BANGALORE: “The policy-making bodies of the country should aim to achieve 8 per cent growth in the future to transform India from a low income country to middle income country by the year 2025,” said Dr C Rangarajan, chairman of Economic Advisory Council to the Prime Minister of India.Addressing students of Kristu Jayanti College on the topic ‘The Current Economic Scene’ here on Tuesday, he said, “India has the potential to achieve growth rate of 8 per cent per annum. The current dip in Gross Domestic Product (GDP) rate is solely the impact of the international financial crisis,” said Dr Rangarajan. The former Governor of Reserve Bank of India (RBI) added that factors like inadequate investment in infrastructure and the turbulent events that shook the nation over the past year had contributed to the situation. Dr Rangarajan estimated that in spite of the present situation, India has the potential for good growth. “With a savings rate of 34 per cent and investment rate of 36 per cent and incremental capital output ratio of 4:1, the Indian economy is expected to achieve 9 per cent growth rate during the year 2011-12,” the former RBI Governor said. “We should find solutions to eradicate poverty to grow fast. We have to employ the technique of convergence of growth of the states,” said the former Indian Institute of Management - Ahmedabad professor.
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