PM Modi Accuses His Detractors Of Spreading Pessimism

October 5th, 2017 | by eBangla Bureau
PM Modi Accuses His Detractors Of Spreading Pessimism


PRIME Minister Narendra Modi, who is being accused by his political opponents for economic slowdown post demonetization and GST, has strongly defended the measures as part of economic reforms. This government does not function  for winning voters but in their long term interest and reminded his critics that the GDP  growth came down to below 5.7 for as many as six quarters during ten-year  regime of Congress headed UPA till 2014, he added.

Lashing out at his detractors without naming them PM on Wednesday said the structural reform will continue while steps will be taken to reverse the GDP slowdown. The Indian economy is on firm footing and he will never jeopardise the country’s future for the present gains, he added. Quoting  high consumption figures in several areas of economy, especially growing auto sale figures, impressive inflow of FDI, and rising air traffic, he emphasised that consumption has not slowed down and the economy was moving in the right direction.“I will not jeopardise the future of the country for my present gains.” The Government will remain focused on structural reforms rather than giving doles to win praises, he added in an hour-long speech to Company Secretaries. PM Modi said his critics see slowdown in the last two quarters but were ignoring that the fact that the NDA Government had brought down inflation from 10 per cent in the UPA regime to 2.5 per cent, shrunk Current Account Deficit to near 1 per cent from 4 per cent, and brought down fiscal deficit to 3.5 per cent from 4.5 per cent. Drawing comparison with the UPA regime, the PM said GDP growth was 5.7 per cent or less than that on eight occasions during previous UPA Government and took a jibe at the “pessimists” for calling the April-June growth of 5.7 per cent as “doomsday.”

“The Government is committed to reverse this trend…We are capable of that and ready to take decisions,” said Modi, adding the decisions taken by the Government will take India to a new growth trajectory. The PM reminded his critics that of a time when India was part of ‘fragile-5’ economy growth and the BJP Government pulled it out to make it the fastest growing economy for most part of its three-year rule. Speaking at length on  demonetisation, the PM said,  “ November 8 will be known in history as the first day of the war against corruption. It was this Government that had the courage to take the demonetisation decision.”After demonetisation cash to GDP ratio has become 9 per cent, down from 12 per cent before November 8, 2016. “Referring to concerns over implementation of the Goods and Services Tax (GST) regime, the PM said he has asked the GST Council to identify bottlenecks and technological hurdles faced by businesses especially small and medium enterprises. The Government is ready to make amends to help small traders. Modi said registration of 2.1 lakh out of 3 lakh suspected shell companies identified post note-ban has been cancelled in a crack down on the black money.PM Modi said the extent of FDI – foreign direct investment- in the three years since his Government took over. “Liberalisation began in 1992. But see what’s happened 2014-2017. Seventy-five per cent of FDI into construction came in those 3 years.“Fifty-six per cent FDI came in mining sector, 53 per cent of total FDI came into computer software and hardware,  and  49 per cent of FDI into renewable energy,” said the PM, adding, “ Rising FDI inflows are proof that foreign investors trust the Indian economy, have faith in government’s policies and  most of all, our intent.”Rejecting the arguments that the demonetisation and GST have broken the backbone of the economy, the PM said,  “Since June, commercial vehicle sales up 23 per cent and passenger vehicles up 12 per cent, two-wheeler sales up over 14 per cent. What would you say to that?”India’s domestic air traffic went  up 14 per cent in last two months, Air freight volumes up 16 per cent, telephone subscribers up by over 14 per cent.“These indicators show an uptick in urban demand and in rural sector. This happens when people are confident,” he said. “Some people enjoy spreading pessimism; they sleep well at night after that. For those people, a dip in growth for one quarter becomes doom. Is it the first time growth fell to 5.7 per cent.”“There were six occasions under the previous Government when the growth rate fell to 5.7 per cent or lower.” There have been quarters when India’s growth rate was 0.2 per cent or 1 per cent. That was even more dangerous as it came with higher inflation and deficits.”In an apparent reference to ex-Finance Minister Yashwant Sinha, who said the real GDP growth was much lower than 5.7 per cent,   PM said “When CSO showed 7.4 per cent growth, the same people questioned it and said it doesn’t feel like that in ‘ground reality’. Over the last 2 quarters, when growth fell to 6.1 per cent and 5.7 per cent, these people started loving the data.”


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