Reuters Photo Credit: Reuters

Won’t hesitate to make tough decisions to help economy, says PM Modi

26 December, 2016

India will not hesitate to make tough decisions to help support its growing economy, Prime Minister Narendra Modi said on Saturday, alluding to his recent scrapping of 500 and 1,000 rupee banknotes to tackle endemic corruption.

Modi told an event organised by the Securities and Exchange Board of India (SEBI), India’s capital markets regulator that his government would continue to follow sound and prudent economic policies to ensure that India’s long-term prospects are bright.

“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 interests of the country,” Modi said.

“Demonetisation is an example. It is a short-term pain but it will bring long-term gain.”

Modi announced the shock move to ditch 500 and 1,000 rupee notes with a combined value of $256 billion on Nov. 8, saying the large denomination notes fuelled corruption and fraud and were even used to finance attacks by militants who target India.

With the cash economy estimated to account for a fifth of India’s $2 trillion gross domestic product, the decision has disrupted the daily lives of hundreds of millions of Indians.

But economists and some businesses say it could ultimately help broaden the formal economy and improve tax compliance.

Modi said the government had transformed the economy in less than three years by cutting and achieving fiscal deficit targets, keeping the current account deficit low, boosting foreign exchange reserves and lowering inflation.

“Developed countries and emerging markets are both facing slow growth. Against this background, India is being seen as a bright spot. Growth is projected to remain among the highest in the world,” he said.

Like this report? Sign up for our daily newsletter to get our top reports.


Leave Your Comment
How abolishing Rs 500 and Rs 1000 notes could impact real estate, gold investments

How abolishing Rs 500 and Rs 1000 notes could impact real estate, gold investments

Aman Malik 9 months ago
Late on Tuesday, the Narendra Modi government took the country by surprise and scrapped Rs 500 and Rs 1,000 currency notes. This can have a...
PM Modi losing allies as anger grows over banknote ban

PM Modi losing allies as anger grows over banknote ban

Reuters 8 months ago
A leading political ally of Narendra Modi has abruptly distanced himself from the Indian prime minister’s move to scrap high-value banknotes, as broad initial support...
Why the US Fed’s rate hike is not good news for India

Why the US Fed’s rate hike is not good news for India

Aman Malik 8 months ago
The US Federal Reserve on Wednesday raised interest rates in a widely expected decision and said it expects as many as three rate increases during...
No Comments

Won’t hesitate to make tough decisions to help economy, says PM Modi

Powered by WordPress.com VIP