Prime Minister Narendra Modi said India’s economic growth is a “natural by-product” of his nine-year-old government’s political stability, and expressed optimism that it will be a developed country by 2047 plagued by “corruption, sectarianism and sectarianism.” It has no place in our national life
In an exclusive interview with PTI late last week, the Prime Minister also stressed the need for clear and timely communication on the policy stance by central banks, and the policy measures taken by each country in its fight against inflation so that it can prevent negative repercussions on others. countries.
While most advanced economies are facing economic slowdown, chronic shortages, high inflation and aging populations, the Indian economy is known to be the fastest growing large economy with the largest youth population.
“For a long period of world history, India was one of the best economies in the world. Later, due to the impact of colonialism of various kinds, our global footprint shrank,” he said.
“But India is now on the rise again. The speed with which we have jumped five places, from the tenth largest economy to the fifth largest economy in less than a decade, has demonstrated the fact that India means business,” he noted.
Adding a fourth ‘D’ – development – to the three dimensions of democracy, demography and diversity, he said the period up to 2047 is a time of tremendous opportunity and “Indians living in this era have a great opportunity to lay a foundation for growth that will be remembered for thousands of years to come.”
India’s GDP of US$3.39 trillion surpassed that of the United Kingdom in the fiscal year ending March 31, 2022, making it the world’s fifth-largest economy after the United States, China, Japan and Germany.
Modi said that in the three decades leading up to 2014, the country had witnessed many governments that were unstable and, therefore, unable to accomplish much.
“But in the last few years, the people have given a decisive mandate [to BJP]”This stability is the reason behind the introduction of many reforms over the past nine years,” he said.
These reforms, related to the economy, education, financial sector, banking, digitalization, welfare, inclusion and social sector, have laid a strong foundation, and “growth is a natural by-product,” he said. India’s rapid and sustained progress has aroused interest across the world, and many countries have been “watching our growth story closely”.
“They are convinced that this progress is not a coincidence but is occurring as a result of a clear, action-oriented roadmap under the title ‘Reform, Performance and Transformation,'” he added.
“For a long time, India was seen as a nation of over a billion hungry stomachs. But now, India is seen as a nation of over a billion ambitious minds, over two billion skilled hands, and hundreds of millions of youth,” he said.
He noted that India is home to more than 100 unicorns, is the third largest hub for startups, and the achievements of the space sector are celebrated across the world. India is also breaking all previous records in almost every global sporting event and more universities are entering the top of the world rankings year after year, he added.
“With this momentum, I am confident that we will be among the top three economies in the near future,” he said. “By 2047, I am sure our country will be among the developed countries.”
Modi said that as a developed country, the Indian economy will be more inclusive and innovative, the poor will comprehensively win the battle against poverty, and the country’s health, education and social sector outcomes will be among the best in the world.
He said: “Corruption, sectarianism and sectarianism will have no place in our national life.”
“The quality of life of our people will be on par with the best countries in the world. Most importantly, we will achieve all this while paying attention to nature and culture,” he said.
EY expects India’s GDP to exceed US$5 trillion by 2028, surpassing both Japan and Germany. But the US economy is expected to remain about six times larger than the Indian economy.
The Prime Minister said that inflation is a major issue facing the world.
“Our G20 presidency engaged G20 finance ministers and central bank governors. It was recognized that communicating their policy positions clearly and in a timely manner to central banks is crucial. This can ensure that the policies each country takes to combat inflation do not lead to positive outcomes.” lead to negative repercussions in other countries.”
The Organization for Economic Co-operation and Development (OECD) targets proposals to reduce incentives for tax planning and avoidance by reducing tax competition and changing where companies pay taxes. The first pillar of the OECD proposal expands a state’s power to tax profits from companies that make sales in their country but do not have a physical location there.
“This agreement will allow countries and jurisdictions to move forward with the major historic reform of the international tax system,” Modi said. “As you can see, there is significant progress on many issues. This is also a result of the confidence shown by other partner countries in India’s presidency.”
In a recent report, Morgan Stanley described the nine years of the Modi government as transformational, and listed bringing corporate tax on par with peers, increasing the pace of infrastructure investment, increasing GST collections, and increasing the share of digital transactions as a proportion of GDP as key initiatives.