Where We Are Headed
Corporate India continues to back PM Modi, even though it finds fault with the government’s handling of the economy
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Faced with a barrage of criticism on economic mismanagement, PM Narendra Modi himself chose to answer his critics recently, and made a passionate plea for not spreading the mood of pessimism in the country.
Counting as success stories of his last three year rule, the PM said that the rising FDI inflows in the country were a proof that foreign investors trusted the Indian economy. He also compared the FDI Inflow in the last three years with the inflow since the liberalisation process began in 1992.
He reminded the Opposition that India was once considered as part of “Fragile 5 economies”, when an economist was at the helm.
Pointing to the rising demand in the economy, the PM cited how the telephone subscriber base had increased by 14 per cent. Similarly, air traffic had risen by 14 per cent in the last two months.
He further said: “Since June, commercial vehicle sales are up by 23 per cent, passenger vehicles are up by 12 per cent, and two-wheeler sales are up by over 14 per cent,” pointing to the upturn in the economy.
He reiterated that demonetisation marked the beginning of a war against corruption.
The PM might have put up a stout defence of his government, but is that enough?
Large sections of Corporate India were said to be getting the jitters post demonetisation, GST. Have their concerns now been addressed?
Just before the PM’s speech, we commissioned a Corporate India Survey, which threw up interesting results. While it finds faults with the government’s handling of the economy, its faith in PM Modi remains unshaken.
As an active participant in the entire process, Union Finance Secretary Ashok Lavasa gives a peek into the Government thinking — how it thinks the economy may bounce back sooner than expected.
A team of eminent economists and thinkers — Gurcharan Das, Arvind Virmani, Arun Kumar and Jagadish Shettigar — meanwhile dissect the current economic slowdown, and come up with interesting prescriptions for the government and the PM.