May 7, 2018

Why do you need a chief economist to make this statement?

Source: https://www.financialexpress.com/economy/good-news-indian-economy-can-double-in-10-years-thanks-to-amazingly-fast-growth-rate-heres-why/1157150/

India’s projected GDP growth of over 7 per cent for the current fiscal is “amazingly fast” and if this momentum is maintained the size of the economy can double within a decade, ADB Chief Economist Yasuyuki Sawada has said. The country shouldn’t worry about not achieving 8 per cent growth but focus on increasing domestic demand by reducing the income inequality, he said. Growth is driven more by domestic consumption than exports, he added. The Asian Development Bank (ADB) has projected India to remain the fastest growing Asian nation with 7.3 per cent growth in 2018-19, and 7.6 per cent in 2019-20.

Pay attention to the highlighted text... (1.07)^10=1.96 - simple secondary school maths.

Put differently, if you put Rs.1,000/- in a FD earning you 7% pa compounded annually, your money will double at end of 10 years.

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