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  The acceleration of growth of the economy is mostly hampered by the weakening of the savings & investments. Savings & investment rates had steadily gone up from around 10% of the gross domestic product (GDP) in the early 1950s to touch peak levels of close to 40% of the GDP at the time of the global financial crisis in 2007–08. However, it has plummeted and stagnated since then. The savings rate has slumped from the peak level of 37.8% of the GDP in 2007–08 to 30.2% in 2021–22, a decline of 7.6 percentage points. The fall in investment rates has been even sharper with the numbers going down from 39.8% of the GDP in 2010–11 to 31.4% in 2021–22, a decline of 8.4 percentage points over the period. The average savings rate shot up from 24% of the GDP in the first decade of reforms to 34% in the second decade but then declined to 29% in the last decade, mainly on account of the slowdown in growth and per capita incomes. Similarly, while investment rates have moved up from 26% ...

The growing world remittances were $781 billion in 2021 and are expected to touch $794 billion in 2022. This growth rate was 10.2% in 2021, which was the highest since 2010.  While in 2022, its growth rate was of 4.9%. Out of the $794 billion, $626 billion went to low- and middle-income countries (LMICs).  Remittances are larger source of external finance for LMICs in 2022, as compared to foreign direct investment (FDI), official development assistance (ODA), and portfolio investment flows. The increase in migration to the Organization for Economic Co-operation & Development (OECD)countries which went up by 22% in 2021.  The stimulus packages to bolster the economies in the United States (US) and the European Union during the pandemic, boosted the remittances.   While the rising inflation & the hardening of the monetary stance in advanced economies are likely to adversely affect the flow of remittances in the coming years. The slump in the growth of remi...