Undeterred by crisis, PM says India will definitely get back its growth

Assures India Inc. of further reforms, seeks industry suggestions on sectoral needs

After India’s economic growth crashed to a 69-quarter low of 3.1 per cent in the three-month period ended fourth March 31, 2020, Prime Minister Narendra Modi on Tuesday asserted that the country will definitely get back its growth and promised that his government will take further reforms with the help of inputs provided by industry.

Modi urged the industry to come up with detailed studies on each sector of the Indian economy. “We will together take up large structural reforms that will change the course of our country,” he said at the 125th annual general meeting of the Confederation of Indian Industry (CII).

He said coronavirus may have applied the brakes on economic growth, but the country has left behind the phase of lockdown and entered phase-1 of unlocking.

A large part of the economy has been opened under unlock phase-1,  the prime minister said, adding more areas will be opened on June 8.

“This means the process of getting growth back has been initiated," Modi said.

The home ministry on Saturday said 'Unlock-1' will be initiated in the country on June 8 under which the nationwide lockdown that has been in place since March 25 will be relaxed to a great extent. The initiatives would include the opening of shopping malls, restaurants and religious places. However, strict restrictions will remain in place till June 30 in containment zones.

The prime minister’s comments came even as various analysts have predicted contraction up to seven per cent in India’s economy in the current financial year.  Economic growth was at an eleven-year low of 4.2 per cent during 2019-20, reminding people of the global financial crisis of 2008-09 which, however, delivered a lower growth rate of 3.1 per cent.

The prime minister, in fact, tackled this issue as well. 

“Some of you may ask me why am I so confident in this hour of crisis.  I have many reasons to be confident. I have confidence in the capabilities of India and her crisis management.  I have confidence in India’s talent and technology.  I have confidence in India’s intellect and innovation. I have confidence in India’s farmers, MSMEs, entrepreneurs.  I have confidence in industry leaders, you all,” he told industry members.

He asked India Inc to help 'Make in India' products go global to generate employment opportunities and reduce the import bill.

“You have to set targets to achieve this goal,” he urged industry.

In this regard, he said work on furniture, air conditioners and leather and footwear has been initiated.  He pointed out that India imports 30 per cent of its requirements in air conditioners.

The prime minister said while it is essential to save lives of the countrymen from coronavirus, it is also important to have economic stability.

He pointed out that large parts of India’s economy have been opened for the private sector and it is being allowed in other areas too.

Modi said making the economy strong is one of the foremost priorities of his government, saying the decisions of immediate needs and also those which will benefit the economy, in the long run, were taken recently.  

While the poor have been given benefits, the government has also created an eco-system for encouraging private enterprises.

He said non-strategic sectors where the private sector was not allowed earlier are being opened for India Inc. He cited the opening up of various segments of the coal sector such as commercial coal mining for the private sector. He wondered that India imports a huge quantity of coal despite having the third-largest stocks in the country.

“These decisions will have far-reaching repercussions.  Industry and the youth will get opportunities in various sectors such as mining, energy, research and technology. Opportunities are being created for private investments in strategic sectors as well, be it atomic energy or space,” he said.

Stating that his policy to make India self-reliant banks on five Is --intent, inclusion, innovation, infrastructures and investments--  he said many sectors are being prepared to be ready for the future growth.

“India is ready to leapfrog for high future growth,” the prime minister said.

He reiterated that Atmanirbhar Bharat or self-reliant India means that the economy will be fully integrated with the global supply chain as well be supportive of it. However, it  would not be dependent on others for strategic sectors, he emphasized.

“It is about creating strong enterprises, that can become global forces, in India,” he clarified.

He said reforms for his government mean taking bold decisions and take them to the logical conclusion.  “We have emphasized on reducing the government control and creating eco-system for encouraging private enterprises , be it decision on Insolvency and Bankruptcy Code or that on bank mergers or the goods and services tax or faceless income tax assessment, “ he pointed out.

His government has taken such strong decisions that have long been forgotten and about which the countrymen have lost all hopes.

He cited reforms being taken to allow farmers to sell his produce anywhere in the country and proposed labour reforms in this regard.

The prime minister also cited the reforms undertaken to encourage micro small and medium enterprises (MSMEs) including expanding its definition and prohibiting global tender for government purchases up to Rs 200 crore.

”The policy of self-reliance will provide fuel to the engine of MSMEs,” he said.

He said the entire world is looking for a talented, reliable partnership with India and urged the industry to take full use of it.

Modi assured India Inc. of helping them whenever there is need. “Aap do kadam uthayenge hum chaar kadam uthayenge (you take two steps and we will take four steps),” he said.