Prime Minister Narendra Modi on Wednesday addressed company secretaries from all over India at a programme to mark the golden jubilee year of Institute of Company Secretaries of India (ICSI) in Delhi.
While addressing a gathering, Modi said that after demonetisation, cash to GDP ratio has come down to nine per cent. He said that before November 8 last year it was 12 per cent. Modi also said,''During previous government's rule, in 6 years 8 times such an opportunity came when the growth rate fell below 5.7 percent.''
Modi added,''The economy of the country has also seen quarters when the growth rate fell below 0.2 percent, 1.5 percent. There are some people who sleep well only after they spread a feeling of pessimism all around. We need to recognise such people.''
The Prime Minister also said,''After achieving average growth of 7.5% over 3 years, we accept that growth rates came down April-June but govt is committed to reverse it.''
''Government is ready to rake tough decisions which will take economy on the path of development,'' Modi said at Golden Jubilee Year of Institute of Company Secretaries of India at Vigyan Bhavan.
Talking about growth the prime minister said that the Reserve Bank of India has predicted a growth of about 7.7 per cent in the coming quarters. Modi's defence came on a day the Reserve Bank of India (RBI) lowered its growth forecast and decided to keep the key repo rate unchanged for fears of stoking inflation.
''The number of air passengers has gone up by 14 per cent in the past two months. The sale of telephones has also seen a growth of 14 per cent. Sale of tractors has gone up by 34 per cent,'' Modi said.
Modi also said,''This is a time of big transformation and the importance of honest and transparent governance is being realised. The government understands the value of your hard earned money very well, and our policies and schemes are focused at bettering life of the poor and middle class.''
What does cash to GDP ratio mean?
The cash to GDP ratio or to be more accurate the Debt to GDP ratio refers to the ratio between the public debt incurred by the government to its GDP. The debt is a cumulative amount i.e. the sum of all the amounts added together whereas the GDP is measured in years.
Current GDP of India is $2.264 trillion which is 147 lakh crore INR.
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