MODI VOWS TO REVERSE ECONOMIC SLOWDOWN

Will not allow the pessimists to deter him

Lashing out at the critics of his economic policies, Prime Minister Narendra Modi on Wednesday said that Indian economy was on a firm footing and that he will never jeopardise the country's future for shortterm gains.

He refuted criticism of his government’s handling of the economy, stating that a "handful of people" are trying to spread a contagion of pessimism based on the slowdown in the last economic quarter, when the growth sputtered to 5.7 per cent, the lowest in three years.The government, he asserted, was not in a denial mode; growth had slid in the April-June quarter, but he was committed and capable" of reversing the setback and "ready to take decisions."

The Prime Minister said it was not the first time that GDP growth had declined to that level; during the previous Congress-led UPA regime, it was below 5.7 per cent eight times, he said, adding that, "There were quarters when growth was 0.2 per cent, 1.5 per cent." That decline, he said, was more dangerous for the economy, because in those years India was battling "higher inflation, higher current account deficit and higher fiscal deficit".

Modi made the comments days after senior BJP leader Yashwant Sinha in an article headlined "I need to speak up now", described the economy as a "mess" that will not resuscitate before the next general elections.

Addressing concerns over implementation of the Goods and Services Tax regime, the Prime Minister said, he has asked the GST Council to identify bottlenecks and technological hurdles faced by businesses, especially small and medium enterprises.

The government, he said, is ready to make amends to help small traders.

Modi also said registration of 2.1 lakh out of 3 lakh suspected shell companies identified post note-ban has been cancelled in a crackdown on black money. In the last three years, the Prime Minister said, his government has brought in 87 big and small reforms in 21 sectors.