India can't be USD 5 trillion economy before 2029: Former RBI Governor D Subba Rao

HYDERABAD: "India can become a five-trillion-dollar economy as envisaged by Prime Minister Narendra Modi, but not before 2028-29. Also for this, we need to clock an annual GDP growth rate of 9% consistently for next five years," said Dr D Subba Rao, former RBI Governor at the Federation of Telangana Chambers of Commerce and Industry (FTCCI ) on Monday.

"I see eight key challenges for India to overcome to achieve the dream of 5 trillion economy. They are Increasing Investment; Improving productivity; Improving Education and health outcomes; Creating jobs; Raising Agriculture productivity; Maintaining macroeconomic stability; Managing Global Mega Trends and Improving governance," he said.

He also said that though India still had 200 million people below the poverty line, which was a matter of concern. He said that for progress, it would take all 600 million people. With 12 million youth entering the job market every year, it was only the manufacturing sector which could provide jobs of that scale and not the Agriculture, or services sector.

Subba Rao also said that all political parties were at fault for the plaguing problems, as they were going around subsidies. He cautioned that States and the Centre must realise that the country did not have surplus budgets and a safety net was needed. He said that they should be cautious and selective on what freebies to be given from borrowed money and that the future generations should not be burdened with debt.

President of FTCCI Anil Agarwal, said, "From a third world country, now India has become 6th largest economy of the world. From $ 82 per capita income in 1960 India has come a long way to the present $ 2,220 per capita income. Our country has found place in the top five nations in the field of science and space exploration which is indeed a proud moment. India is the leading producer of coal, steel, electricity and pharmaceuticals globally. India's GDP stood at Rs 2.7 lakh crore at Independence and 74 years on, it has reached Rs 135.13 lakh crore."

Chair IDC committee FTCCI Srinivas Garimella said, "Last 75 years of Indian journey has been satisfactory. We are on the right track after our contribution to world economy has come down to three percent from 25 percent before Independence during the 200 years of colonial rule. India might have missed the bus but expressed confidence that next 75 years is India's."

FTCCI released a booklet of compilation of Industrial growth strategy over the last 7.5 decades on the occasion of 75 years of Independence.