$5-trn GDP goal for 2025 impossible: Rajan
Says India has to grow at 12-15% real growth rate over next 2 yrs to reach target from $3.5 trn now
Former RBI governor Raghuram Rajan with Telangana CM Revanth Reddy
Rajan advises Revanth on TS finances: Former RBI governor Raghuram Rajan made some suggestions to Telangana Chief Minister A Revanth Reddy for improving the economic situation of the Telangana State. Rajan who was in Hyderabad as a part of his book tour met Revanth Reddy at latter’s residence on Sunday and discussed strategies to be adopted for the economic development of the State. The ex-RBI governor also shared his experiences during the meeting. Telangana Deputy Chief Minister Bhatti Vikramarka, IT and Legislative Affairs Minister D Sridhar Babu (right) and others were present on the occasion
Curtailing Inflation
- Rajan says he had brought down inflation from double digits
- And had cleaned up the bad debt
- But Modi govt is taking credit for now
Indian economy is faced with the single most important pressure point of job creation — Raghuram Rajan, former RBI Guv
New Delhi: Former RBI governor Raghuram Rajan, who has often been trolled for his frank views, says ideas and opinions of critics should be attacked, but not their motives, as for India’s progress listening was more important than preaching like a know-all vishwa guru.
In an interview, Rajan defended joining Congress leader Rahul Gandhi’s ‘Bharat Jodo Yatra’ saying he very strongly believed in the ideas of national integration and of love, not hate and thought the 135-day foot march was an attempt to make that point.
Rejecting as just ridiculous the charge by government backers that he was responsible for some of the mess in the economy that Prime Minister Narendra Modi inherited, he said he had brought down inflation from double digits and had cleaned up the bad debt which the government is taking credit for now.
Noting that for democracy to work, the government needs to share the data with the people, he said, “You can’t simply pull numbers out of a hat and say we will be a $5 trillion economy by 2025.” According to Rajan, it is virtually impossible for India to become a $5 trillion economy by 2025 unless a miracle happens.
“Because we are now maybe $3.5 trillion economy, to be a $5 trillion economy, you have to grow at 12 to 15 per real growth rate over the next two years,” he explained. Rajan wondered whether the government has any plan for increasing India’s economic growth from the current 6 per cent-plus to 12-15 per cent.
