The main reason for low growth rate in India, in spite of high rate of savings and capital formation is

1. The question explores the relationship between savings, capital formation, capital-output ratio, and economic growth rate. 2. A high rate of savings and capital formation (investment) generally fuels economic growth. 3. However, the efficiency with which this capital translates into output is measured by the Capital-Output Ratio (COR), specifically the Incremental Capital-Output Ratio (ICOR), which indicates the additional capital required to produce an additional unit of output. 4. A high Capital-Output Ratio implies that a larger amount of investment is needed to generate a given amount of output. This indicates lower efficiency of capital. 5. Therefore, even with high savings and investment, if the capital-output ratio is high, the resulting growth rate will be relatively low. 6. Options like high birth rate affect per capita income, while low foreign aid affects the sources of investment.