Prime Minister Narendra Modi on Wednesday took the stage and presented his version of the current economic status of India. “Growth has taken the right direction.” Said the PM” but some economists can’t see the writing on the wall.”
A reply from the PM was due as a bleak narrative of India’s present economic status has started shaping up after RBI released figures on Demonetisation and growth—-99% scraped money returned to banks and GDP dipped to 5.7%.
Narendra Modi responded during his address to a gathering in an ICSI function in New Delhi. And he did iit the way he is the master in. He said that there are some economists who are spreading negativity.”it is time for the nation to think” said modi,” if some economists are serving the interest of the country or the political interest of someone else. ”
I want to assure you that the steps taken by the government will position the country in a new league of development, said modi and picked the whole gamut of questions— starting from Demonetisation to GST to Growth, to answer.
The PM said that his government has strengthened the institutional honesty in the country.The new age of honesty in the economy of India has started after demonetisation. That is the factor by virtue of which, Modi remarked, India’s economy is doing with less cash. After demonetisation the cash to GDP ratio has come down to 9% against more than 12% it was before demonetisation.two lakh ten thousand shell companies of the 3lakh caught after demonetisation has been scrapped, he said.
Prime Minister Modi acknowledged the dip in GDP to 5.7% in the second quarter of this finance year as a concern and asserted that his government is committed to and capable of reversing the trend. He said that the RBI has predicted growth of 7.7% in the fourth quarter.At the same time, he disapproved the brouhaha being created around the instant growth trend. “Some people relish in spreading despair. For them” said the PM,” drop of growth in a quarter is a big news.”
He recounted 8 times when the growth rate had dropped under 5.7% in six years of UPA regime. Instances of 1.5% and 0.2% were also there not long ago, said Modi and added that being associated with high inflation rate, high fiscal deficit and high Current account deficit that trend was more dangerous.
These parameters have been corrected now, said the PM adding, inflation has come down to 2.5% from 10%. Current defecit is around 1% now against it was 4% before and fiscal is under control at 3%.
He assured that if a sector-MSME, Export or in non-formal economy , needs immediate help due to structural reforms government is ready to provide that.if needed , the PM said, the government will not hesitate to bring about changes and corrections in the GST system for the interest of the small businessmen and the country.
Through a series of power point presentations PM Modi showed that there is remarkable growth in demand in urban, rural and FMCG sector to note that people has gained confidence and they have the feeling that the economy is strong.