Modi takes on 'pessimist' critics of economic policies, says govt working for India's future

Modi exuded confidence that the steps being taken by the government will put the country in a new league of development.

New Delhi: Slamming critics of country's economic policies, Prime Minister Narendra Modi on Wednesday said that some people like spreading pessimism based on just one quarter of slowdown.

India's GDP grew slower at 5.7 percent during April-June -- the lowest in three years of the Modi government.

Gross domestic product (GDP) growth in the first quarter of 2017-18 was lower than 6.1 percent of the preceding one and 7.9 percent in the same period last fiscal.

Modi said his critics were focusing on the slowdown in the last two quarters but were ignoring the fact that the BJP government had brought down inflation from 10 percent in the UPA regime to 2.5 percent, shrunk Current Account Deficit to near 1 percent from 4 percent and brought down fiscal deficit to 3.5 percent from 4.5 percent.

“Dip in economic growth in one quarter has boosted pessimists. It is not the first time that growth has dipped to 5.7 percent in any quarter,” Modi said while addressing Company Secretaries at inauguration of Golden Jubilee Year of Institute of Company Secretaries of India in the national capital.

The Prime Minister, however, said that not everything that a critic says is wrong, but one should refrain from creating a negative environment in the country.

Modi added that after achieving average growth of 7.5 percent over 3 years, growth rates came down April-June but he exhuded confidence that the steps being taken by the government will put the country in a new league of development.

Rejecting India Inc and analysts' disappointment on the data on economic activities, the PM said that the government is committed to reverse the trend.

"Fundamentals of Indian economy are strong, reform process will continue keeping financial stability in mind," he added.

As businesses destocked inventories ahead of the GST kick-off from July 1, gross value added (GVA) in manufacturing declined to a low of 1.2 percent, from 10.7 percent, year on year.

Allaying the concerns over bottlenecks in GST, the PM reiterated, "I have told the GST council to review the problems being faced by traders and we are willing to make changes as per the suggestions."

The Prime Minister said there was a time when India was part of 'fragile-5' and the BJP government pulled it out to make it the fastest growing economy for most part of its three-year rule.

The government, he said, was aware that growth has slowed and is taking steps to improve it.