Efforts to boost Domestic Savings needed to restrain its declining trend

PARTHA ROY, Kolkata: India’s growth journey since its independence progressing reasonably well despite challenges said, Shri Rakesh Mohan noted economist and Member of Economic Advisory Council of Prime Minister of India, while addressing Special Session on Viksit Bharat organised by Calcutta Chamber of Commerce on 30th May 2025 in Kolkata.

Shri Mohan mentioned India adopted economic development strategy & policies with evolving global economic growth path ways in its more than 75 years of journey.

India’s 5 years plans objectives were achieved fairly well despite challenges. Shri Mohan emphasized India’s growth rate needs to move up 2 – 2.5% more over current annual growth rate. India needs to have annual growth rate of 8% approximately in next phase in its transformational journey to developed nation by 2047.

For last 15 years approximately, savings growth rate has been declining but consumption growth rate has gone up, so investment needed for the country has been declining in several sectors. Initiatives will be needed to increase domestic savings. Shri Rakesh Mohan suggested for healthy business growth, regulatory institutions need to be strengthen across India to monitor compliance of regulations. Shri Mohan also emphasized on need for strengthening of State capacity of Public Administration at Union & State Governments level including at Municipal / Panchayat level administrations. For boosting export, India needs to harmonise its export policies to export in evolving growth regions in nations East & South East of India and new and other parts of planet.