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How to make India Greek to us

By Economic Times - 4 months ago
To ensure India becomes 'Greece' with reasonable assumptions about population growth and currency depreciation, and assuming the incremental capital-output ratio remains at 5 (or potentially increases with technological advancements), investment (gross fixed capital formation, or GFCF) must reach at least 40% of GDP to achieve a long-term average annual GDP growth of 8% at current prices. Currently, India's GFCF stands at 35% of GDP.

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