Does the Savings-Led Growth Hypothesis Support the Viksit Bharat@2047 Mission in India?

By : P. K. Mishra

Page No: 107-117

Abstract
Savings is considered a driver of economic growth as it contributes to investment in an economy. In this context, this study examines the validity of the savings-led growth hypothesis in India over the sample period spanning from 1961 to 2022. By estimating the Autoregressive Distributed Lag (ADL) model, the study found a positive effect of savings on economic growth in the country. Thus, the study validates the savings-led growth hypothesis. The implication is that sustaining higher economic growth requires an increase in gross domestic savings. So, the study recommends savings promotion measures in the country. Therefore, the Viksit Bharat@2047 mission is not an unattainable goal in the country.

Author :
P. K. Mishra : Department of Economic Studies, Central University of Punjab, Bathinda, India
 

DOI: https://doi.org/10.32381/PROD.2024.65.02.1