How fast should an economy grow?

Today we shall see how fast or at what rate should an economy grow. There can be no obvious answer to this question. Each society in each generation must decide between present and the future need according to its own urge for growth. In our economy, decisions in this respect have been made continuously through the five year plans. For example, the more we opted for heavy industries producing capital equipment capable of producing further capital, the greater was the base of production made secure for the future. But greater also was the sacrifice for the present generation.

It must go to the credit of our people that over the past forty years they have not insisted on the easy option of avoiding all current sacrifices in consumption. They have mad sure that future generations will have a stronger capital base for the economy and have permitted the large diversion of resources from consumption to investment in the plans.

But to make sure also that the economy does not break down, the burden of sacrifice in consumption by the people must not the intolerable. It is only when economic growth takes into account considerations of social justice, and fair distribution that an economy can take the hard decisions necessary for economic development effectively.