 "Modi sticks to guns on note ban, says won't shy away from tough decisions")
Addressing concerns over the demonetisation drive, Prime Minister Narendra Modi said on Saturday that his government will not shy away from taking difficult economic decisions if they bring long term gains.
"Let me make one thing very clear: This Government will continue to follow sound and prudent economic policies, to ensure that India has a bright future in the long run. We will not take decisions for short term political point scoring. We will not shy away from taking difficult decisions, if those decisions are in the interest of the country. Demonetisation is an example. It has short-term pain but will bring long-term gains," Modi said during the inauguration of the National Institute of Securities Management -- Sebi's new campus in Maharashtra's Raigad district.
Hinting that regulating the financial markets will be his next target, Modi said, "Financial markets can play an important role in the modern economy. They help in mobilising savings. They channel the savings towards productive investments. History has shown that financial markets can also do damage, if not properly regulated. It is to ensure good regulation that the Securities and Exchange Board of India (Sebi) was established by the government. Sebi also has a role to promote the development of healthy securities markets."
Modi added that the markets must provide benefits to farmers. "The true measure of success is the impact in villages, not the impact in Dalal Street or Lutyens’ Delhi. By that yardstick, we have a long way to go."
The Modi-led government has been at the receiving end of some strong criticism from the Opposition, particularly from Congress Vice President Rahul Gandhi, over the discontinuation 500- and 1,000- rupee notes. The Opposition has been united in charging the government with faulty implementation of the note ban, claiming that it has taken a toll on the poor while having a marginal impact on the corrupt. While Gandhi even went to the extent of accusing the PM of corruption, former finance minister P Chidambaram drew parallels between demonetisation and Indira Gandhi's emnergency
The BJP, however, claim that its significant gains and victories in recent civic and by-elections in several states stand testimony to the support for these tough measures against corruption. It says the people realise that the hardships will end soon, and that there will be huge gains for the econonmy and the poor in the long run.
"Let me make one thing very clear: This Government will continue to follow sound and prudent economic policies, to ensure that India has a bright future in the long run. We will not take decisions for short term political point scoring. We will not shy away from taking difficult decisions, if those decisions are in the interest of the country. Demonetisation is an example. It has short-term pain but will bring long-term gains," Modi said during the inauguration of the National Institute of Securities Management -- Sebi's new campus in Maharashtra's Raigad district.
Hinting that regulating the financial markets will be his next target, Modi said, "Financial markets can play an important role in the modern economy. They help in mobilising savings. They channel the savings towards productive investments. History has shown that financial markets can also do damage, if not properly regulated. It is to ensure good regulation that the Securities and Exchange Board of India (Sebi) was established by the government. Sebi also has a role to promote the development of healthy securities markets."
Modi added that the markets must provide benefits to farmers. "The true measure of success is the impact in villages, not the impact in Dalal Street or Lutyens’ Delhi. By that yardstick, we have a long way to go."
The Modi-led government has been at the receiving end of some strong criticism from the Opposition, particularly from Congress Vice President Rahul Gandhi, over the discontinuation 500- and 1,000- rupee notes. The Opposition has been united in charging the government with faulty implementation of the note ban, claiming that it has taken a toll on the poor while having a marginal impact on the corrupt. While Gandhi even went to the extent of accusing the PM of corruption, former finance minister P Chidambaram drew parallels between demonetisation and Indira Gandhi's emnergency
The BJP, however, claim that its significant gains and victories in recent civic and by-elections in several states stand testimony to the support for these tough measures against corruption. It says the people realise that the hardships will end soon, and that there will be huge gains for the econonmy and the poor in the long run.