Investment and savings in India underestimated, impacting economic growth.
The article clarifies how savings and investment are underestimated in an open economy like India. It explains that the current method used to calculate savings and investment doesn't account for all the relevant factors, leading to errors in the reported numbers. By adjusting for net income from abroad, the researchers show that the actual levels of investment and foreign savings are higher than previously thought. This has important implications for understanding the true economic situation in the country.