‘Young workers, high savings put India on strong ground’

Prime Minister Manmohan Singh has underlined strong fundamentals in the Indian economy, saying high savings and a young working population signalled underlying strengths to boost growth.

Prime Minister Manmohan Singh has underlined strong fundamentals in the Indian economy, saying high savings and a young working population signalled underlying strengths to boost growth.

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“Despite the global economic downturn, the Indian economy is expected to maintain a growth rate of 7 to 7.5 per cent next year,” Singh said in Muscat.

“The macro economic fundamentals of the economy are sound. Our domestic savings rate is 35 per cent of our gross domestic product (GDP) and our investment rate is 37 per cent of our GDP. Our young demographic profile will lead to a further increase in these rates of savings and investment over the coming years,” the prime minister said.