‘Indian economy needs corrective steps for growth’

C Rangarajan, chairman of Prime Minister’s Economic Advisory Council, said India’s per capita income can reach $8,000-10,000 by 2025 if the economy grows at 9% annually.

At present, the per capita income is at $1,600 and growth rate 8.3%, he said. India, he said, will become one among the middle income group of countries if it achieves a per capita income of $10,000.

He was addressing the first annual convocation of the Indian Institute of Technology, Hyderabad (IIT-H) held near here on Friday.

He stressed the role of youths and entrepreneurs in making the country tread the growth path. “Technology can play vital role in enhancing productivity and production in every sector of the economy,” he said.

Addressing the students, he said that the country was facing a severe economic crisis with growth being slowed down and inflation being high.

The fiscal deficit is at a high level and steps should be taken to rectify it, he said.

He felt that youths should design innovative products and make their imagination a reality. This can be achieved in five stages -- imagining, incubation, demonstration, promoting and sustaining, he said.

He also stressed the role of universities in spreading the use of science and technology. The role of university teachers does not end in just producing engineers and sending them out. They should also mould their characters, he asserted.

In India, IITs are outstanding centres for research and technological education. They have a reputation in the world, he said and urged the students to become entrepreneurs but not be satisfied with the hefty pay packages.

IIT-H chairman Ajay Chowdary, director U B Desai and others also spoke.