons are not very clear.He said that this is a major issue and needs to be tackled urgently,
- He also said that household savings which was about 21% of GDP during 1997-2003 has reached around 7% in recent years.The household savings need to be restored to the 10% level in the near future and then increased gradually to around 13% by 2030-35.
- Further,he said that urgent policy attention is required to push growth to 8-7% on a sustained basis.He also stressed on the need to relook the structure and functions of the think tank NITI Aayog as well as giving it fund allocation powers analogous to that of the Planning Commission.
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