- India negotiated trade pacts from strength in manufacturing, services, and SMEs, PM Modi has said
- Political stability and predictability have restored investor confidence in India, he has said
- PM Modi has criticised UPA-era economic mismanagement, saying it had weak negotiation positions
Prime Minister Narendra Modi said today that India has been able to negotiate trade pacts from a position of strength because of its strength in manufacturing, service sector and Small and Medium Enterprises. Speaking on the ongoing Free trade Agreements in an exclusive interview with news agency Press Trust of India, he also said, "Political stability and political predictability had restored investor confidence in India".
"These trade agreements may have happened recently, but they are the outcome of a more competitive domestic industry, a confident approach and an open outlook. These are rare qualities in today's world," PM Modi said.
"We led an economic resurgence through our policy-driven governance, strengthened our economic fundamentals and created a rules-based system. When we ensured political stability, policy predictability and a reform-oriented approach, the world wanted to invest in India," PM Modi said.
"Our reforms helped both our manufacturing and service sectors and encouraged productivity and competitiveness among our MSMEs. As a confident, competitive and fast-growing economy, many nations saw the benefits of pursuing trade agreements with us," he added.
India and the six-nation bloc of Middle Eastern nations -- the Gulf Cooperation Council (GCC) -- has already inked terms of reference to formally launch negotiations for Free Trade Agreement. With it, the government has finalised as many as nine trade pacts in the last few years, covering 38 developed nations, the government has said.
Slamming UPA-era "economic mismanagement," PM Modi said back then, India had been unable to negotiate from a position of confidence. "During the UPA rule, talks would begin and then break down. A little real substance was achieved despite long negotiations," he added,
As for the NDA government, he said its commitment is to reform - which it has shown in letter and spirit.
The private sector, PM Modi also said during the interview, must focus less on protecting margins and invest aggressively in R&D supply chain and quality. At the same time, as productivity rises, the owners must share gains fairly with workers.
"The next leap to Viksit Bharat will depend on bold investment by the private sector in innovation, long-term capacity and global competitiveness," he added.
