The neoclassical growth model led by Robert Solow (1956) reveals a clear connection between saving and economic growth. The model indicates that greater saving leads to greater investment, which in turn leads to greater economic growth. The assumption is that greater saving contributes positively to economic growth; therefore, this has led to strong macroeconomic policy recommendations for development in many countries. Rationale of the study: Since saving is one of the major factors for increasing investment and economic growth is indisputable. The accumulation of savings can be considered as the source of capital stock which plays a crucial role in creating investment, production and employment and all these activities ultimately foster economic growth. India has several forms of savings, among which household savings generally constitute the largest share of aggregate national savings. Based on this baseline study we would like to find out the relationship between saving, investment and economic growth in India since the reform period. Research
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