Former RBI governor Raghuram Rajan attributes India's robust GDP growth to global economic performance and significant government spending on infrastructure. Despite the country's strong growth rate, private investment and consumption remain sluggish.
Rajan highlights that India needs faster growth to generate sufficient jobs and catch up with its pre-pandemic trendline. He questions the feasibility of achieving the $5 trillion economy goal by 2025, emphasizing the necessity of a 12-15% real growth rate, which seems implausible without a detailed growth plan. Rajan advocates for transparent discussions and involving economists in formulating strategies to accelerate economic growth.