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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London, Nov 22: A bomb disposal squad deployed as a “precaution” to the South Terminal of Gatwick Airport concluded an investigation into a "security incident" on Friday after making a “suspect package” safe.
The South Terminal of Gatwick Airport, the UK's second busiest airport after Heathrow, which was briefly shut owing to the incident reopened following the incident.
The Gatwick is around 45 km south of London.
Two people detained during the enquiries have since been allowed to continue their journey as the airport was opened.
“Police have concluded their investigation into a report of a suspect package at Gatwick Airport. Officers from the EOD (Explosive Ordnance Disposal) team made the package safe, and the airport has been handed back to its operator,” Sussex Police said in an updated statement.
“Two people detained while enquiries were ongoing have subsequently been allowed to continue their journeys. There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel,” the statement added.
Earlier on Friday, the incident caused severe disruption at the busy airport’s South Terminal, while the North Terminal of Gatwick Airport remained unaffected.
“Police were called to the South Terminal at Gatwick Airport at 8.20 am on Friday (November 22) following the discovery of a suspected prohibited item in luggage,” a Sussex Police statement said.
“To ensure the safety of the public, staff and other airport users, a security cordon has been put in place whilst the matter is dealt with. As a precaution, an EOD (Explosive Ordnance Disposal) team is being deployed to the airport. This is causing significant disruption and some roads around the South Terminal have been closed. We’d advise the public to avoid the area where possible,” it said.
Footage on social media taken outside the airport showed crowds of frustrated travellers being moved away from the terminal building.
Gatwick said it was working hard to resolve the issue.
“A large part of the South Terminal has been evacuated as a precaution while we continue to investigate a security incident," the airport said in a social media post.
“Passengers will not be able to enter the South Terminal while this is ongoing. The safety and security of our passengers and staff remain our top priority. We are working hard to resolve the issue as quickly as possible.”
Train and bus services that serve the airport were also impacted while the police carried out their inquiries.
In an unrelated incident in south London on Friday morning, the US Embassy area in Nine Elms by the River Thames was the scene of a controlled explosion by Scotland Yard dealing with what they believe may have been a “hoax device”.
“We can confirm the 'loud bang' reported in the area a short time ago was a controlled explosion carried out by officers,” the Metropolitan Police said in a post on X.
“Initial indications are that the item was a hoax device. An investigation will now follow. Some cordons will remain in place for the time being but the majority of the police response will now be stood down,” it added.
