New Delhi: On the eve of his second anniversary in office, Prime Minister Narendra Modi claimed that he brought in many changes which were regarded as difficult by the erstwhile regime and that his government has set a path for accelerated growth that Indian states now need to help navigate.
The Prime Minister said that in last two years, his government has opened up more of the economy to foreign investment and made changes to curb corruption, fill gaps in rural infrastructure and make it easier to do business.
“I have actually undertaken the maximum reforms. But I have an enormous task ahead for myself,” the Prime Minister told Wall Street Journal in an interview at his official residence, 7, RCR.
“Today, unlike before, India is not standing in a corner,” the PM added.
The Prime Minister noted that the changes his government has put in place would have been regarded in previous administrations as difficult to implement, but now that he has done them.
“When I came to the government, I used to sit down with all the experts and ask them to define for me what is the ‘big bang’ for them,” Modi said. “Nobody could tell me.”
On ‘controversial land bill’, which the opposition had portrayed as anti-poor, Modi said that the ‘efforts to amend the law were over now’ and that it was up to states to pursue changes.
“Labour reform should not just mean in the interest of industry. Labor reform should also be in the interest of the labourer,” he said.
On many occasions, government officials and investors have citied difficulty in obtaining land, hampering several development works and affecting the much needed infrastructure.
On Foreign Direct Investment, Modi said that his pitches on trips around the world yielded results in terms of increase in FDI inflows. FDI inflows have risen rapidly, from USD 24 billion in 2012 to USD 44.2 billion in 2015 - a seven-year high.
The country's position in terms of FDI inflows is expected to further improve in the current year. Additionally, the quality of FDI inflow into India is much better than China. FDI inflows into China have moderated to 2.3 per cent of GDP in 2015, from 2.6 per cent in 2014. During the same period, FDI inflows into India rose to 2.1 per cent from 1.7 per cent.
The Prime Minister expressed his reluctance to sell state-owned enterprises, but pointed to progress in divesting minority stakes in them and to increase the participation of private companies in sectors once dominated by the state.
“In any developing country in the world, both the public sector and the private sector have a very important role to play. You can’t suddenly get rid of the public sector, nor should you,” he said.
The interview of PM Modi comes ahead of his next month’s United States visit. The Prime Minister will arrive in US on June 7, his fourth trip to the country in two years. He will meet President Barack Obama and also address a joint session of the US Congress.
About his US visit next month and his relations with Obama, Modi said, "We have also developed a kind of friendship where we speak freely with each other."
PM Modi hopeful of GST passage this year
Responding to a question on Goods and Services Tax (GST) bill, Modi said he expects the legislation to pass this year.
The GST bill, which has been approved by Lok Sabha, is pending in Rajya Sabha because of stiff resistance by Congress, the largest party in the House. Government has been insisting that most of the parties, except Congress, are in favour of GST, which will bring about a uniform indirect taxation regime in the country.
Defence manufacturing is India’s biggest job spinner: PM
The Prime Minister further identified defence manufacturing as India’s biggest job spinner, saying the government was committed to making arms and equipment at home.
He said that India certainly wanted to go ahead with manufacturing ‘because we have a lot of defence imports’.
"As far as defence is concerned, certainly India wants to go ahead in defence manufacturing because we have a lot of defence imports," he said.
"If I look at from an economic point of view, and to provide jobs to my country's young people, the defence equipment manufacturing sector can provide the maximum number of jobs to my country's youth. For that I have been working hard for many days and I also talk to other countries," he added.
India is the world’s largest importer of arms, accounting for 14% of global purchases. New Delhi desperately needs to modernise its aging Russian-era equipment as China and Pakistan upgrade their arsenal with latest technology and purchases.
India wants very close relationship with neighbours: PM
On foreign policy, Modi said his government wants to build very close relationship with neighbours for which he is taking personal initiatives.
"You know that the day my government came to power, it was my initiative to invite the heads of State, of all SAARC countries for my swearing in ceremony. Even before I became Prime Minister, I made my intentions clear that we want to build a very close relationship with all our neighbours," Modi said.
"The development that I desire for India, I want the same for our neighbours. And this is why I visited Lahore recently. So this (improving relationship with neighbours) is my own initiative," Modi said responding to a question on ties with neighbours, in particular Pakistan.
Terrorism a global concern: PM Modi
The Prime Minister also spoke about terrorism. "Yes terrorism is a concern for the whole world. We can't compromise on terrorism, nor should we. Wherever there is terrorism in the world, we stand against it," Modi said in response to the question.
Modi, who has spent considerable part of his time in meeting world leaders and building relationships with them, feels that India is no longer standing in a corner and is confident of New Delhi's rising position on the global stage.
He also downplayed any friction with China, pointing to increasing trade and diplomatic exchanges between the two nations.
