ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Saving and Investment Estimates

The CSO's latest estimates of savings and investment in 2003-04 suggest that India no longer faces a constraint on domestic savings. However, there is a need to be careful before coming to such conclusions. A close examination of the estimates suggests that they project an exaggerated scenario of high domestic savings and investment. The numbers are the result of a faulty system of estimation which was to be discarded long ago. The estimates for 2003-04 thus reopen the many misgivings estimation procedures have raised in the past.

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