gfiles magazine

September 27, 2015

Imperatives for growth



Growth is indeed a major outcome of the planning process. We have to plan for a growth of 8 per cent to 9 per cent on a long-term and sustained basis to become a middle income country by 2025, or in the next decade. This is not a very ambitious goal for a country with per capita income levels of about $1,500.  The average growth of the GDP in the period 1990-2010 averaged 7.5 per cent. These were the initial years of reforms. Unfortunately, in the last three years growth has decelerated and averaged about 5 per cent. In the first two quarters of the current year it has continued to be sluggish and averaged 5.5 per cent. While part of the reason for this decline is slow growth in international demand, domestic policies have also led to depressed growth sentiments.

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