If India has to become a $5,000 billion economy, then 5-6 per cent growth cannot be happy- Rajnish Kumar

The former chairman of SBI said, to become a $ 5 trillion economy by 2025, there is a need to increase the economic growth rate to more than 8 percent.

For growth of 8 per cent and above, there is a need for large scale investment in the economy.

The country needs to increase the economic growth rate to more than 8 percent to become a $ 5 trillion economy by 2025. Rajnish Kumar, former chairman of State Bank of India (SBI), said this. He said in an online program organized by the industry body IMC Chamber of Commerce, “If India has to become a $ 5 trillion economy, then of course we cannot be happy with 5-6 per cent growth.” We need more than 8 per cent growth.

Kumar said that for growth of 8 per cent and above, there is a need for large-scale investment in the economy. Also, a low rate of tax is needed so that money is left in the hands of the companies along with the people. Apart from this, there is a need to increase the ease of doing business at the lower level and ease the land availability.

We need massive investment in manufacturing, agriculture and infrastructure sectors, he said. We all cannot completely depend on the government for capital. Kumar said that the government has rationalized the company tax rates and no one should have any complaint about it.

He also said that despite reforms in various sectors, the Gross Domestic Product (GDP) investment ratio has not improved.

Issues arise because of bureaucracy

He also said that despite reforms in various sectors, the GDP (Gross Domestic Product)-Investment ratio has not improved. Kumar said that there is a desire to take tough decisions and concrete reforms at the central government level, but when it comes to its implementation, issues arise because of bureaucracy.

He also said that though the country’s ranking has improved in terms of ease of doing business, there is still a problem in getting approval to set up new units at the district level.

The problem of starting a business at the district level continues

He also said that though the country’s ranking has improved in terms of ease of doing business, there is still a problem in getting approval to set up new units at the district level. “If today you or I want to set up a new unit in any district of our country, I am telling you that it will be a sad experience,” he said. When you go to the district level bureaucracy and want to start an enterprise, the ease of doing business will disappear.

Kumar further said that as far as the banking sector is concerned, there are issues of risk management and pricing of risks. He said that the environment and ecosystem around infrastructure is such that if a bank pays for the risk of funding infrastructure, it will not be able to lend more than 16-17 per cent.

Kumar said due to the unpredictable policy environment in the country, where policy changes can be made overnight by the government or state governments or local or judicial authorities, banks find it difficult to value the risks of funding projects.

Also read- Retail investors’ participation in government securities will increase, RBI notifies retail director scheme