Synopsis
The reality is that only one component of GDP — investment — can send growth into orbit. For double-digit growth, investment needs to touch 40% of GDP. We know that from the experience of East Asia.
By Dhiraj NayyarGoI believes it can see green shoots of recovery in an economy ravaged by the Covid-19 pandemic. Indeed, somehigh-frequency indicators show encouraging news. Government tax collections don’t convey the same optimism. It is quite likely that the agriculture sector — which pays no direct taxes — buoyed by a good monsoon, is driving rural consumption.But there is a limit to which a sector that only contributes 14% of GDP can drive
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