OdishaPlus Bureau
A day after Moody’s downgraded India’s credit rating to a notch above junk status on growth concerns, Prime Minister Narendra Modi on Tuesday asserted that the country will definitely get back its economic growth and said reforms undertaken during the lockdown will help the economy in the long-run.
Pledging to undertake more structural reforms that will change the course of the country, he explained the concept of Atmanirbhar Bharat or Self-reliant India, one where products are Made in India for the world and a nation that is not dependent on others in strategic sectors.
Speaking at CII’s Annual Session, he called on India Inc to rise to the occasion and partner rural India in these testing times.
“On the one hand we have taken tough steps to fight the virus and on the other, we have taken care of the economy,” he said. “We have to save the lives of citizens while also stabilize the economy and speed up growth,” he added.
Indian industry, he said, has started talking about ‘getting growth back’. “I will go beyond getting growth back to say Yes! We will definitely get our growth back,” he said expressing confidence in Indian farmers, small businesses, and entrepreneurs for helping achieve that.
Meanwhile, Moody’s Investors Service on Monday downgraded India to the lowest investment grade level and kept it on a negative watch. This because the country faces a prolonged period of slower growth relative to its potential and rising debt.
It joined S&P Global Ratings and Fitch Ratings in predicting the first contraction in GDP in over four decades and a fiscal deficit blowout as the coronavirus pandemic spreads.
Reforms, he said, means the courage to take decisions, and take them to their logical conclusion. The government is trying to create a facilitative ecosystem for private enterprises, he said.
During the lockdown, the government opened up non-strategic sectors to the private sector. It freed up the coal sector by allowing commercial mining and allowed the private sector to invest in sectors like space and atomic energy. Also, long-pending labor reforms are being undertaken. To get back on the growth path, the country needs to focus on intent, inclusion, and infrastructure.
