Growth of 5.7 Per Cent in Q1 Has Generated Huge Positive Sentiment: PM Modi

Tokyo: Encouraged by economic growth of 5.7 per cent in the first quarter of financial year 2014-15, Prime Minister Narendra Modi on Monday said it has generated a "huge positive sentiment" while exhorting Japanese businessmen to invest in India.

Highlighting the achievements of the 100 days of his government, Mr Modi said one of the major initiatives of the new regime was further opening of the FDI rules which too was being widely appreciated by the investors.

The Prime Minister said this while addressing the a luncheon meeting hosted by Nippon Kiedanren - the Japanese Chamber of Commerce and Industry, and the Japan-India Business Cooperation Committee in Tokyo.

"The GDP growth of 5.7 per cent in the first quarter of 2014-15 has generated a huge positive sentiment," he said. Improved performance of mining, manufacturing and services sector pushed India's economic growth rate to two-and-half-year high of 5.7 per cent in the April-June quarter and the government expects the trend to continue in the remaining fiscal year.

India's economy had recorded a subdued growth of 4.7 per cent in the April-June quarter last fiscal year (2013-14). The previous high was recorded at 6 per cent in the October-December quarter of 2011-12.

Mr Modi further said that the clear mandates received by the governments of both India and Japan, and the political stability they had generated, would deliver a strong push to bilateral ties.

In order to encourage Japanese investments, a special management team would be set up directly under the Prime Minister's Office.

He said two nominees selected by Japan would also be part of the decision-making team which evaluates business proposals and assured Japanese businessmen and investors of policy-driven decisions to eliminate delays.