Inflation has not spiked on the back of the rising crude oil prices, Prime Minister Narendra Modi said today while addressing the third annual meeting of the governors of the Asian Infrastructure Investment Bank (AIIB). The Prime Minister said the macroeconomic fundamentals of the country remain strong and the BJP-led government is committed to fiscal consolidation. Also Read - Regretting Error: Congress MP Anand Sharma Clarifies After Praising PM Modi's Visit to Vaccine Facilities
“Our macroeconomic fundamentals are strong with stable prices, a robust external sector and a fiscal situation firmly in control. Despite rising oil prices, inflation is within the mandated range,” he said. Also Read - PM Modi to Interact with Three More COVID-19 Vaccine Developing Teams on Monday
Modi also asked the AIIB for affordable and sustainable interest rates. It also said to expand its loan book by ten times to USD 40 billion by 2020 and USD 100 billion by 2025. Also Read - Agricultural Laws Gave Farmers New Rights And Opportunities: PM Modi Amid 'Dilli Chalo' Protest
Prime Minister said that the government debt to GDP ratio is consistently declining in the country. “India has achieved a rating upgrade after a long wait,” Modi said, adding India has emerged as a “bright spot” in the global economy, driving global growth with a USD 2.6-trillion GDP, that is expected to grow at 7.4 per cent this year.
“The external sector remains robust. Our foreign exchange reserves of over USD 400 billion provide us with adequate cushion. Global confidence in India’s economy is rising. Total FDI flows have increased steadily and India continues to be one of the top FDI destinations,” he said.
While making a strong pitch to attract foreign investors in the country, Prime Minister said that India is one of the most investor-friendly economies. Investors look for growth and macroeconomic stability. They want political stability and a supportive regulatory framework to ensure the protection of their investment.
He said that India is committed to making economic growth more inclusive and sustainable. He added that in India, we are applying novel Public Private Partnership (PPP) models, Infrastructure Debt Funds and Infrastructure Investment Trust.