Debt crisis matter of great concern for world: PM Modi ahead of G20 Summit

PM Narendra Modi cautions against 'irresponsible' financial policies

Stressing the need for financial discipline, Prime Minister Narendra Modi has reiterated that "irresponsible" financial policies and populist measures may give political results in the short term but will extract a "great social and economic price" in the long term.

Modi made these remarks in an interview to PTI late last week while answering a question about the global debt crisis -- which, he noted, is “a matter of great concern for the world, especially (for) developing countries”.

In remarks that came ahead of the G20 summit here, The prime minister said countries that are going through debt crisis or have gone through it, have begun to give greater importance to financial discipline.

Modi said he has urged state governments to be conscious about financial discipline.

"Whether it is in the National Conference of Chief Secretaries or any such platform, I have said that irresponsible financial policies and populism may give political results in the short term but will extract a great social and economic price in the long term," Modi said, as he cautioned against politics based on populist measures.

"Those who suffer the consequences the most are often the poorest and the most vulnerable." Modi also spoke about how the political stability seen in India in the last nine years has led to several reforms in economy, education, banking and financial sectors, saying growth was its "natural by-product", as he outlined his vision for the country for the next two decades.

With his government approaching the end of its second term, the prime minister said before 2014, the country saw many governments that were unstable and therefore, unable to get much done.

"But in the last few years, the people have given a decisive mandate, which has led to a stable government, predictable policies and clarity in the overall direction," Modi said.

"By 2047, I am sure that our country will be among the developed countries. Our economy will be even more inclusive and innovative. Our poor people will comprehensively win the battle against poverty. Health, education and social sector outcomes will be among the best in the world. Corruption, casteism and communalism will have no place in our national life." Modi also noted that the rapid and sustained progress made by India has evoked interest across the world.

Many countries have been watching our growth story very closely and are convinced that this progress is not an accident but is happening as a result of a clear, action-oriented roadmap of ‘Reform, Perform, Transform', he said.

For a long time in world history, India was one of the top economies of the world but later, due to the impact of colonisation of various kinds, our global footprint was reduced, he added.

"But now, India is again on the rise. The speed with which we jumped five spots, from the 10th largest economy to the fifth largest in less than a decade has conveyed the fact that India means business!" he added.

Emphasising that the period till 2047 is a "huge opportunity", he said Indians living in this era have a great chance to lay a foundation for growth that will be remembered for the next 1,000 years! Modi also asserted that the quality of life of Indians would be on par with the best countries of the world and "most importantly, we will achieve all of this while caring for both nature and culture".