Modi: India is doing better in last 17 months

GDP up, graft down, reforms inclusive: PM

Prime Minister Narendra Modi said on Friday that key economic indicators — like GDP, inflation, FDI, fiscal deficit and current account deficit — had improved quite significantly in the 17 months since the NDA government came to power. Dismissing criticism on the lack of big-bang reforms, Mr Modi said the economic reforms had to be for “sabka vikas” (development for all), and not just for “better headlines in the pink papers”.

He said the NDA government had brought corruption down, which “even our worst critics do not dispute”, and if the government could sustain this improvement in transparency, “what can be a more transformative reform ”

“By almost every major economic indicator, India is doing better than when we took office 17 months ago. GDP growth is up and inflation down. Foreign investment is up and the current account deficit is down. Revenues are up and interest rates are down. The fiscal deficit is down and the rupee is stable,” the PM said addressing a gathering of economists at the 6th Delhi Economics Conclave.

He said that this didn’t happen by accident. “This success is the result of a series of well thought-out policies,” Mr Modi went on to add. In what appeared to be an answer to critics who alleged a lack of big-bang reforms in the past 17 months, the PM said the NDA government’s reforms were far broader, and far deeper, than was generally recognised.

“My appeal to all of you is to think beyond conventional remedies. We should not limit our idea of reforms to a few standard notions,” said Mr Modi. The Prime Minister asked if the aim of government should be to impress experts and score points in some intellectual discussions. “Or to achieve ranks in some international league table Again, my answer is clear... Reform is that which helps all citizens, and especially the poor, achieve a better life. It is Sabka Saath, Sabka Vikas,” the PM said, adding that “reforming to transform is a marathon, not a sprint”.

Mr Modi listed Jan Dhan Yojana, Pradhan Mantri Mudra Yojana, new social security schemes, the soil health card, the housing for all programme and the Universal Account Number for employees among the reforms launched to bring the poor into the economic mainstream and to bring about a transformation.

He pointed out changes in interest rates were debated for months and tonnes of newsprint and hours of television were spent on it. “But are they important to a person locked out of the banking system To a person who has no prospect of ever lending or borrowing from a bank ” he asked. The PM said the NDA government, through the Jan Dhan Yojana, had brought 190 million people into the banking system. “Accounts opened under the Jan Dhan Yojana today have a total balance of almost '26,000 crores, or nearly $4 billion. Clearly our financial inclusion reform has been transformational. And yet this quiet revolution has hardly been noticed,” said Mr Modi

The PM said there was a “poverty alleviation industry” in the country. “Empowering the poor is far more effective than empowering the poverty alleviation industry. Our financial reforms empower the poor to fight poverty themselves,” he said.

Mr Modi said the NDA government had brought down the level of corruption. “A new process for appointments is being put in place under the Bank Boards Bureau. Credible and capable bankers have been appointed to head banks,” said the PM. He said the NDA government had removed discretion in the allocation of key resources and had successfully held auctions of coal, spectrum and FM radio licences. “Interviews for lower-level government jobs have been widely seen as a source of corruption. We recently abolished interviews for lower-level posts. We will rely on transparent written exams to decide who will be selected,” said Mr Modi.

He said over Rs10,500 crores of black money from overseas had been detected and assessed. He added: “If we can sustain this improvement in integrity and transparency, what can be a more transformative reform ”