Not Difficult To Get Growth Back, PM Modi Tells India Inc. At CII Event
A day after Moody’s downgrade, Modi says not difficult to get growth back.
Prime Minister Narendra Modi said it’s not difficult to get India’s growth back, and he has full confidence in the country’s capabilities and crisis management.
“Yes. We will definitely get our growth back…I have confidence in India’s innovation and intellect, its farmers, MSMEs, and entrepreneurs,” Modi said at the annual general meeting of industry body CII.
Modi was speaking the morning after Moody’s Investor Service downgraded India’s sovereign ratings not just because the Covid-19 pandemic has worsened economic conditions. The rating agency cited slow reform momentum, constrained policy effectiveness contributing to a prolonged period of slow growth compared to the nation’s potential for its action.
The prime minister, however, said the virus has slowed India’s speed but the country has left the lockdown behind and entered ‘Unlock Phase 1’.
The government’s highest priority is to re-strengthen India against the coronavirus, and it’s taking required steps immediately, Modi said, adding that these decisions will help the country in the long run.
To get India again on the path of faster development, and make it self-reliant, five things are necessary, Modi said. These are intent, inclusion, investment, infrastructure and innovation, and the “bold” steps recently taken by the government will give a glimpse of all these five things, he said.
Reforms is not a random decision for the current government, Modi said. “For us reforms are: having courage to take decisions, and taking them to a logical conclusion.”
Some priority sectors have been identified by the government, in consultation with the industry, which are furniture, air conditioner, leather and footwear, Modi said, adding that work has started on these three sectors.
He said India imports more than 30% of its demand only on air conditioners, which needs to be reduced. Despite being the second-largest producer of leather in the world, the country’s share in global exports is very less, he said.
Modi urged the industry to come up with a detailed study of every sector, and ‘think big’. “We will together take up all structural reforms that will change the course of our country.”