India dispelled myth that 'democracy, economic growth' can't go along: Narendra Modi

He said corruption and interference in the decisions of banks and regulators are now behind the government

Asserting that India is pursuing growth through co-operative federalism, Prime Minister Narendra Modi on Saturday said the country has dispelled the myth that democracy and rapid economic growth cannot go together.

"India has also shown that a large, diverse country can be managed in a way that can promote economic growth and maintain social stability. Our rapid economic growth is also very distinct in Asia. We have never tried to gain in trade at expense of our partners," Prime Minister Modi while speaking at International Monetary Fund-Ministry of Finance conference on 'Advancing Asia: Investing for the Future', said.

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"The entrepreneurship is booming in the country following a series of steps we have taken. We have achieved major gains in macroeconomic stability," he added.

Modi has said India has historically contributed to Asia in several ways, saying everybody wanted the continent to succeed.

He also said that corruption and interference in the decisions of banks and regulators are now behind the government.

Prime Minister Modi said that his government has increased investment in the rural and agriculture sector asserting that these are the sectors where a majority population nation resides.

"But our help to the farmers is not based on giving hand-outs as we aim to double farmer incomes," he added.

Modi in his speech also recalled India's 70 years old association with IMF.

Meanwhile, Christine Lagarde the Managing Director of the IMF, said it was a proud moment as India joined China and Japan in the list of the top 10 members of IMF, adding that it was "overdue".

"India in next decade may become the largest global economy in the world," Lagarde added.

IMF chief Lagarde and Finance Minister Arun Jaitley also exchanged MoUs to establish the IMF Assistance Centre in India.