SEBI Reg. Investment Advisor

Download App
Help Center Subscribe
Money Works 4 Me Logo MoneyWorks4Me
Talk to Advisor
Login Get Free Account
Sign Up

MoneyWorks4Me

Log In Sign Up Schedule Free 15‑min Call
Login Get Free Account
Sign Up
  1. Home
  2. Stock Market News
  3. India needs to sustain 8% growth rate to become $5 trillion economy by 2024-25: CEA

India needs to sustain 8% growth rate to become $5 trillion economy by 2024-25: CEA

05 Jul 2019 Evaluate

In order to achieve the objective of becoming a $5 trillion economy by 2024-25, Chief Economic Adviser (CEA) KV Subramanian has said India needs to sustain a real Gross Domestic Product (GDP) growth rate of 8 percent. He added that to achieve this growth rate the country needs to accelerate investment in excess of 35 percent of the GDP. Besides, India's economic growth is expected to rebound from a five-year low to 7 percent this year (FY20).

He said ‘the investment as percentage of GDP has to be in excess of 35 percent. In fact, China for instance reached 50 percent of GDP. Definitely, we need to invest close to 35 percent.’ Currently, the country's investment level as percentage of GDP is 29.3 percent. He also said ‘From 29-odd if we get to mid-30s we will really get into virtuous cycle and then we need to sustain at that level’.

Subramanian further said international experience, especially from high-growth East Asian economies, suggests that such growth can only be sustained by a ‘virtuous cycle’ of savings, investment and exports catalysed and supported by a favourable demographic phase. Investment, especially private investment, is the ‘key driver’ that drives demand, creates capacity, increases labour productivity, introduces new technology, allows creative destruction, and generates jobs.

The CEA added that exports must form an integral part of the growth model because higher savings preclude domestic consumption as the driver of final demand. Similarly, job creation is driven by this virtuous cycle. He added that when examined across the entire value chain, capital investment fosters job creation as the production of capital goods, research and development and supply chains generate jobs.

Register Now to get our Free Newsletter & much more!
2026 ©The Alchemists Ark Pvt. Ltd. All rights reserved. MoneyWorks4Me® is a registered trademark of The Alchemists Ark Pvt. Ltd.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: