Investment is the most important factor to ensure economic growth in the country, former RBI Governor D Subba Rao said here today.
"I am sure all of you have read about economic survey that was presented to the Parliament last week. What the economic survey said was that in a situation where you have such low real investment, low export volume, low credit growth, you cannot sustain seven plus per cent growth.
"So, if you ask me give a one word answer to what should be done to get India to continue to grow, I would say investment," he said.
Subba Rao was speaking at a meeting jointly organised tonight by the Rotary Clubs of Hyderabad and the Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI).
Investment and growth rate have a strong correlation, he said.
"When we grew at nine plus per cent before the global financial crisis from 2003 to 2008, there was very high investment. Again after the crisis, growth dropped because investment dropped. Today, there is no investment taking place. So, unless investment jacked up, it is difficult to accelerate growth," Rao said.
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