Gross Domestic Investment and Saving

[abhishreshthaa]

As per Colin Clark to maintain the same level of living a country requires an additional investment of 4 percent per annum if its population increases at the rate of 1 percent per annum.


In a country like India where the rate of population growth is 2.11 percent (during 1981-91), about 8 percent investment is needed to offset the additional burdens imposed by a rising population.


Thus, India required as high as 14 percent level of gross capital formation in order that it may cover depreciation and maintain same level of living.


A still higher rate of gross capital formation alone can give a way for economic growth to improve living standard of the population

 

[jiten005]

As per Colin Clark to maintain the same level of living a country requires an additional investment of 4 percent per annum if its population increases at the rate of 1 percent per annum.


In a country like India where the rate of population growth is 2.11 percent (during 1981-91), about 8 percent investment is needed to offset the additional burdens imposed by a rising population.


Thus, India required as high as 14 percent level of gross capital formation in order that it may cover depreciation and maintain same level of living.


A still higher rate of gross capital formation alone can give a way for economic growth to improve living standard of the population

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