Modi promises reforms to make India a 20 trillion dollar economy

Tuesday 20th January 2015 07:17 EST

Prime Minister Narendra Modi has said that his government would change rules and initiate reforms at top speed to make India a 20 trillion dollar economy from its present two trillion dollars.

Addressing a business summit in New Delhi, the Prime Minister said reforms would take place in key areas such as infrastructure, taxes and subsidies, and an effort would be made to cut down multiple clearances that choke investment.

He said transparency and efficiency in governance, and institutional reforms are essential for rapid growth and the new government was moving fast in designing policies and laws to promote it. He said the setting up of the National Institution for Transforming India (NITI) Aayog, is a step in the direction of major institutional reform in the country which would create trust and partnership between the Centre and States.

Prime Minister Modi said infrastructure was being given a boost and new approaches and instruments were being put in place to attract greater investment in sectors like railways and roads.

He said the schemes like 'Jan Dhan Yojana' would pursue to get the poor included in the financial system.

The Prime Minister also talked about a massive national programme for computerisation of public distribution system. He said the poor needed subsidies and there was a need to cut leakages in the process. He said the government would introduce direct cash transfers in different schemes apart from cooking gas subsidy while stating that the cash subsidy transfer to users of cooking gas was the world's largest cash transfer programme.

He also stressed need for nurturing an atmosphere where the economy is primed for growth and in turn all-round development. Reforms, he said, must have a concrete objective to ensure the welfare of the people and added that development should be employment generating and the employment enabled by skills. Prime Minister also reiterated Centre's commitment to achieve the fiscal deficit target announced in the budget.

Prabhu backs PM Modi's vision

Union railway minister Suresh Prabhu said that India could be a 20 trillion dollar economy if it continues to grow at nine per cent. Addressing Summit, Prabhu said, "states also need to do their bit for India's economic growth". He also said investments needed to be made in the railways if a deterioration of services was to be avoided.

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