Don't get gloomy over one quarter of slow growth: PM
Narendra Modi, speaking at Institute of Company Secretaries of India's golden jubilee celebration, launched a tirade against "people who sleep well only after they spread a feeling of pessimism all around." His justification of the NDA government's economic policies comes at a time when demonetization and GST preparedness are being criticized from all quarters, including some its own party members. Here's more.
Speaking about recent critics
Retaliating to the accusations of senior BJP leaders Yashwant Sinha and Arun Shourie, Modi said, "During six years of the previous government there were 8 instances when GDP was at or below 5.7%." PM also said that the government has worked tirelessly to reduce people's reliance on cash transactions. Post-demonetization, cash to GDP ratio fell to 9%, whereas, prior demonetization, it hovered at 12%.
RBI's policy meet
Incidentally, Modi's statements come on a day when the apex bank of India, post its policy review meet, has kept the repo rate unchanged at 6% but lowered its GVA (gross value added) growth forecast for 2017-18 to 6.7% from the previous 7.3%. Modi said that RBI has predicted a 7.7% growth for the coming quarter, which would balance the low numbers of April-June.
Taking a jab at the naysayers
Lambasting the economists, who had criticized the government's GST move, while going through an economic slowdown, Modi said, once India was a part of the fragile five countries i.e. economies dependent on FDIs for growth. Economists, who are blaming the government, should first answer why India was a part of such a group in the past when it had such good economists, said Modi.
Taking the necessary steps
Prime Minister Modi said that the present government fully comprehends the value of its citizens' hard-earned money and its policies and schemes are directed towards uplifting the livelihoods of the poor and middle class. The government has taken certain important decisions in terms of reforms and it'll be an ongoing process. Centre will take necessary steps to stimulate investment and spur economic growth.
Not averse to criticism
Working on solving GST hiccups
PM said that GST Council will review problems that are being faced by traders and the Centre will make changes, based on its recommendations. Modi urged the Company Secretaries to ensure that India becomes a tech compliant society by 2022 and also to ensure a complete abolition of shell firms. Modi said, "I'll not let the present problems jeopardize the future of the country."
