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Shift growth trajectory to right
Financial Express Hyderabad
|August 29, 2025
It is widely believed that potential output of the economy has moderated to around 6-6.5%.
The average GDP growth for 50 quarters since 2012-13 was 6.1%. In 2024-25 growth moderated to 6.5%, with growth in three of the four quarters falling below 7%. We feel growth requires a rightward shift in production possibility frontier and increase in the feasible optimum level of growth. Three issues are critical for this: increase of capital stock, relocation of labour to more productive sectors, and improvement in total factor productivity.
This story is from the August 29, 2025 edition of Financial Express Hyderabad.
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