India may become a USD five trillion economy by 2028-29 only if the GDP grows at nine per cent per annum consistently for the next five years, former RBI Governor D Subbarao said on Monday. Speaking at Federation of Telangana Chamber of Commerce and Industry on India @75- Marching Towards USD 5 Trillion Economy on the occasion of 75 years of Indian Independence.
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The Key Challenges:
He said there are eight key challenges for India to overcome to achieve the dream of 5 trillion economy. The challenges are increasing investment, improving productivity and education and health outcomes, creating jobs, raising agriculture productivity, maintaining macroeconomic stability, managing global mega trends and improving governance, it said. Subba Rao further said that PM Modi triggered a debate on State subsidies and all political parties are at fault for the situation.
Concerns About Freebies:
He cautioned that the States and union government must realise that, the country does not have surplus budgets and while some safety net is surely needed. They must be cautious and selective on what freebies to be given from borrowed money and the future generations should not be burdened with unnecessary debt burden.