PM Modi says in interview to The Wall Street Journal he has done maximum reforms.
AB Wire
Indian Prime Minister Narendra Modi, in an exclusive interview to The Wall Street Journal, on the eve of his second anniversary in office, has said he has actually done “maximum reforms” which has set the path for the country’s accelerated growth trajectory, and the Indian states need to help navigate it for success.
Modi said in the interview conducted at his residence in New Delhi on Wednesday by Gerald Baker, the Editor-in-Chief of The Wall Street Journal, he had 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,” Modi said, adding, “I have an enormous task ahead for myself.”
Modi is confident of India’s rising position on the global stage and which he will convey in his meeting with President Barack Obama and in his address to a joint session of the U.S. Congress, next month.
“Today, unlike before, India is not standing in a corner,” Modi said.
The Journal noted some of the failures of the Modi government, which were to an extent inability to reach consensus in Parliament with opposition parties, especially on the issue of legislation that would have made it easier to acquire farmland for industry and infrastructure.
Modi said in the interview his focus was also to look to Indian states to further liberalize the country’s rigid labor laws, another area seen as crucial and contentious. Few of them, including states controlled by the BJP, have made much headway, noted the Journal.
“Labor reform should not just mean in the interest of industry,” Modi said. “Labor reform should also be in the interest of the laborer.”
Modi also said he hoped the GST would soon become legislation, this year.
“Across a range of policies, Mr. Modi often touts a middle way. For instance, the prime minister expressed reluctance to sell state-owned enterprises, saying they play an important role in the economy. But he pointed to progress in divesting minority stakes in them and to increasing the participation of private companies in sectors once dominated by the state,” the Journal noted.
India’s economy has rebounded, expanding 7.6% in the year that ended March 31, after the country’s statisticians revised the way they calculate gross domestic product. The government’s budget deficit has narrowed significantly and inflation is down, helped by lower oil prices.
Modi’s impassioned sales pitches on trips around the world, have helped prompt a sharp uptick in foreign direct investment, which rose 29% to $40 billion in the latest fiscal year, noted the Journal.
In the “relationship between China and the U.S., there are areas where they have substantial differences but there are also areas where they work closely,” Modi said. “This is the new way. If we want to ensure the success of this interdependent world, I think countries need to cooperate, but at the same time we also need to ensure that there is respect for international norms and international rules.”
Asked to comment on Donald Trump’s proposed ban on Muslims, Modi evaded a direct answer, commenting: “These are issues of debate in the election. A government shouldn’t respond to that,” he said. “As a part of the election debate many things will be said there, who ate what, who drank what, how can I respond to everything?”