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Parthasarathi Shome: India's savings and growth

No great economy is generated without innovation and invention, and embedding them in the growth process. This is India's missing link

India’s growth surge has been phenomenal. Growth reached 9.5 per cent in 2005-06 and 2006-07, and 9.2 per cent in 2007-08. Subsequently, the global financial crisis dampened growth to 6.7 per cent in 2008-09 and 7.4 per cent in 2009-10, but it is likely to pick up according to independent projectors. What lay behind growth of the Indian economy? 1. Was it neo-classical a la Robert M Solow and T W Swan, who emphasised the role of savings — translated into investment — in economic growth? 2. Was it demand-driven a la John Maynard Keynes, where an x amount of expenditure, even ...