Vowing to continue the reform-to-transform process and pursue policies that will enhance growth and further inclusion, Prime Minister Narendra Modi on Saturday said 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 and the country has also shown that a large diverse country can be managed in a way that can promote economic growth and maintain social stability,” he said while addressing a conference on Advancing Asia co-hosted by India and International Monetary Fund (IMF).
“We have never tried to gain in trade at the expense of our partners. We do not follow ‘beggar thy neighbour’ macroeconomic policies. We have never undervalued our exchange rate,” he added.
Among all reforms that the country needed for its economic growth, Modi also pitched for quota reforms at IMF to reflect global economic realities and give India and other emerging economies larger say in the working of multilateral bodies.
“The long-pending quota revisions agreed in 2010 have finally come into effect but even now, IMF quotas do not reflect the global economic realities,” Modi said, adding that change in quotas is not an issue of increasing the “power” of certain countries, it is an issue of fairness and legitimacy.
listing achievements in macroeconomic stability, he added that there has been a durable reduction in inflation, steady fiscal consolidation, a comfortable balance of payments and build-up of forex. 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, he 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.
Modi also said Budget 2016-17 provides a roadmap for future plans and ambitions. “Our underlying philosophy is clear: To create the climate for wealth generation and for that wealth to be spread to all Indians, especially the poor, vulnerable, farmers, and disadvantaged communities,” he said.