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PM Modi to Network18: Did not reveal full economic rot in 2014

Noting that sluggish private investments were a continuing blowback from before the time he took office of the Prime Minister, Narendra Modi, in an exclusive interview to Network18, said that India's economy has seen off the worst and that the government didn't want to take shortcuts to give it an artificial sugar rush.

September 03, 2016 / 18:42 IST
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Prime Minister Narendra Modi has said India’s economy has seen off the worst and the government didn’t want to take shortcuts to give it an artificial sugar rush, noting that sluggish private investments were a continuing blowback from before the time he took office. Modi, in an exclusive interview to Network18, also said for the first time that economic conditions when he took office in May 2014 were much worse than it seemed on the surface. The situation in May 2014 was so bad that had he been completely upfront about it, it would have dragged the economy even lower and the world’s view of India would have gotten worse, he said, adding that he chose to be silent even at the cost of political damage.“Today I think, before presenting the first Budget, I should have placed a White Paper in Parliament on the economic situation in the country. This thought had come to me. I had two paths. Politics told me that I should put out all the details. But the nation's interest told me that this information would increase the hopelessness. The markets would have been badly hit. It would have been a big blow to the economy and the world's view of India would have got worse. It would have been very difficult to get the economy out of that.” “I chose to stay silent at the risk of political damage in the national interest... I didn't put these details out in public. It hurt us, we were criticized.. It was made to look like it was my fault. But I took the political damage in the country's interest… All these issues from the past have impacted private investment,” he said. India is among the world’s fastest growing major economies today, but many experts say private investment in the economy is still to pick up. The prime minister said some of this could be because the banking sector, trying to fix its NPA woes, had tightened the screws. “Despite that, the pace at which roads are being made, railways is expanding. There’s a six-fold increase in electronic goods manufacturing.” “These things show we haven't taken shortcuts. And my motto is like what you see on railway platforms — 'shortcuts will cut you short'. We don't want to take any short cuts and the results are showing.” He, however, said the economy had seen off the worst. “Anyway the situation has improved. We don't have to worry about these things. But let me tell you that in the beginning, in May 2014, I chose the tough path. And when unbiased people analyse the situation, I am confident they will be surprised.” Prime Minister Narendra Modi sat down with Network18 Group Editor Rahul Joshi for a comprehensive interview covering a multitude of topics spanning politics, economy, the criticism of his government following recent attacks on Dalits, vote bank politics and casteism and also offered a rare peek into himself, his working style and his closely held beliefs. Appended below is the edited transcript of the interview translated from Hindi into English. Question: At the outset, thank you for giving this interview to Network18. Two years ago you were elected with a historic mandate, the most decisive in three decades. How do you view the last two years and what do you think has been your biggest achievement?

Modi: After getting the responsibility of becoming the Prime Minister it has been about two years and three months. India is a democratic country and the people evaluate governments regularly. The media also evaluates. And these days, professional survey agencies also do this. And I think this is a good thing and that's why I leave it to the people to evaluate how my government has performed. But I will definitely want that whenever my government is evaluated, the situation of the government before we came to power must be kept in mind, what the state of the country was, what the media was discussing.

If we keep that in view, those days newspapers were filled with news of corruption, despair... People had lost hope, they thought everything had sunk. If a patient, however good the doctor, is despondent, medicines will not cure him. But if the patient is hopeful, then even an average doctor can cure him. The reason for that is the patient's inner belief. My first priority after forming the government was that the atmosphere of despair should be removed and create hope and belief in the country. That doesn't happen with speeches. Concrete steps need to be taken, it has been shown to be done. And today after more than two years, I can say with certainty that there is hope not just in the people of this country, the trust of the entire world in India has grown.

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There was a time when we were being seen as a sinking ship. In the BRICS, the ‘I’(representing India) was seen as wobbly. Today, it is said that if there is a bright spot, it is India. I think this in itself is a good way to evaluate.

Q: You came to power on the issue of development, so a question on the economy. After a lot of effort you succeeded in passing the GST Bill. How big a success do you see this. What does it mean for the common man?