Won’t undervalue forex rate for trade, says Modi
POSITIVE Stressing the process of ‘reform-to-transform’, Prime Minister says India is a haven of macro-economic stability
NEW DELHI: Prime Minister Narendra Modi said on Saturday that his government will continue its ‘reform-totransform’ process but signalled the country will not undervalue its exchange rate to boost trade.
“We have never tried to gain in trade at the expense of our partners. We do not follow ‘beggar thy neighbour’ macroeconomic policies,” Modi told a conference organised by the International Monetary Fund here on Saturday.
“We have never undervalued our exchange rate. We add to world and Asian demand by running current account deficits. We are good Asian and good global economic citizens, and a source of demand to our trading partners,” he said at the Advancing Asia conference.
Despite global economic challenges, Modi said India was a “haven of macro-economic stability and a beacon of hope”, with the country boosting its growth projection for the fiscal year ending March 31 to 7.6%.
He said the Centre will push for the Start Up India programme for flourishing entrepreneurship in the country. “India is fourth in the world in the number of technical start-ups, after USA, Britain and Israel,” he said.
Meanwhile, IMF chief Christine Lagarde, who was also present at the conference, said “India’s star shines bright” amid global economic challenges and can deliver nearly two-thirds of the worldwide growth over the next four years despite a slowing momentum.The world’s fastest-growing large economy, she said, is on the verge of having the largest and youngest-ever workforce and, in a decade, set to become the world’s most populous country.
“So, India stands at a crucial moment in its history — with an unprecedented opportunity for transformation. Important reforms are already underway,” the IMF managing director said.