Prime Minister Narendra Modi on Saturday promised to stay on the “reform-to-transform” path to boost growth and help inclusion.
Prime Minister Narendra Modi on Saturday promised to stay on the “reform-to-transform” path to boost growth and help inclusion. At the same conference, “Advancing Asia: Investing for the Future”, International Monetary Fund chief Christine Lagarde said “India’s star shines bright” amid global economic challenges and that the country can deliver nearly two thirds of worldwide growth over the next four years despite a slowing momentum.
The Prime Minister underlined the fact that Indian economic growth is now the fastest among big economies in the world. “We have never tried to gain in trade at the expense of our partners. We do not follow the macroeconomic policies which say ‘beggar thy neighbour’. We have never undervalued our exchange rate,” Mr Modi said in an oblique reference to China’s attempts to devalue its currency to boost her economy.
The conference was co-hosted by India and the International Monetary Fund in the national capital.
“India is a haven of macroeconomic stability and a beacon of hope, dynamism and opportunity amid global problems. India has dispelled the myth that democracy and rapid economic growth cannot go together. India has also shown that a large, diverse country can be managed in a way that can promote economic growth and maintain social stability,” said the Prime Minister.
Prime Minister Narendra Modi, while listing achievements in macroeconomic stability, said there has been a durable reduction in inflation, steady fiscal consolidation, a comfortable balance of payments position and build-up of foreign exchange reserves. In a difficult external environment, and despite a second successive year of weak rainfall, India’s growth rate increased to 7.6 per cent, the highest among major economies. “All of us need to pursue policies that provide a stable macroeconomy, enhance growth and further inclusion,” he said.
Stating that economic governance has improved, Mr Modi said corruption and interference in the decisions of banks and regulators are now behind us. “We do not intend to rest on these achievements because my agenda of reform-to-transform still needs to be finished,” he said.
Appreciating the Indian reform process, IMF chief Christine Lagarde said the world’s fastest-growing large economy is on the verge of having the largest and youngest-ever work force and, in a decade, is set to become the world’s most populous country. “So, India stands at a crucial moment in its history — with an unprecedented opportunity for transformation. Important reforms are already under way,” she said, adding, “Think, for example, of Make-in-India and Digital India. And with the promise of even more reforms to come, India’s star shines bright.”
