Investment most important factor for economic growth: D Subbarao

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New Delhi | Updated: August 14, 2017 10:21:16 PM

Investment is the most important factor to ensure economic growth in the country, former RBI Governor D Subbarao said here today.

Investment, Investment in india, Investment growth, economic growth, indian economic growth, economic growth in india, economic survey, economic survey on investment, real investment, export volume, credit growth, Subba Rao, Ex RBI governor, RBIInvestment and growth rate have a strong correlation, D Subba Rao said. (Image: IE)

Investment is the most important factor to ensure economic growth in the country, former RBI Governor D Subbarao said here today. “I am sure all of you have read about economic survey that was presented to the Parliament last week. What the economic survey said was that in a situation where you have such low real investment, low export volume, low credit growth, you cannot sustain seven plus per cent growth.

“So, if you ask me give a one word answer to what should be done to get India to continue to grow, I would say investment,” he said. Subbarao was speaking at a meeting jointly organised tonight by the Rotary Clubs of Hyderabad and the Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI). Investment and growth rate have a strong correlation, he said.

“When we grew at nine plus per cent before the global financial crisis from 2003 to 2008, there was very high investment. Again after the crisis, growth dropped because investment dropped. Today, there is no investment taking place. So, unless investment jacked up, it is difficult to accelerate growth,” Subbarao said.

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