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8% growth needed for a $5-trillion economy: Ex-RBI governor

06:09 PM Jul 12, 2019 | Team Udayavani |

Hyderabad: To become a USD five- trillion economy in the next five years, the country should grow at eight per cent per annum and it requires a clear roadmap, former RBI governor C Rangarajan said here on Friday.

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Speaking at the ninth convocation of Icfai Foundation for Higher Education, he said though investments are the key drivers of economic growth, policymakers must try hard to create the right climate for investments.

The major task of the country is to move as fast as it can to achieve a higher standard of living. The goal is to make the economy a USD 5-trillion one in the next few years,” he said.

Prime Minister Narendra Modi recently said the union budget for 2019-20 lays down a roadmap for nearly doubling the size of the Indian economy to USD 5 trillion in five years by raising per capita income, boosting consumption and increasing productivity.

“Investment is the key driver of economic growth. There are limits to which public investment can grow as the demand for welfare expenditure keeps increasing,” Rangarajan said.

Private investment by companies both small and large have a bigger burden to bear. Policymakers must try hard to create the right climate for investments to come, he said.

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