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PM Modi counters economic slowdown critics, says growth rate hasn’t fallen to 5.7% for first time

Reiterating his praise for demonetisation, the Prime Minister said the cash to GDP ration has come down to 9 per cent after demonetisation and that it was 12 per cent before November 9, 2016. 

By: Express Web Desk | New Delhi | Updated: October 4, 2017 8:02 pm
Narendra Modi, Modi on economy, indian economy, modi at ICSI, modi at company secretaries, congress, demonetisation, GDP growth,  india news, indian express New Delhi: Prime Minister Narendra Modi (Source: PTI)

Prime Minister Narendra Modi on Wednesday acknowledged that the country’s growth rate had come down in April-June quarter but insisted that his government is committed to reverse the slide. “After achieving average growth of 7.5 per cent over 3 years, we accept that growth rates came down April-June but government is committed to reverse it,” PM Modi said while addressing company secretaries at inauguration of Golden Jubilee Year of the Institute of Company Secretaries (ICSI) in Delhi.

His comments came hours after the Reserve Bank of India (RBI) sharply revised its growth projection to 6.7 per cent for the current fiscal, from 7.3 per cent earlier, due to lower kharif foodgrain production and disruptions arising from the implementations of GST.

Hitting out at previous dispensation and economic slowdown critics, Prime Minister Modi said the country’s economy had witnessed a growth for three continuous years after the BJP formed the government at the Centre. “Dip in economic growth in one quarter has boosted pessimists; not first time growth has dipped to 5.7 per cent in any quarter,” he said.

Last month, data released by the Central Statistics Office showed that the economic growth slowed to 5.7 per cent in the first quarter of 2017-18 against 6.1 in the preceding quarter. This figures were sharply below market expectations and came on the back of large-scale destocking undertaken by manufacturers ahead of the GST rollout and the lingering impact of demonetisation.

Reiterating his praise for demonetisation, the Prime Minister said the cash to GDP ratio has come down to 9 per cent after demonetisation and that it was 12 per cent before November 9, 2016.

“GDP growth dipped to 5.7 per cent or below eight times during UPA regime when nation was faced with high inflation, CAD and fiscal deficit,” PM Modi said, adding that double digit inflation has come down to less than three per cent with current account deficit and fiscal deficit being brought down to 2.5 per cent and 3.5 per cent, respectively

Allaying fears of dwindling economic growth, PM Modi asserted that fundamentals of Indian economy remain strong and that the reform process will continue keeping financial stability in mind. “Decisions of the govt will take the country to the next league,” Modi said, referring to his government’s decisions of demonetisation and Goods and Services Tax (GST).

With critics mounting pressure on the present dispensation over the ‘hasty’ implementation of the indirect tax reform, Modi assured that he has directed GST Council to review bottlenecks, technological hindrances. “Government ready for changes to ease any bottlenecks in GST,” he said.

Defending his government’s decision to demonetise higher currency notes, Modi said, “The government very well understands the value of your hard earned money and our policies and schemes are focused at bettering life of poor and middle class.” The Prime Minister also vowed to not let the present difficulties jeopardize the future of the country.

With inputs from Agencies

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  1. G
    GR Mishra
    Oct 5, 2017 at 9:28 am
    Modiji, so low growth is your benchmark? And, you are forgetting the manipulations in the figures which are well known. 5.7 is actually much less, maybe below 4 . How many times has that happened? The figures speak for themselves. No one is misleading no one. People are not fools. You are disconnected from reality because you have lost touch with the people. You think that you can continue to win forever because your sycophants paint a rosy picture. Or, you have the Ram Mandir trump card for 2019!! People may get fooled again, but India will suffer. Accept your mistakes (e.g. demo) and learn from your mistakes. Every leader in history has made mistakes. Just because congress says something it does not mean it is wrong. Your own senior leaders are speaking. Economics is a very complicated art and science. Complacency can lead to recession. Anyway, many people have stopped believing in your jumlas.
    1. R
      Oct 5, 2017 at 1:44 am
      RBI Well-Prepared For All Eventualities........basic intelligence in play where the Govt., the RBI and the Stock-Markets are in absolute harmony with the each other....thanks to the resilience of Modi-Jaitley-UrijitPatel as a team that has been on the target of 'wilful skeptics' of NDA's revolutionary economic measures even at the cost of their(NDA's) own political-popularity but in great national interest of strengthening the economic foundations of the evolving New India. GDP falling for a little while will certainly not lead to any earthquake in the lives of crores of Indians who are continually benefiting from Modi's schemes like Aadhar, bank accounts, LPG, mudra, beti-bachao beti padhao, and many others in the "sab ka saath , sab ka vikas" mission sincerely pursued by Team Modi and translated into a hard-earned increasing popularity visibly in the increasing number of states people are giving it huge wins and thereby empowering it further to deliver a good and strong governance.
      1. S
        Oct 5, 2017 at 12:18 am
        Its Cash- GDP Ratio, not 'ration'. Can't The Indian Express ever avoid blaring typos on its own ? Despite this, it is claimed to be a national newspaper. A real pity.
        1. B
          Oct 4, 2017 at 11:30 pm
          haha real pappu. .. he does not know how to govern. his only quality was muslim bashing being a chaddi. that's why he came to power wuth communal votes. ppl who voted for him are not only stupid but sinner. he does not know abc of economy and can make fun of harvard as if they don't do hard work only chaiwalla do ! he himself had to admit of no knowledge about diplomacy. still he can make fun of person of stature of MMS, ansari and raJan. actually mother of all scams is how such a person could come to power. other lesser but very harmful scam are de-monetization and petrol diesel price hike to name a few. just to have an idea of petrol price hike scam.. crease of 1 rupee results in 1 billion usd revenue. just imagine how much it will be if u calculate for the time period 3.5 yrs and that too when crude prices have become one third !! The extent of all scams and damages done will only come out in future. one thing for sure, this damage becomes irreversible if he remains in powee.
          1. K
            Oct 4, 2017 at 10:28 pm
            If GOOD DAYS are not going to come, Mr. PM would, for sure, argue "Bad Days Are Not Here For The First Time"!!!!
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