In a strong rebuttal to those doubting India being the fastest growing major economy, Prime Minister Narendra Modi today reeled out statistics on credit growth and record FDI inflows to underscore that the economic success was the hard-won result of prudence, sound policy and effective management.
He said the government programmes are aimed at creating more employment as well as to carry out administrative and policy reforms for sustained growth.
“For India to be at the top of global growth tables is an unusual situation. Obviously, there are some who find that difficult to digest and come up with imaginative and fanciful ideas to belittle that achievement.
“The fact is that India’s economic success is the hard-won result of prudence, sound policy and effective management,” he said at the Bloomberg India Economic Forum.
Stating that India’s growth rate is acknowledged as the highest among major economies, he said, “There are some who remain confused and have said the growth rate does not ‘feel’ right. Perhaps I can be of some assistance to them in reducing the confusion, by stating facts in place of feelings.”
Reeling out statistics, he said there has been a smart pickup in credit growth after September. While credit off-take in the year to February increased by 11.5 per cent, overall fund flow to the corporate sector through equity and borrowings rose by over 30 per cent in the first three quarters of 2015-16.
Also, the trend of firms facing credit rating downgrade in 2013 and 2014 has been reversed and in the first half of fiscal year 2015-16, for every company getting a downgrade, there were more than two companies which received upgrades, the best level in recent years, he said.
“Net foreign direct investment in the third quarter of the current financial year was an all-time record,” he said highlighting increased overseas funds in fertiliser, sugar and agricultural machinery, sectors closely connected with rural economy.
Also, FDI in construction saw 316 per cent growth, while the same in software and hardware almost quadrupled.
“In a difficult global environment for exports, manufacturing output has fluctuated. However, several key sub-sectors of manufacturing are growing rapidly,” he said.
Modi said his government’s focus was on agriculture and doubling farm income by 2022. Also, his strategy is to optimise use of resources through efficient implementation.