Dips will be bought by FIIs who have emerged as sustained buyers. The continuous decline in US bond yields (the 10-year yield is now below 4.20 per cent) will ensure FII buying, he said.
As the Centre’s three-phase unlock plan kicked in after the end of the fourth phase of the national lockdown on Monday, Prime Minister Narendra Modi on Tuesday said India took the right steps at the right time and exuded confidence that the country will definitely get its growth back.
PM Modi was addressing the annual session of top industrial body, the Confederation of Indian Industry (CII), his first speech on economy since the country entered Unlock 1.0.
He said, on one hand today, the government has to fight the deadly Coronavirus. while on the other, it has to stabilise and speed up the economy.
“In this situation, the CII has started the talk of ‘Getting Growth Back’, he said, but asserted that he would rather say “Yes ! We will definitely get our growth back.”
The Prime Minister said that the Coronavirus may have slowed the country down, but in reality, India has entered Unlock 1 and getting growth back has already started.
“I have faith in India’s innovation, industry leaders, all of you. India will get its growth back,” he added.
The Prime Minister further said that strengthening India by strengthening economy amid COVID-19 fight is among the government’s highest priorities.
He said to bring India back on track for fast-paced growth, five things are very important, which are “Intent, Inclusion, Investment, Infrastructure and Innovation”.
“For us, reforms means having the courage of taking bold decisions and then ensuring that it is implemented in a time-bound manner. We have been working continuously to create a favourable ecosystem for investment and business.”
Prime Minister Narendra Modi, in his address, said the Government is trying to maximise opportunities for micro, small and medium enterprises (MSME).
Asserting that MSMEs are the engines of India’s overall growth, PM Modi said, “We all know how MSMEs are key to India’s economy. But for a long time there had been a need to define MSMEs and increase its scope to allow it to row. That has now been done. The decisions taken on MSMEs will be the fuel that will power the sector to grow exponentially.”
He further stated that getting growth back is “not that difficult”. He said the most important thing for indutrial units is to have a clear path – “a path paved by a ‘self-reliant’ India”.
PM Modi also called for the need to develop more and more “Made in India” products that are “made for the world”. “We have to focus towards reducing imports,” he added.
He said the private sector is a big partner in ensuring India’s growth.
“Develop concepts, think big, and together we will build a self-reliant India. We can do it. If you have the belief and do your bit, and we do ours, then India will rise to be a key business player globally,” the Prime Minister said while addressing the CII Annual Session 2020.
He said the rest of the world holds India in high regard and has trust in the country. “The world is looking for a trustworthy partner. India has the potential and capability to ensure that we are that partner,” he added.
“We will take structural reforms that will change the course of the country. We will together build self-reliant India,” PM Modi concluded.
Prime Minister Narendra Modi’s address on economic growth comes a day after he chaired a Union Cabinet meeting, wherein the Centre approved Rs 20,000 crore subordinate debt for stressed MSMEs.
Union Minister Nitin Gadkari informed that the Cabinet has approved modalities and road map for implementing two packages for MSMEs – Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds.
Further widening the definition of micro, small and medium enterprises, the Union Cabinet on Monday announced that entities with turnover up to Rs 250 crore or investment up to Rs 50 crore will qualify as medium enterprises.
Under the Aatmanirbhar Bharat package, the government has done away with the distinction of services and manufacturing MSME.