New Delhi, Feb 29 (KNN) India stands at a pivotal juncture, poised to potentially elevate its GDP growth rate to around 8 per cent, asserts a recent report from Barclays Research.

Titled "India’s Breakout Moment," the report underscores the significance of the right policy mix in propelling India towards becoming the foremost contributor to global growth by the decade's end.

The report emphasises that India's capacity to boost its growth hinges crucially on its ability to self-finance investments while upholding macroeconomic stability.

A key determinant of this stability is the augmentation of the savings pool, which is imperative to bolster domestic investment.

Rahul Bajoria, Managing Director & Head of EM-Asia (ex-China) Economics at Barclays, underscores the necessity for India to augment its savings rate to catalyse greater investment.

He highlights the risk of vulnerability on the external front if savings fail to keep pace with accelerated GDP growth.

The report identifies several factors conducive to augmenting the savings rate over the coming decade.

Shifts in consumption patterns, demographic dynamics, and fiscal consolidation are anticipated to play pivotal roles in fostering a conducive environment for savings growth.

According to the report's projections, the household savings rate could potentially increase by a significant 2.7 percentage points by FY30.

This uptick is attributed to a decline in the marginal propensity to consume alongside a rise in per capita income.

Barclays' report offers an optimistic outlook for India's economic trajectory, forecasting a potential surge in GDP growth rates with the right policy interventions.

As India navigates its path towards higher growth, the imperative of fortifying its savings base looms large.

By harnessing demographic shifts, consumption trends, and fiscal prudence, India stands poised to seize its breakout moment and emerge as a leading engine of global economic growth by the close of the decade.

(KNN Bureau)