Prime Minister Narendra Modi on Tuesday said India is firmly on the path to becoming the world’s third-biggest economy within the next five years and that global investors are eyeing it as an investment destination, as he exhorted the domestic industry to seize the golden opportunity to be part of the journey of ‘Viksit Bharat’.
Addressing a CII post-budget conference, he said wealth creators are the main driving force of the country’s growth story.
“Today, the whole world is looking at India and you (industry). Policies of the government and commitment and investment are becoming foundation of global development. Investors across the world are keen to come to India. World leaders are filled with positivity for India. This is the golden chance for the Indian industry and we should not lose this opportunity,” Modi said.
The Prime Minister positioned India’s capital expenditure strategy as a global benchmark, emphasising the country’s fiscal prudence and robust economic growth in the face of global uncertainties.
“India’s capital expenditure has increased more than fivefold to over ₹11.11 lakh crore in the past decade. Capital expenditure is the most effective form of resource investment, and our fiscal prudence sets a global example.”
Modi emphasised India’s role as a place of high growth and low inflation in a world grappling with the opposite. The economy grew 7.8 per cent in the March quarter, pushing the annual growth rate to 8.2 per cent.
Murthy caution
Infosys founder Narayana Murthy has said “India is far away from becoming a (manufacturing) hub and all of that. These are all big words we should not use.”
Such ambitions may come unstuck because of the bottlenecks in government functioning and pessimism among labourers, Murthy said.
He said China has become a global manufacturing hub as its citizens are disciplined. The gross domestic product of China is six times that of India.
Vaulting growth ambitions may come unstuck because of the way the government functions.
“Unfortunately, the response time, transparency, accountability, speed and excellence in public governance systems in India still has to improve. It will improve but will take time.” He was speaking at a recent technology event in Bengaluru.
