India a model of high growth, low inflation, says PM Modi

Prime Minister Narendra Modi on Saturday said India has emerged as a model of high growth and low inflation, citing the country’s 8.2 per cent GDP expansion in the second quarter of the current fiscal as a clear sign that it is becoming a key driver of the global economy.

Speaking at the Hindustan Times Leadership Summit, Modi said India’s self-confidence had once been weakened by the “mentality of colonialism”, but the country is now moving ahead with a renewed outlook. At a time when the world is facing volatility, he said India is being viewed in “a different league”.

Modi said the transformations underway in the country reflect not just possibilities but “a saga of changing thinking and direction”.

“We are standing at a juncture where one fourth of the 21st century has passed. The world has seen many ups and downs: financial crisis, global pandemic, technological disruptions, world falling apart, we are seeing wars, these situations in one way or the other are challenging the world,” he said.

He added that despite the global uncertainty, India stands out.

“India is full of self confidence. When there is talk of slowdown, India writes the story of growth. When there is trust deficit in the world, India is becoming a pillar of trust, when the world is moving towards fragmentation, India is becoming a bridge builder,” Modi said.

Referring to the Q2 GDP growth of over 8 per cent, the Prime Minister said it reflects the pace of the economy.

“This is not just a number but is a strong macroeconomic signal. It is a message that India is becoming the growth driver of the global economy,” he said.

Modi pointed out that global growth is around 3 per cent and G7 economies are expanding at an average of about 1.5 per cent. “At such a time, India is a model of high growth and low inflation,” he said.

He added that concerns about high inflation used to dominate discussions among economists in previous years, but the same experts are now noting India’s relatively low inflation environment.

Modi said India’s achievements are “not ordinary” and represent a fundamental shift brought about over the past decade.