PM Modi says stable government with decisive mandate reason for reforms

With key state elections round the corner, the Prime Minister also rekindled the debate on the culture of freebies – he had in October last year slammed it as “revdi culture” – saying “financially irresponsible policies and populism may give political results in the short term but will extract a great social and economic price in the long term.”

Asserting that India’s G20 Presidency has sowed the seeds of confidence in the countries of the “so-called” ‘Third World’, Prime Minister Modi also said that international institutions need to recognize changing realities, expand their decision-making forums, relook at their priorities and ensure representation of voices that matter.

With just days to go for the G20 Heads of State and Government Summit in Delhi, the Prime Minister also pointed out that the GDP-centric view of the world is now changing to a human-centric one. “Like a new world order was seen after World War 2, a new world order is taking shape post-COVID. The parameters of influence and impact are changing and this needs to be recognized,” he said.

The ‘Sabka Saath Sabka Vikas’ model of his government, he said, has shown India can also be a guiding principle for the welfare of the world.

The Prime Minister said the “decisive mandate” that the electorate had given in 2014 and 2019 ensured that there is a stable government, predictable policies and clarity in the overall direction.

“In the 3 decades before 2014, our country saw many governments that were unstable and therefore, unable to get much done. But in the last few years, the people have given a decisive mandate, which has led to a stable government, predictable policies and clarity in the overall direction,” he said.

“This stability is the reason that over the past nine years, several reforms were brought in. These reforms, related to the economy, education, financial sector, banks, digitalization, welfare, inclusion and social sector, have laid a strong foundation and growth is a natural by-product. The rapid and sustained progress made by India naturally evoked interest across the world and many countries have been watching our growth story very closely. They are convinced that this progress is not an accident but is happening as a result of a clear, action-oriented roadmap of ‘Reform, Perform, Transform’,” the Prime Minister said.

Modi said India was perceived for a long time as a nation of over 1 billion hungry stomachs.

“But now, India is being seen as a nation of over 1 billion aspirational minds, more than 2 billion skilled hands, and hundreds of millions of young people. We are not only the most populous country in the world but also the nation with the largest youth population. So, perspectives about India have changed,” he said.

Replying to a question on whether he was expecting any consensus at the G-20 summit on the challenge of debt restructuring, which has become a problem for the global South, he said “the debt crisis is indeed a matter of great concern for the world, especially developing countries. Citizens from different countries are keenly following the decisions being taken by governments in this regard.”

“There are some appreciable results too. First, countries that are going through a debt crisis or have gone through it, have begun to give greater importance to financial discipline. Second, others who have seen some countries facing tough times due to the debt crisis are conscious of avoiding the same missteps. You are well aware that I have urged our state governments to be conscious about financial discipline as well.”

“Whether it is in the National Conference of Chief Secretaries or any such platform, I have said that financially irresponsible policies and populism may give political results in the short term but will extract a great social and economic price in the long term. Those who suffer those consequences the most are often the poorest and the most vulnerable,” he said.

India’s G20 Presidency, he said, has placed a significant emphasis on addressing the global challenges posed by debt vulnerabilities, especially for nations in the Global South. “G20 Finance Ministers and Central Bank Governors have acknowledged the good progress in debt treatment of Common Framework countries and beyond the Common Framework too. We have also been greatly sensitive to the needs of our valued neighbour, Sri Lanka, during their tough times,” he said.

“To accelerate global debt restructuring efforts, the Global Sovereign Debt Roundtable, a joint initiative of the IMF, World Bank and the G20 Presidency was launched earlier this year. This will strengthen communication among key stakeholders and facilitate effective debt treatment. While a lot is being done to address these issues, as I said earlier, I am positive that rising awareness among the people of different countries will ensure that such situations don’t recur often,” he said.

Replying to questions on India’s G-20 presidency, he said the Covid pandemic had made the world realise that in addition to the economic challenges, there were also other important and immediate challenges impacting humanity.

“By this time, the world was already taking note of India’s human-centric model of development. Whether it was economic growth, technological progress, institutional delivery or social infrastructure, they were all being taken to the last mile, ensuring none was left behind. There was greater awareness of these massive strides being taken by India. It was acknowledged that the country which used to be seen just as a large market had become a part of the solutions to the global challenges,” he said.

