India’s macroeconomic fundamentals are quite strong and its economy is currently growing at the fastest pace in the world, Union Home Minister Amit Shah said on Thursday.
Amit Shah’s positive assessment of Asia’s third largest economy came amid talks of a slowdown in economic activity.
Addressing a convocation ceremony here, the home minister said when the Narendra Modi government took charge in its first term in May 2014, the economy was in a shambles, but things have improved over the last five years.
“In 2014, when the Narendra Modi government was formed our economy was in a shambles. But today in 2019 I can say that our macroeconomic fundamentals are quite strong,” Amit Shah said, addressing the convocation of Pandit Deendayal Petroleum University here.
“Even today India is the fastest-growing economy of the world with around 7 per cent (GDP) growth,” Shah said.
Industrialist Mukesh Ambani, who is the promoter of the university, was present on the occasion.
“In the last five years, we have managed to keep the inflation rate below 3 per cent. While the fiscal deficit (gap between expenditure and revenue), which was at 5 per cent, has come down to 3.5 per cent,” Amit Shah said.
“Prime Minister Narendra Modi has said India should grow to be the third most advanced country in economic terms and for that we are moving ahead with micro planning,” he said.
The home minister said FDI (foreign direct investment) in India has also increased.
Amit Shah said India’s goal is to become a USD 5 trillion economy in the next five years and without contribution from the energy and petroleum sector, this goal can’t be achieved.
Shah’s statements came at a time when the NDA government has taken a raft of measures to revive economy.
These include relaxing FDI rules, releasing Rs 70,000 crore capital to public sector banks to boost credit to different sectors of the economy, receiving a large chunk of funds from the RBI and withdrawing angle tax for startups.
Addressing the graduating students present at the event, Anit Shah said they are starting a new innings where they will contribute in development of the country.
He advised them not to set small goals and always look at the bigger picture.