Economy poised to grow faster than 7.5%: PM Narendra Modi

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New Delhi | Published: November 23, 2015 12:49:22 AM

We are changing the way government and citizens interact with each other. States compete with one another now. That is healthy, said PM Narendra Modi.

The Prime Minister’s comment comes ahead of the GDP data for the second quarter of FY16 expected this week. India’s economy grew by 7.3% in FY15 and by 7% in Q1FY16. (Reuters)The Prime Minister’s comment comes ahead of the GDP data for the second quarter of FY16 expected this week. India’s economy grew by 7.3% in FY15 and by 7% in Q1FY16. (Reuters)

Development in India was “gathering speed now” amid the global slowdown and the country was growing at 7.5% with faster growth expected in the coming years, Prime Minister Narendra Modi said on Sunday. Addressing the Indian diaspora on the second day of his three-day visit to Malaysia, he said: “We are making government transparent and accountable. We are eliminating corruption at all levels. We are making governance driven by policies and systems, not by discretion of individuals.”

The Prime Minister’s comment comes ahead of the GDP data for the second quarter of FY16 expected this week.  India’s economy grew by 7.3% in FY15 and by 7% in Q1FY16.

With contraction in all but ten of the 30 major commodities, India’s merchandise exports have fallen a steep 17.5% annually to $21.35 billion in October, sustaining the shipments in negative territory for a long 11 months. While the government is making efforts to push investment, especially in infrastructure sectors like power, roads and ports, the industrial production data have for several months now been not giving definite signals of a strong revival.

With public investments are seemingly helping kick-start the investment cycle, the World Bank recently retained its growth projection for India at 7.5% for the current fiscal year. The bank said India’s growth is expected to gradually accelerate to 7.8% in FY17 and 7.9% in FY18.

Telling the diaspora about his government’s work, Modi said, “The wheels of change have begun to move. And, they are gathering speed now. And, it is showing in numbers.” The Prime Minister said every major global institution has placed its bets on India growing strongly. “This is at a time when the rest of the world, including parts of this region, is experiencing a slowdown.”

Describing terrorism as the “biggest threat” to the world, Modi said it needs to be delinked from religion as he pressed for a united global fight to ensure that no country provides sanctuary to terrorism. He underlined the need for ensuring that Internet does not become a “recruiting ground” for terrorism, amid the growing trend of ISIS luring youth from across the globe, and spoke about the world coming together to use “military force” and “international legal systems” to fight the menace.

Earlier in the day, ASEAN leaders declared the establishment of an EU-style regional economic bloc, ASEAN Economic Community (AEC), a single market with a free flow of goods, capital and skilled labour in the region.

The Kuala Lumpur declaration on the establishment of the AEC was signed by the leaders of 10-nation grouping in front of world leaders including Modi and UN Secretary General Ban Ki-moon.

The AEC envisages a single market with a free flow of goods, capital and skilled labour across borders in the highly competitive economic region. The ASEAN leaders also adopted the declaration on “ASEAN 2025, forging ahead together”. “ASEAN is working towards a community that is politically cohesive, economically integrated and socially responsible,” the declaration said.

(With PTI inputs)

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