“It was said that making a clean India was impossible, but people of India are making it possible.It was said that a corruption free government in India was impossible, but people of India have made it possible.It was said that it is impossible to remove corruption from the process of giving people their due, but people of India are making it possible.It was said that it is impossible for the poor to leverage the power of technology, but the people of India are making it possible.It was said that removing discretion and arbitrariness in policy making was impossible, but people of India are making it possible.It was said that economic reforms in India were impossible, but people of India are making it possible.It was said that governments cannot be pro-growth and pro-poor at the same time, but people of India are making it possible.I have also been told, that there is a perception or theory that a developing economy cannot grow at higher rate for a longer period, without facing the problem of inflation.
Post liberalisation that is after 1991, almost all governments formed in our country had to face this problem – what many experts call “over-heating” of economy after a short period of growth. As a result of this we never had sustainable higher rate of growth.You may recall, that we had a government, between 1991 and 1996 where the average growth was about five percent, but the average inflation was more than ten percent;The government just before us between 2009 to 2014 had an average growth of about six and half percent with an average inflation again in double digit;
During 2014 to 2019, the country would register average growth of seven point four percent and the average inflation would be less than four and half percent;Post liberalisation of Indian economy, this will be the highest rate of average growth and lowest rate of average inflation witnessed during the period of any government.With these changes and reforms, transformation is happening in the way our economy has moved.The Indian economy has expanded the bouquet of its financing resources. It is no more dependent on banks credit for investment needs.
Take the example of fund raising from the capital market.During 2011-12 to 2013-14, that is, three years prior to this government,the average amount of fund raised through equity was about rupees fourteen thousand crore per annum. In the last four years, this average is about rupees forty three thousand crore per annum. This is almost three times.The total amount raised by Alternative Investment Funds during 2011 to 2014 was less than rupees four thousand crore.
Our Government took various measures to develop this source of financing in the economy.And, you can see the result – from 2014 to 2018 in four years, the total amount raised by Alternative Investment Funds is more than rupees eighty one thousand crore.This is a jump of the order of twenty times.Similarly let us see the example of private placement of corporate bonds.The average amount of fund raised through this during 2011 to 2014 was about rupees three lakh crore or about forty billion dollars.Now the average over the last four years has gone up to rupees five point two five lakh crore or about seventy five billion dollars. This is a jump of almost seventy five percent.All these are examples of confidence shown in the Indian economy.
Today this confidence is shown not only by domestic investors, but also by investors from all across the world.And the confidence shown in India continues, breaking the earlier trend of pre-election years.In the last four years, the amount of Foreign Direct Investment received in the country was almost equal to what was received in seven years before 2014.To achieve all this, India needed reforms to transform.And by having the Bankruptcy Code, GST, Real Estate Act to name a few, – a solid foundation for decades of higher growth has been laid.Four years ago, who would have believed that rupees three lakh crore or about forty billion dollars would be returned by defaulting borrowers to financial and operational creditors.This is the impact of Bankruptcy and Insolvency Code. This will help the country in allocating financial resources more efficiently.
While we attended to the plumbing work on economy which was not attended for so many years, we also decided not to put a caution board of “go slow, work in progress”.All these reforms were implemented without halting work for the well-being of the larger sections of society.
India is a country of 130 crore aspirations and there can never be a singular vision for development and progress.Our vision of new India caters to all sections of the society, irrespective of their economic profile, their caste, creed, language and religion.We are working hard to create a New India which fulfils the aspirations and dreams of 130 crore Indians.Our vision of new India includes addressing the challenges of the future while also solving problems of the past.So today, while India has made its fastest train, it has also eliminated all un-manned railway crossings.Today, while India is building IITs & AIIMS at a rapid pace, it has also built toilets in all schools across the country.Today, while India is building a 100 smart cities across the country, it is also ensuring rapid progress in over 100 aspirational districts.
Today, while India has become a net exporter of electricity, it has also ensured that crores of households which were in darkness since independence have got electricity.Today, while India prepares to send man to Mars, it is also ensuring that every Indian has a roof over his head.Today, while India is the fastest growing world economy, it is also removing poverty at the fastest speed.We often lament at missing the industrial revolutions in the past, but today it is a matter of pride that India is an active contributor to the fourth Industrial Revolution.The extent and magnitude of our contribution will surprise the world.
I am also confident that India may have missed the bus during the first three industrial revolutions, but this time, it is a bus India has not only boarded but will also drive.Innovation and Technology will form the bed-rock of this resurgence.The outcomes of our focus on Digital India, Start-up India, Make In India and Innovate India are converging and reaping rich dividends.
Do you know that while around four thousand patents were granted in 2013 and 2014, more than thirteen thousand patents were granted in 2017-18?This is a three fold increase!Similarly, do you know that the number of trade-marks registered has also gone up from around sixty eight thousand in 2013-14 to around two point five lakh in 2016-17.This is almost a four fold increase!
You would be happy to know that today 44 percent of the startups registered in India are from tier 2 and tier 3 cities?A network of hundreds of Atal Tinkering Labs is coming up across the country and helping foster an atmosphere of innovation.This will give a solid foundation for our students to help them become innovators of tomorrow.
I was impressed to see how a young girl from the snake charmer community was literally charming the mouse and making the most of digital India.It is equally heartening to see how youth in villages are leveraging Wi-Fi and digital tools to help in clearing competitive exams. It is technology which is bridging the gap between the haves and have-nots in our country.Stories like these are writing a new chapter in the history of India.We want to cut down on import dependence;We want to make India a world leader in electric vehicles and energy storage devices.”
Excerpts of Prime Minister Narendra Modi speech at Global Business Summit
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