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.''
GDP growth rate over the years. pic.twitter.com/YjkW9LUeJr— PMO India (@PMOIndia) October 4, 2017
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 adding there has been an increase in auto sales, air traffic, air freight and telephone subscribers. 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.
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.''
About business inconveniences caused by GST, he said that he had instructed the GST council to review the problems being faced by traders and that they were willing to make changes as per the suggestions.
Defending demonetisation, Modi said it proved that the country could run normally with less cash. He also hailed note ban as the death knell to black money, which has long been the country's scourge.
"We made strict black money rule...Demonetisation a great success... Hoarding black money is not an easy task anymore."
Modi told company secretaries that their honest advice can make a big difference to the country's corporate governance. "It is you who determine corporate culture. It's your organisation's duty to show people the right path," he said.
Company secretaries had a big role to play in keeping the country on the right track, Modi said. He also urged them purge the bad eggs, invoking a Sanskrit sloka that says, "Setting fire to one single tree is enough to burn the whole forest down."
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.