India Emerged as Engine of Global Economic Growth Under Modi Govt: BJP’s Gopal Krishna Agarwal

New Delhi, June 13, 2023 – In a press conference held earlier today, Gopal Krishna Agarwal, the National Spokesperson of the Bharatiya Janata Party (BJP), highlighted the remarkable progress made by the Indian economy under the leadership of Prime Minister Narendra Modi. Agarwal emphasized that India has become the engine of global economic growth, outperforming other major economies and attracting significant foreign investments.

One of the key points mentioned by Agarwal was the significant progress towards achieving a $5 trillion GDP. This milestone is a testament to the robust growth of the Indian economy, which has been the fastest-growing major economy in the world for two consecutive years and is expected to maintain this position in the upcoming year as well.

Agarwal also highlighted the successful management of inflation by the government, with retail inflation currently at 4.25% and food inflation at 2.91%. This achievement is particularly notable considering that India had previously faced double-digit inflation rates. The spokesperson further supported his statements by referring to the 7.2% GDP growth rate, as per the National Sample Survey Office (NSSO) data, and the 6.1% year-on-year GDP growth rate in the fourth quarter of the fiscal year, which contradicts claims of pent-up demand driving economic growth.

The Goods and Services Tax (GST) collection for April 2023 stood at an impressive Rs 1.87 lakh crore, despite a reduction in the average net GST rate to 11.6% according to a report by the Reserve Bank of India (RBI). Furthermore, direct tax collections reached Rs 16.61 lakh crore, indicating a 17.63% increase over the previous year, despite corporate tax reductions and higher exemptions in personal tax.

Agarwal also highlighted the strong performance of various sectors. The Purchase Manager Index (PMI) figures for the manufacturing and services sectors, standing at 57.2 and 62 respectively, reflect their expansionary mode. Additionally, the Index of Industrial Production (IIP) figure for April showed a robust growth rate of 4.2 in the manufacturing sector.

The spokesperson emphasized several major data points that indicate the strength of the Indian economy. These include FDI of $84.8 billion in the year 2021-22, exports crossing $770 billion in 2022-23, India being ranked third globally in terms of its startup ecosystem with 115 unicorns, and its leadership in fintech adoption and digital payments. Agarwal also mentioned the successful privatization of Air India, highlighting the government’s commitment to structural reforms.

Responding to concerns about future GDP growth, Agarwal expressed confidence that the Indian economy is moving in the right direction, with considerable momentum. He dismissed the narrative of pent-up demand and criticized economists and politicians who made doomsday predictions, stating that their claims have been consistently proved wrong.

The spokesperson attributed the success of the Indian economy to the leadership and vision of Prime Minister Narendra Modi. Agarwal highlighted the deleveraging of the economy and the strength of the banking sector, achieved through initiatives such as NPA resolution, the Insolvency and Bankruptcy Code (IBC), and capital infusion.

Furthermore, Agarwal drew attention to the international context, pointing out that major economies around the world, including the United States, are facing challenges such as inflation and recession. In contrast, India has demonstrated resilience and has emerged as one of the fastest-growing economies globally, attracting high levels of foreign direct investment.

Agarwal concluded by noting that global interest in India is growing, as it is widely recognized that the economic activity is shifting towards the country.