Reaching $5 trillion economy in next 5 years is impossible : Former Governor Rangarajan
On Friday the Former Reserve Bank of India Governor C Rangarajan feels that the reaching the $5 trillion GDP target by 2025 is impossible.
While addressing a function organized by IBS-ICFAI Business school said that “Today our economy is about $2.7 trillion and we are talking about doubling this over the next five years at $5 trillion.The require rate of growth to achieve the level is in excess of 9 percent per annum.
He further added that Reaching $5 trillion by 2025 is simply out of question. You have lost two years. This year it is going to be under-6 percent growth and next year it may be about 7 percent. After that, the economy may pick up,"
He also said that if at all the growth target is achieved, our per capita income will be at $3,600, up from the present $1,800, leaving us in the low-middle income country bracket.
He said that"The definition of a developed country is the one whose per capita income is $12,000. It will take 22 years for us to reach that level provided we grow at 9 percent per annum,"