India’s economy is likely to grow at over 8% next year, Prime Minister Narendra Modi said on Sunday, as he stressed on the need to enhance public investment to stimulate growth while delivering a strong message to leaders of the top 20 global economies.
Speaking at the G20 summit in Turkey, Modi said global economic growth remained weak with slowdown in many major economies, volatile financial markets and competitive devaluation of currencies.
“To stimulate growth, we need to enhance public investments, not just rely on monetary policy,” he said during his intervention at the G20 working session on Inclusive Growth: Global Economy, Growth Strategies,
Employment and Investment Strategies. “India’s economy is likely to grow at 7.5% this year and achieve a growth rate of 8% plus next year.”
India had reduced inflation as well as current account and fiscal deficits, said the Prime Minister. Its programmes of inclusive development, financial inclusion, universal access to basic needs, Make in India, Skill India, Digital India, Industrial Corridors and Smart Cities will boost growth and employment in the country, he emphasised.
“This will be a source of strength for the global economy,” he said.
The Prime Minister urged multilateral development banks to enlarge their capital base and support infrastructure needs of the developing nations and lauded institutions like the New Development Bank as welcome additional sources of financing.
“G20’s continued call to central banks for careful communication on monetary policy actions will be helpful in keeping financial and currency markets stable,” he said.
Modi said G20 efforts must be aligned with the UN Sustainable Development Goals adopted this year, particularly with the one to eliminate all poverty by 2030.
”We welcome the G20 focus on employment of women and on youth this year,” he said. “Stable long-term global economic growth requires not just capital flows, but also efforts to facilitate labour mobility and skill portability.”