We will get our growth back, PM tells India Inc
There are many reasons for confidence. I have confidence in India’s capabilities and crisis management; in India’s talent and technology; in India’s innovation and intellect; in India’s farmers, MSMES and entrepreneurs
NARENDRA MODI, Prime Minister
NEW DELHI: Prime Minister Narendra Modi on Tuesday voiced confidence in the economy’s ability to return to a path of rapid growth, listing it among his government’s top priorities and pledging its commitment to systematic reforms amid concerns that the coronavirus disease (Covid-19) pandemic could plunge India into a prolonged slowdown.
“Yes! We will definitely get our growth back,” Modi said in his speech to a conference on ‘Getting Growth Back’ organised by the Confederation of Indian Industry (CII) to mark the organisation’s 125th anniversary, as India emerges from the Covid-19 outbreak and subsequent 68-day lockdown.
“Some of you may think in this time of crisis how could I say this with such confidence? There are many reasons for this confidence. I’ve confidence in India’s capabilities and crisis management. I’ve confidence in India’s talent and technology; I’ve confidence in India’s innovation and intellect. I’ve confidence in India’s farmers, MSMES [micro, small and medium enterprises] and entrepreneurs,” the Prime Minister said in Hindi through a video link.
Modi’s first major speech on the economy since the post-covid-19 lockdown began on March 25 came a day after Moody’s Investors Service cut India’s rating by one notch to the lowest investment grade with a negative outlook, citing growing risks that Asia’s third largest economy will face a prolonged period of slower growth.
According to official data released on Friday, the economy grew 3.1% in the three months ended March 31, 2020, and 4.2% — the slowest pace in 11 years — in the financial year 2019-20.
The prolonged nationwide lockdown in the aftermath of the Covid-19 pandemic is expected to dent growth further.
Moody’s said the lowering of India’s rating reflects its view that “the country’s policy making institutions will be challenged in enacting and implementing policies which effectively mitigate the risks of a sustained period of relatively low growth, significant further deterioration in the general government fiscal position and stress in the financial sector.”