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Role of Consumption and Investment Expenditures in India’s Growth

By: Rangarajan, C & Srivastava, D K.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 60(23), Jun 07, 2025: p.14-16.Subject(s): Stabilisation strategies, Investment-led growth strategy, consumption and investmentSummary: A point often debated in the context of long-term growth and stabilisation strategies is the relative importance of consumption and investment expenditures. One opinion is that it is private final consumption expenditure that is important, and that India’s growth strategy should be driven by encouraging consumption. This article, however, argues that an investment-led growth strategy is the best choice and that government expenditure still holds the key for stabilisation or short-term stimulation. -Reproduced https://www.epw.in/journal/2025/23/commentary/role-consumption-and-investment-expenditures.html
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A point often debated in the context of long-term growth and stabilisation strategies is the relative importance of consumption and investment expenditures. One opinion is that it is private final consumption expenditure that is important, and that India’s growth strategy should be driven by encouraging consumption. This article, however, argues that an investment-led growth strategy is the best choice and that government expenditure still holds the key for stabilisation or short-term stimulation. -Reproduced

https://www.epw.in/journal/2025/23/commentary/role-consumption-and-investment-expenditures.html

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