Even in 2019, when GDP growth is projected at 7.8%, investment as a percentage of GDP is expected to be 29.7%, while savings are predicted to be 28.1%. Now consider 2011, when GDP growth was 6.6%— investment in that year was 39.6% of GDP, while savings were 35.4% of GDP. In 2019, with a much lower proportion of savings and investments, how do we have higher GDP growth? Are higher exports the reason for higher growth? But won’t higher consumption growth without growth in investment lead to higher inflation?
Source: Mint November 14, 2017 02:26 UTC