by Yogima Seth Sharma
Prime minister Narendra Modi on Saturday said India's rapid economic growth in Asia is very distinct for more than one reason. "We have never tried to gain in trade at the expense of our partners. We do not follow "beggar thy neighbour" macro-economic policies," he said taking a jibe at China.
Speaking at the Advancing Asia event PM Modi said, "We have never undervalued our exchange rate. We add to world and Asian demand by running current account deficits," adding that India is therefore good Asian and good global economic citizens and a source of demand to our trading partners.
According to Modi, India can contribute to Asian prosperity and development by being economically strong. "Amid global problems, India is a haven of macro-economic stability and a beacon of hope, dynamism and opportunity," he added.
Highlighting India's achievements under his leadership, PM Modi said that India has achieved major gains in macro-economic stability. "A durable reduction in inflation, steady fiscal consolidation, a comfortable balance of payments position and build-up of foreign exchange reserves are the highlights," he said, adding that in a difficult external environment and despite a second successive year of weak rainfall, we have increased our growth rate to 7.6 per cent, the highest among major economies in the world.
However, PM Modi asserted that his government would not rest at this only. "We do not intend to rest on these achievements because my agenda of "reform-to-transform" still needs to be finished," he said.
Talking about the long pending quota revisions PM Modi said that the quotas of emerging countries will now better reflect their weight in the world economy. "This will give them more say in collective decisions in the IMF," he said.
According to PM Modi, reform of global institutions has to be an on-going process. It must reflect changes in the global economy, and the rising share of emerging economies. "Change in quotas is not an issue of increasing the 'power' of certain countries. It is an issue of fairness and legitimacy," he said, adding that the belief that quotas can be changed is essential for the fairness of the system.
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