Indian Economy
'Indian economy will struggle to achieve 5 percent growth next year': Raghuram Rajan to Rahul Gandhi
Former Reserve Bank of India (RBI) Governor Raghuram Rajan, who participated in Congress top leader Rahul Gandhi's Bharat Jodo Yatra a day ago, spoke on the country's economy post Covid-19 pandemic in a conversation with the Wayanad Lok Sabha MP.
Speaking to Gandhi, Rajan said, "We would be lucky if we do 5% next year. See the problem with the growth numbers is that you have to understand what you are measuring with respect to. If you had a terrible quarter last year and you are measuring with respect to that, you look very good."
"So ideally one looks at the figures before the pandemic in 2019 and now. And if one looks at 2022 vis-a-vis 2019, it's about 2 percent a year. That's too low for us," he added.
Throwing light on the economic divides, Rajan said, "So, this divide increased during the pandemic. Rich had no problem, the lower class got ration and other things but the lower middle class had a big damage. There were no jobs, unemployment increased."
The former RBI Governor also felt the country lacked reforms which are essential for growth.
Rajan, a critic of the Modi government's controversial demonetisation move, joined the yatra at Sawai Madhopur in the Congress ruled state on Wednesday.
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