Saving and Capital Formation

Today, roughly a quarter of GDP is deployed towards capital formation. Net capital inflows from abroad have been of the order of 1-3% of GDP.

Share in GDP (%)

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                      Gross Domestic
               _____________________________
Year           Saving      Capital Formation
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1960-61          12.7            15.7
1965-66          14.5            16.8
1970-71          15.7            16.6
1975-76          19.0            18.8
1980-81          21.2            22.7
1985-86          18.9            21.3
1990-91          23.6            26.3
1993-94          20.2            20.4
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Centre for Monitoring Indian Economy, Bombay
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Last updated: May 1995.