Prabhu backs PM Modi's claim of making India a USD 20 trillion economy

Union Railway minister Suresh Prabhu said on Saturday that India can be a 20 trillion dollar economy if it continues to grow at nine percent.

Addressing the ET Global Business Summit here, Prabhu said, "states also need to do their bit for India's economic growth".

He also said investments needed to be made in the railways if a deterioration of services was to be avoided.

On Friday, Prime Minister Narendra Modi had said that his government will change rules and initiate reforms at top speed to make India a 20 trillion dollar economy from its present two trillion dollars.

Addressing the business summit, Prime Minister Modi said reforms would take place in key areas such as infrastructure, taxes and subsidies, and an effort would be made to cut down multiple clearances that choke investment.

He said transparency and efficiency in governance, and institutional reforms are essential for rapid growth and the new government is moving fast in designing policies and laws to promote it.

He said the setting up of the National Institution for Transforming India (NITI) Aayog, is a step in the direction of major institutional reform in the country which will create trust and partnership between the Centre and States.

Prime Minister Modi said infrastructure is being given a boost and new approaches and instruments are being put in place to attract greater investment in sectors like railways and roads.

He said the schemes like 'Jan Dhan Yojana' will pursue to get the poor included in the financial system.

The Prime Minister also talked about a massive national programme for computerisation of public distribution system. He said subsidies are needs of the poor and there is a need to cut leakages in the process.

He said the government will introduce direct cash transfers in different schemes apart from cooking gas subsidy while stating that the cash subsidy transfer to users of cooking gas is the world's largest cash transfer programme.

He also stressed need for nurturing an atmosphere where the economy is primed for growth and in turn all-round development.

Reforms, he said, must have a concrete objective to ensure the welfare of the people and added that development should be employment generating and the employment enabled by skills.

Prime Minister also reiterated Centre's commitment to achieve the fiscal deficit target announced in the budget.