<p class="title">Stating that the economy is in bad shape, former Reserve Bank governor C Rangarajan has said at the current growth rate, reaching the USD 5-trillion GDP target by 2025 is "simply out of question".</p>.<p class="bodytext">The Modi government soon after assuming office for the second term has set a target of taking the economy to USD 5 trillion over the next five years. But since there have been dark clouds gathering all over the economy leading many to question the maintainability of the target.</p>.<p class="bodytext">The economy has been on a steady decline with the growth rate slowing from 8.2 percent in FY16 to 6.8 percent FY19.</p>.<p class="bodytext">While the first-quarter growth slipped to a six-year low of 5 percent, the best forecast for the second quarter is 4.3 percent now. Even RBI has lowered its growth full year forecast by a full 9o bps in two months to 6.1 percent in its October policy review.</p>.<p class="bodytext">"Today our economy is about USD 2.7 trillion and we are talking about doubling this over the next five years at USD 5 trillion. The required rate of growth to achieve that level is in excess of 9 percent per annum. Reaching USD 5 trillion by 2025 is simply out of question," Rangarajan said here on Thursday.</p>.<p class="bodytext">"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. Thereafter the economy may pick up," he said while addressing a function organised by IBS-ICFAI Business School.</p>.<p class="bodytext">He also if at all the GDP becomes a USD 5-trillion gorilla, our per capita income will grow still USD 3,600 up from the present USD 1,800, leaving us still in the low-middle income country bracket.</p>.<p class="bodytext">"The definition of a developed country is the one whose per capita income is USD 12,000. It will take 22 years for us to reach that level provided we grow at 9 percent per annum," the former central banker said.</p>
<p class="title">Stating that the economy is in bad shape, former Reserve Bank governor C Rangarajan has said at the current growth rate, reaching the USD 5-trillion GDP target by 2025 is "simply out of question".</p>.<p class="bodytext">The Modi government soon after assuming office for the second term has set a target of taking the economy to USD 5 trillion over the next five years. But since there have been dark clouds gathering all over the economy leading many to question the maintainability of the target.</p>.<p class="bodytext">The economy has been on a steady decline with the growth rate slowing from 8.2 percent in FY16 to 6.8 percent FY19.</p>.<p class="bodytext">While the first-quarter growth slipped to a six-year low of 5 percent, the best forecast for the second quarter is 4.3 percent now. Even RBI has lowered its growth full year forecast by a full 9o bps in two months to 6.1 percent in its October policy review.</p>.<p class="bodytext">"Today our economy is about USD 2.7 trillion and we are talking about doubling this over the next five years at USD 5 trillion. The required rate of growth to achieve that level is in excess of 9 percent per annum. Reaching USD 5 trillion by 2025 is simply out of question," Rangarajan said here on Thursday.</p>.<p class="bodytext">"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. Thereafter the economy may pick up," he said while addressing a function organised by IBS-ICFAI Business School.</p>.<p class="bodytext">He also if at all the GDP becomes a USD 5-trillion gorilla, our per capita income will grow still USD 3,600 up from the present USD 1,800, leaving us still in the low-middle income country bracket.</p>.<p class="bodytext">"The definition of a developed country is the one whose per capita income is USD 12,000. It will take 22 years for us to reach that level provided we grow at 9 percent per annum," the former central banker said.</p>