Modi Guarantees Reform. Good Days On The Way
BANGALORE: On Friday, Prime Minister Narendra Modi promised a series of fast paced changes continuing to protect the interests of the poor.
"It will take hard work, sustained commitment and strong administrative action. But we can overcome the mood of despair," Modi said.
Though it reflects a healthy progress ahead but India’s former Central Bank Governor, Dr. Duvvuri Subbarao states the probable hurdles in the way to chase these transitions. However, he expects situations to be different this time, as the changes are a direct promise form the Prime Minister of the country.
"There's been a remarkable turnaround in the India growth story, not so much because of what the new government has done, but because of what the new government is expected to do in the next 4-4.5 years," he said.
While the economic magnification of the country falling to below 5 percent, inflation running above 8 percent and reforms stagnating, Asian Development Bank expects a better scenario with economy growing 7.8 percent in 2015-16 and 8.2 percent in 2016-17.
"India stands uniquely in the world today because while every other country is demand constrained, including China, India is supply constrained," Subbarao said. With a per capita income of around $1,500 annually, "any improvement in income quickly translates into consumption and production has to catch up."
Subbarao also noted that rural incomes have increased by around 10 percent a year in past ten years.
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