Question 1 · 10 marks · 112 words written
Opening
India has been the fastest growing major economy of the world for most of the time in the past few years. India's growth in the recent times has been an anomaly given its investments slowdown and falling exports.
Investment slowdown: Investments reached a peak in 2007-08 following which there has been a downward trend to this day (35% in 2007 → ~25% in 2017 : GFCF/GDP).
Exports: Saw a very little growth, negative in 2015 → owing to falling global demand.
Implications for India:
Body · points
- Consumption-led growth does not create income-earning assets for the future growth.
- No physical capital formation which results into poor prospects of growth, incomes & living standards.
Close · no separate close
None written.