India becoming $5 trillion economy by 2025 ‘simply out of question’: Ex-RBI Governor C Rangarajan
New Delhi: Claiming that India will need another 22 years of sustained growth to become a “developed country,” former Reserve Bank of India (RBI) governor C Rangarajan said on Thursday that at the current growth rate, India becoming a USD 5 trillion economy by 2025 is “simply out of question.”
“The interesting thing is, even if you reach USD 5 trillion, the per capita income in India will grow from the current level of USD 1800 to USD 3600. Even then, India will be called low-middle income country,” said the economist who was awarded the Padma Vibhushan in the year 2002.
“In order to become a high middle income country, the per capita income has to USD 3800 which will take another few years… The definition of a developed country is one whose per capita income is USD 12000. It will take 22 years for India to grow at 9 percent per annum to reach there. The task before us is highly daunting. We need to get out of the current slowdown as quickly as possible,” he told the gathering at Ahmedabad Management Association (AMA).
Pointing out the Indian economy grew “far short of expectations” at 3.5 percent annually for the first 40 years after the country’s independence, Rangarajan said the annual average growth rate improved in the 1990s to 6.8 percent, especially after liberalisation in 1992-93. “The highest rate of growth that we have seen in India, is between 2005-06 and 2007-08, when the annual average rate of growth of the economy was 9.4 percent… In 2008-09, the growth rate fell down because of the international financial crisis. But in 2009-10 and 2010-11, once again the growth rate picked up and went beyond 8 percent,” he said.
Stating that the economy was currently experiencing “slowdown”, the veteran economist said the economic growth has slowed down from 8.2 percent in 2015-16 to 6.8 percent 2018-19.
“So the economy has declined even as per the new series of data… If you look at the quarterly data of 2017-18, the growth in fourth quarter was 8.1 percent, and as per the first quarter of 2019-20, the growth has come down to 5 percent. There is no doubt about the fact that the Indian economy has slowed down and it is a matter of concern,” Rangarajan said adding that economic growth during the current year will not be more than 6 percent.
Claiming that the government could increase its expenditure as one of the measures to prop up the economy, he said the scope of government implementing is limited as “many of the revenue projections made in the Union budget may go wrong.” He said Goods and Services Tax was not providing “enough revenue” as projected earlier. Stating that both long term and short term measures are needed, he said disinvestment can help in providing funds to the government to a certain extent. Increasing FDI and exports can also help to tide over the crisis,” he added.
Courtesy: indianexpress.com
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BJP Minority Morcha leader criticises PM's remarks, expelled from party
Jaipur (PTI): Bikaner BJP Minority Morcha district president Usman Ghani, who expressed displeasure with Prime Minister Narendra Modi's recent remarks in Rajasthan, was on Wednesday expelled from the party for "tarnishing" its image.
Ghani, while talking to a news channel recently in New Delhi, had said that the BJP was going to lose three-four Lok Sabha seats out of 25 seats in Rajasthan.
He also condemned Modi's remarks regarding Muslims during election rallies in the state.
When asked about the remarks of Modi regarding Muslims, Ghani had said that being a Muslim, he was disappointed at what the prime minister said.
He said that when he "goes to Muslims to seek votes" for the BJP, the community people talk about the kind of remarks made by the PM and "look for answers" from him.
He also said that the Jat community is angry with the BJP in the state and they have voted against the party in Churu and other constituencies.
Ghani had also said that he was not afraid if the party takes any action against him for what he was saying.
After a video of Ghani surfaced on social media in which he is talking to a news channel reporter, BJP state disciplinary committee chairman Onkar Singh Lakhawat said that an attempt was made by Usman Ghani to "tarnish" the image of party in the media.
"The party took cognizance of the act of Usman Ghani to tarnish its image and expelled him from the primary membership of the party for six years, considering it a breach of discipline," Lakhawat said in a statement.
Bikaner Lok Sabha seat went to polls in the first phase on April 19.
While addressing a rally in Rajasthan's Banswara, PM Modi on Sunday had suggested that if the Congress comes to power, it would "redistribute" wealth to Muslims. He alleged that the Congress plans to give the people's hard-earned money and valuables to the "infiltrators" and "those who have more children".
The remarks have triggered a backlash from several opposition parties.
