Aspects of India's Development Strategy for 1980s Sukhamoy Chakravarty It remains a puzzle that higher rates of savings have not resulted in higher rates of growth of the Indian economy. While it may he true that the capital-output ratio has risen on the margin, it is not clear -what the factors are which have contributed to this process an an economy-wide basis. Moreover, the growth rate viewed as a product of the marginal capital-output ratio and the savings ratio is at best an equilibrium relationship and often little more than an accounting framework. In either case, it does not tell a causal story.
