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NEW DELHI, June 3 Asia Pulse - India needs to increase public investment significantly and reduce the time lag in implementing major projects in order to achieve an investment rate of 28.41 per cent and a gross domestic product (GDP) growth rate of 8.0 per cent during the 10th Plan period.
"Eight per cent growth rate is not impossible during the Xth Plan period. The initial thrust should be from the government through public investment," Planning Commission advisor (perspective planning), Pronab Sen, said at a panel discussion organised by Asian Development Bank here.
He pointed out that the Investment-GDP ratio would come down significantly if gestation lag, which is the delay in implementing a project, is reduced from 2.8 to 2.1 years.
Modifying the Harrod-Domar growth model, the commission is drawing up a model for India's GDP growth ...