Inflation Is A Global Issue Which Needs Close Cooperation, Says PM Narendra Modi

PM Modi Interview: The Covid-19 pandemic and the ongoing geo-political conflict have changed the global inflation dynamics, says Narendra Modi

Narendra Modi Interview: Prime Minister Narendra Modi has said that inflation is a global issue which needs close cooperation from all corners. Modi, in an exclusive interview to Moneycontrol, noted that inflation is a key issue which the world is currently facing. The prime minister while responding to a question on inflation in most countries, including India, said the Covid-19 pandemic and the ongoing geo-political conflict have changed the global inflation dynamics. "As a result, both advanced countries and emerging economies are facing high inflation. This is a global issue that needs close cooperation,” Modi observed.

Ahead of the G20 World Leaders' Summit in New Delhi later this week, the prime minister said that there was a meeting of G20 Finance Ministers and Central Bank Governors. “This forum has recognised that there is a need to ensure that policies taken by each country to combat inflation do not lead to negative repercussions in other countries. Further, for this, there is an understanding that timely and clear communication of policy stances by Central Banks is crucial,” he said.

On Inflation

While on the India inflation issue, Modi said that as far as India is concerned, the government has taken a number of measures to curb inflation. He said, “Even in the face of adversities and global dynamics, India’s inflation was two percentage points lower than the global average inflation rate in 2022. Yet, we are not resting at that and are continuing to make pro-people decisions to boost ease of living. For example, recently on Raksha Bandhan, you saw how we reduced the prices of LPG for all consumers.”

India, The Fifth-Largest Economy 

India, which is now the fifth-largest economy in the world, is projected to become the third-largest economy in 2027. When asked about the implications for G20 and for the rest of the world of a stronger and more prosperous India, Modi said that India becoming the fifth-largest economy in the world is indeed something very important. “The way our country did it, I think, is as important. It is a feat achieved because there is a government that is trusted by the people and in turn, the government too trusts the capabilities of the people,” he noted.

During the interview, the prime minister said the people have placed unprecedented trust in the government which is a privilege and honour. He pointed out, “They (people) gave us a majority mandate not just once, but twice. The first mandate was about promises. The second, even bigger mandate, was about both performance and the future plan we had for the country. Due to this political stability, every other sector could see deep structural reforms. The economy, education, social empowerment, welfare delivery, infrastructure – I can keep on mentioning sectors that have seen reforms."

Foreign Direct Investments

Modi also mentioned about foreign direct investments (FDIs) into India. The FDIs are breaking records year after year, export records are being broken in both services and goods, Make in India has taken off with great success across sectors, start-ups and mobile manufacturing have done wonders, infrastructure creation is happening at a pace never seen before and all of these adding up to a huge number of job opportunities for our youth, he said. “The benefits of growth are being taken to the last mile. A comprehensive social security net protects our poor while the government is assisting them at every step in their battle against poverty. With over 13.5 crore of our people coming out of multidimensional poverty in just five years, an aspirational neo-middle class is taking shape and this section of society is poised to push growth even further," Modi told the interviewer.

Women Are The Driving Force

According to the prime minister, women are emerging as the driving force of the country’s growth journey. He said that women can be seen in several development initiatives. “From space to sports, start-ups to self-help groups, every sector that is on an upswing is seeing women taking the lead. With the G20, now, the message of women-led development is making waves all over the world – this is the power of Indian women. The cumulative momentum building up from the empowerment of the poor, youth, women and farmers will certainly make India one of the top 3 economies of the world in the near future,” Modi stated.

While concluding, the prime minister said that India’s growth is not only good for Indians but also for the world. “India’s growth is clean and green growth. India’s growth is being achieved with a human-centric approach that can be replicated in other countries too. India’s growth helps further the interests of the Global South. India’s growth helps bring a sense of reliability and resilience to the global supply chain. India’s growth is for the global good,” he added.