•  The productivity of capital use, as measured by the Incremental Capital Output Ratio (ICOR), has been high by Asian standards and is showing downward trend reflecting improvement in productivity growth as well as more intensive use of existing capacity.
This point to prospects for sustained high growth in future, given the existing level of investment in the economy, coupled with upward trend in domestic savings. •  A noteworthy development during the recent years has been the continued recovery in manufacturing sector.