Modi: Reforms should be inclusive, broad-based

Prime Minister Narendra Modi on Friday said the country’s economy has performed better on all parameters, including inflation and foreign investment, in the past 17 months while emphasising that reforms should be broad-based and focus on improving people’s lives.

Participating in the Delhi Economics Conclave 2015, the prime minister said his government seeks to roll out inclusive reforms that will lead to better lives for people and not just grab headlines.

His words, “grabbing headlines” were seen as a reference to recent criticism by former Union minister Arun Shourie that Modi only bothered about grabbing headlines and that the economic policy was directionless.

He also said the government’s efforts to bring back black money stashed abroad have yielded as much as Rs 10,500 crore. “Rs 6,500 crore was assessed before the new black money Act was implemented. Additionally, over Rs 4,000 crore has been declared under the new Act. Thus, over Rs 10,500 crore of black money from abroad has been detected and assessed,” he said.

“India is doing better than when we took office 17 months ago. GDP growth is up and inflation is down, foreign investment is up and CAD is down, revenues are up...the fiscal deficit is down and the rupee is stable. Obviously, this did not happen by accident...This success is a result of a series of well thought policies,” he said.

Recalling various initiatives taken on the economic front, Modi said the government has endeavoured to pursue “inclusive and broad-based reforms” stressing it was a “marathon and not a sprint”.

Without naming any of his critics, Modi said there was a whole eco-system focused on alleviating poverty, which can be called the “poverty alleviation industry”.

“Obviously the intentions are good… Well designed schemes and subsidies do have an important place. But empowering the poor is far more effective than empowering the poverty alleviation industry,” he said.

“My appeal to all of you is to think beyond conventional remedies. Our idea of reform should be inclusive and broad based." he said while inaugurating the conclave being attended by economists from India and abroad.