EAC-PM chief: Raising savings important to ramp up investments

India is poised to become the world's fourth-largest economy by 2025-26.

- S Mahendra Dev, EAC-PM chairman

Are we also on track to achieve the status of a developed country by the centenary year of Independence in 2047?

India is aspiring to become a developed country in terms of per capita income by 2047. There are some estimates of projected nominal annual growth of 11 per cent to 12 per cent and real growth rates of 7 per cent to 8 per cent to achieve this goal. Investments and exports are the two engines of growth. The government has given a capex push in the past few Budgets, and the growing infrastructure will have a multiplier effect on most sectors. Private investment and capacity utilization may further increase based on demand. India's policies will attract more foreign direct investment. An increase in savings in the economy, particularly financial savings, is important for higher investments. There are many opportunities for India, even if there are global headwinds, to reach the goal of becoming a developed nation by the centenary year of Independence.

What about inclusiveness and sustainability?