Connect with us

Hi, what are you looking for?

[t4b-ticker]

India

India Becoming $5 trillion Economy By 2025 ‘Impossible’: Ex-RBI Governor Rangarajan

Delivering his address at 11th Convocation of ICFAI Foundation for Higher Education, Rangarajan said attempts should be made to curb the adverse impact of a third wave of COVID-19, if it happens.

Former RBI Governor Rangarajan.

Hyderabad: India becoming a USD five trillion economy by 2025 is impossible under the current circumstance and the country needs to grow at nine per cent per annum for the next five years in order to achieve that, former Reserve Bank Governor C Rangarajan said on Friday.

Delivering his address at 11th Convocation of ICFAI Foundation for Higher Education, Rangarajan said attempts should be made to curb the adverse impact of a third wave of Covid-19, if it happens and both the coverage of vaccination and the pace of investment in health infrastructure should be accelerated within the strategy of expanding the overall infrastructure investment.

ALSO READ: RBI Keeps Interest Rates Intact, Retains Accommodative Stance

 “A few years ago, there was the hope that India would become a USD five trillion strong economy by 2025. That has become impossible. India’s economy was USD 2.7 trillion strong in 2019. At the end of March 22, we will still be at the same level. To go from USD 2.7 trillion to USD 5 trillion, the economy has to grow at 9 percent for five consecutive years,” Rangarajan said.

In order to achieve the USD five trillion economy, growth which is the answer to many socio economic problems, should therefore become the undivided concern of the government and equity which is equally important will be a distant dream unless it is supported by high growth spurred by reforms. 

As revenues improve, expenditures can be increased even as there is no need to reduce the fiscal deficit below the budgeted level of 6.8 percent of GDP and fiscal consolidation may start from the next financial year, he opined.

ALSO READ: Rupee Recovers By 19 Paise To End At 74.79 Against US Dollar

India indeed needs a faster rate of growth to make up for the loss of output in the previous two years from the trend rate and  must lay the foundation for a faster growth in this year itself, the economist said.

Stating that the economic activity had come to a grinding halt due to the lockdown imposed to prevent the spread of Covid-19, he said in 2021, India’s GDP fell by 7.3 per cent, USA by 3.5 per cent, France by 8.1 per cent and the UK by 9.8 per cent.

It is only with the relaxation of lockdown restrictions, the economy has started looking up, the former Chairman of the Economic Advisory Council to the Prime Minister said.

Advertisement. Scroll to continue reading.

“While the economic impact of the first wave was severe, the health impact of the second wave was serious. The contraction of the economy has hit hard the daily wage earners and migrant labour. Life Versus Livelihood has emerged as a serious issue,” he said.

ALSO READ: Sensex Rises 488 Pts Amid Global Rally; Nifty Ends Near 17,800

You May Also Like

India

"On Thursday, India's cumulative Covid-19 vaccination coverage crossed 1 billion. We achieved a target which was difficult, but extraordinary", said PM Modi during his...

India

New Delhi: As India’s Covid-19 vaccination drive touched a historical record of 100 crore mark on Thursday, the occasion was marked by celebrations around...

India

A team of NCB conducted a raid at Ananya Panday’s house earlier today after her name appeared in the WhatsApp chats of Aryan Khan.

Entertainment

Earlier today, a team of NCB was seen at Bollywood actor Ananya Panday's residence in Mumbai.

Advertisement