AHMEDABAD: Former Reserve Bank of India governor C Rangarajan said that the current situation of the economy is really bad and reaching the USD 5 trillion target by 2025 is out of the question.
Currently, India is at 2.7 trillion economy and the required rate to double that, as BJP said they would, is in excess of 9% per annum. He added that at the current rate, reaching five trillion dollar economy is out of the question.
Addressing a function organised by IBS-ICFAI Business School, he said that this year sees just 6% growth and next year will probably see 7%.
He said that India would still be at the low-middle income country bracket with per capita income growing from USD 3,600 (around Rs 2.58 lakh) up from the present USD 1,800 (around Rs 1.29 lakh).
A developed country is defined by the per capita income as big as USD 12,000 (around Rs 8.6 lakh) and it will take India 22 years to reach there and that too with 9% growth.