If growth rate is not over 6%, India will remain lower middle economy by 2047: Raghuram Rajan
New Delhi: Former Reserve Bank Governor Raghuram Rajan said India will still remain a lower middle country if the growth rate remains at 6 per cent annually without any rise in population by 2047 (Amrit Kaal) and will be reaching the end of the demographic dividend by then.
Speaking at a programme organised by Manthan here, the economist said if the country does not grow faster, it will grow older (demographically) before it gets richer, which means there is the burden of an aging population to deal with also at that point.
"If you do the math, at 6 per cent a year, you double every 12 years, and therefore in 24 years, we'll be four times our per capita income. Today, the per capita income in India, as you know, is just a little below $2,500 per person. multiply by four, we get $10,000 per person So if you do the math, at our current rate of growth, you know, strong as it is highest in the G20, we don't get rich but we stay lower middle income till 2047," he said.
The former RBI chief said some southern states are growing with regards to population at below reproduction rate, in other words, the fertility rate has fallen below reproduction rate thus slowing the growth.
"In other words, we will start the process of aging at some point around that time, which leads to the alarming question if we don't grow faster, we will grow old before we grow rich, which means we all have all the burdens of an aging population to deal with also at that point," he opined.
According to him, the current pace of growth is not enough to employ all those who are entering the labour force and insufficient to make the country us get rich, before it gets old.
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Nitish loses cool inside Bihar assembly over opposition's 'guns and bullets' jibe
Patna (PTI): Bihar Chief Minister Nitish Kumar lost his composure inside the state assembly on Tuesday when opposition members created a ruckus alleging that his government was ruling the state with the help of "guns and bullets".
The 76-year-old leader, who stood up to admonish the unruly members, also had a slip of tongue, as he underscored the brute majority enjoyed by the NDA, saying "our strength is two thousand and two".
The BJP-led coalition, which includes Kumar's JD(U) and a few smaller parties, had swept the Bihar assembly polls last year, bagging 202 seats of the 243-strong House.
Trouble began soon after the House assembled at 11 am, with RJD MLA Kumar Sarvajeet registering a protest against the police's baton charge on village 'chowkidars' (watchmen) here a day ago when they were staging a demonstration to press the demand for a hike in stipends.
"The 'chowkidars' who were demanding a hike in their pay are very much employees of the Home department. Yet, they were treated in a deplorable fashion yesterday," alleged Sarvajeet.
Several other MLAs of the opposition party also raised a slogan: "bandook goli ki sarkar nahin chalegi (will not allow a rule by brute force, with the help of guns and bullets)".
This provoked Kumar, the longest serving CM of the state, who heads the JD(U) and has had a couple of short-lived alliances with the RJD in the past.
He shouted: "Do not talk rubbish. This government will run without any hiccups. Just look at us. We are two thousand and two. And just look at how many of you have been left now."
Kumar was apparently referring to the RJD's drubbing in the last assembly polls when it returned with a tally of 25, one of its worst ever performances.
When RJD leader Bhai Virendra reminded the JD(U) supremo of their two short-lived alliances in the last one decade, Kumar shot back: "Yes, and you people always indulged in mischief, a reason why I pulled out never to return".
The CM also reminded the opposition party, which was unseated from power by the NDA helmed by him in 2005, that "You did nothing worthwhile during the period you were in power... Law and order had been so abysmal that people feared getting out of their homes after 5 pm. So you better not talk nonsense."
Amid the heated exchange, some of the opposition MLAs trooped into the well, briefly plunging the House into turmoil.
The agitated members got pacified after Parliamentary Affairs Minister Vijay Kumar Chaudhary rose to interject and said, "We will call representatives of various associations of chowkidars for talks. Their demands will be looked into, and appropriate action will be taken."
