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Can India become a $20 Trillion Economy? | Deep Dive with Neelkanth Mishra

SparX by Mukesh Bansal

NOTE

Factors influencing productivity and output in an economy

Improving one's output is influenced by factors such as injecting more capital input, organizing resources efficiently through Total Factor Productivity (TFP) which involves reducing excess inventory and streamlining distribution channels. In measuring productivity, labor quality improvement through education and capital injection are significant drivers. Additionally, the growth in TFP is attributed to incentive structures, market forces, and technology transfer. China's success in productivity growth is linked to attracting foreign investment, expertise, and effective capital formation by institutionalizing financial repression.

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