NEW DELHI: Brushing aside all the pessimism and growing fears of a recession due to coronavirus-induced lockdown, Prime Minister Narendra Modi on Tuesday assured India Inc that the country will definitely get back its economic growth soon as the government continues to pursue multiple structural reforms.
“I will go beyond getting growth back to say Yes! We will definitely get our growth back,” the Prime Minister said, while addressing the 125th annual session of the Confederation of Indian Industry (CII) through a video conference. Modi added he has full confidence in Indian farmers, business leaders, MSMEs and the capabilities of the entrepreneurs to reach the target.
The Prime Minister’s assertion comes a day after global ratings agency Moody’s downgraded India’s credit rating to a notch above junk status, citing challenges in implementation of policies, deteriorating fiscal position, and stress in the financial sector. It may be noted that India’s GDP grew by 4.2 per cent in 2019-20, the slowest pace in 11 years, and most of the economists and rating agencies have warned that the economy is set to contract in FY21.
Without commenting on the downgrade, Modi said reforms undertaken during the lockdown will help the economy in the long-run. “On one hand, we have taken tough steps to fight the virus and on the other, we have taken care of the economy,” he added. Assuring to undertake more structural reforms, Modi added the nation will become more self-reliant in the days to come.
“The world is looking for a trusted, reliable partner and India has the potential, strength and ability. Today, all of you, including all industries must benefit from the trust that has developed for India all over the world,” he said, adding the government will stand shoulder to shoulder with industries in their endeavour to help India become self-reliant.
“If you take two steps, the government will be four steps ahead in supporting you. As the Prime Minister, I assure you that I will stand with you,” he said, in an effort to lift the sombre mood of the industry. Post Covid-19 pandemic and the subsequent lockdowns, most companies have been forced to resort to job cuts amid weak demand, and economic certainty.