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Forget GDP. Look at ICOR.

Finshots Daily

Measuring Economic Efficiency with ICOR

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This chapter discusses the limitations of using GDP as a measure of economic growth and introduces the concept of Incremental Capital Output Ratio (ICOR) as a better indicator of productivity and efficiency. It explores India's decreasing ICOR over the past decade and explores the reasons behind this decline, as well as suggesting sector-wise analysis for a more accurate assessment.

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