Archive · 20 Nov 2025
EAC Chair Calls for Higher Investment Rate to Boost India's Growth
India needs to increase its investment rate to grow faster.
The private sector and more savings can help.
The country should focus on manufacturing jobs and fix some issues in the manufacturing sector to become more developed by 2047.
Exports are also important for growth.
The EAC chairperson also talked about global challenges and the need for inclusive growth.
India needs to increase investment rate to 34-35% to achieve 7%+ growth
Private sector's role is crucial for this to happen
Increasing savings and financial sector reforms are needed
India should focus on labor-intensive, high manufacturing growth
Factor market reforms in land and labor are required to reduce 'missing middle' in manufacturing
- Who
- S Mahendra Dev, chairman, economic advisory council (EAC) to the Prime Minister
- What
- Called for raising India's investment rate to boost growth
- When
- Wednesday
- Where
- Delhi School of Economics
- Why
- To achieve a growth rate of 7% and above
Proponents of Higher Investment
Cautious Investors
Investment Rate Increase
Proponents of Higher Investment
Higher investment rate will boost growth and development
Cautious Investors
Increased investment may lead to higher inflation and debt
- Current Investment Rate
- 31-32%
- Target Investment Rate
- 34-35%
- Target Growth Rate
- 7% and above
- Importance of Private Sector
- Crucial
- Importance of Exports
- Strong export growth is necessary for 7-8% growth
