Consensus has not yet been reached on the causal relationship between income disparity and growth rate in economies with a low poverty rate, as much theoretical and empirical research shows differing results.4 That said, I believe an increase in the number of people who are given the opportunity for higher education and to learn advanced skills would lead to an accumulation of human capital, positively affecting economic growth from the supply side.
While alluding to this issue in my earlier speeches, I had noted that there is an inherent potential for households to diversify their investment portfolio encompassing Government Securities. With this in view, commercial banks were given the facility of a second SGL account to enable them to hold Government Securities on behalf of customers in safe custody in demat form.