“Looking at India’s experience, it was recognized that a human-centric approach works even during a crisis. India’s response to the pandemic through a clear and coordinated approach, direct assistance to the most vulnerable using technology, coming up with vaccines and running the world’s largest vaccine drive, and sharing medicines and vaccines with nearly 150 countries – were noted and well appreciated.”

“By the time India became the president of G20, our words and vision for the world were not being taken merely as ideas but as a roadmap for the future. Before we complete our G20 Presidency, over 1 lakh delegates will have visited India. They have been going to different regions, witnessing our demography, democracy and diversity. They are also seeing how a fourth D, development, has been empowering the people over the last decade. There is a growing understanding that many of the solutions that the world needs are already being successfully implemented in our country, with speed and scale,” he said.

He said India’s G20 Presidency has also sowed the seeds of confidence in the countries of the so-called ‘Third World’.

“They are gaining greater confidence to shape the direction of the world in the coming years on many issues such as climate change and global institutional reforms. We will move faster towards a more representative and inclusive order where every voice is heard. Further, all this will happen with the cooperation of the developed countries, because today, they are acknowledging the potential of the Global South more than ever before and recognizing the aspirations of these countries as a force for the global good,” he said.

He said a GDP-centric view of the world is now changing to a human-centric one.

“Like a new world order was seen after World War 2, a new world order is taking shape post-COVID. The parameters of influence and impact are changing and this needs to be recognized. The ‘Sabka Saath Sabka Vikas’ model that has shown the way in India can also be a guiding principle for the welfare of the world. Irrespective of the size of the GDP, every voice matters,” he said.

Modi also responded to a question on whether the G-20 can become a platform to reinvent multilateral institutions to make them more relevant to today’s challenges and give India its rightful place in the global order given the fact that the UN seems to be failing to resolve most pressing issues facing the world

“Today’s world is a multipolar world where institutions are extremely important for a rules-based order that is fair and sensitive to all concerns. However, institutions can retain relevance only when they change with the times. A mid-20th century approach cannot serve the world in the 21st century. So, our international institutions need to recognize changing realities, expand their decision-making forums, relook at their priorities and ensure representation of voices that matter. When this is not done on time, then smaller or regional forums begin to attain more importance. The G20 is certainly one of the institutions that is being looked at with hope by many countries. Because the world is looking for actions and outcomes, no matter where they come from,” he said.

“The G20 has provided a platform for India to further its human-centric vision and also collaboratively work towards innovative solutions to problems that are faced by humanity as a whole,” he said.

Modi said his government’s decision to hold G-20 related meetings in states across the country was a well thought out strategy.

“India, across its various states, union territories and cities has so much potential to welcome, host and connect with the world. Unfortunately, in the past, there used to be an attitude of getting things done right here in Delhi, in and around Vigyan Bhavan. Perhaps because it was an easy way out. Or perhaps because those in power lacked confidence in the people of different parts of the country to successfully execute plans of such scale,” he said.

Asserting that his government trusted the people of every region, he said his government had consciously decided to hold high-profile summits in different parts of the country.

“The 8th BRICS Summit happened in Goa. The 2nd FIPIC summit involving many Pacific Island nations happened in Jaipur. The Global Entrepreneurship Summit happened in Hyderabad. Similarly, we ensured that many foreign leaders who visited our country were hosted at various places across the country rather than just in Delhi. The same approach is continuing in G20 too, at a larger scale,” he said.

“By the time our G20 Presidency term ends, over 220 meetings would have happened across 60 cities in all 28 states and 8 union territories. Over 1 lakh participants from around 125 nationalities would have witnessed the skills of Indians. Over 1.5 crore people in our country have been involved in these programmes or have come in touch with some aspects of them…. This is also giving the world an idea of India’s incredible diversity,” he said.

“I have also appealed to various states during the Chief Ministers meeting that they should ensure that each state continues to strengthen its relationship with the delegates who visited them during G20 and their countries. This will also open up a lot of opportunities for the people in future. So, there is a deeper plan behind the decentralization of the activities related to G20. We are investing in capacity building in our people, our institutions and our cities,” he said.