After bypoll shock, Prez Pranab backs Modi govt in Vietnam

Ho Chi Minh City, Sept 17: President

on Tuesday had some words of praise for the new Indian government as he credited it for not only initiating steps to bring the economy on a better path but also for creating a "favourable" atmosphere for India across the globe.

The President, who abandoned his written speech for an extempore talk during the Indian community reception in this historic city of Vietnam, also lauded Prime Minister Narendra Modi for accomplishing a wonderful trip to Japan from where, he said, hopes of substantial foreign direct investment (FDI) are expected to be ploughed into India in the future.

"After the new government (led by Modi) came out with a massive mandate they also worked out...Of course, it is too early to formulate cogent policies for the full five years and get it reflected in the plan document and other documents but the first budget presented by the new government outlines some of the crucial policies and there is substantially continuity and there is change (in policy) where it has been found necessary to do it.

"One very positive aspect is that there is possibility of substantial FDI which was an important outcome of the Prime Minister's visit to Japan. And it is expected that in the next five years, investment from Japan would be around USD 25-35 billion.

"Also, we had a very good interaction with the Australian Prime Minister during his visit to India in the last week. Our Prime Minister is expected to have detailed interactions with US President Barack Obama and therefore the international atmosphere is favourable and I am (also) visiting Vietnam at this juncture when two fastest growing economies - India and Vietnam - are also engaged in having cooperation and interaction," he said.

The President also praised Petroleum Minister Dharmendra Pradhan, the lone representative of the Modi cabinet on this four-day state visit, for taking steps for bringing down the prices of crude oil.

"I can congratulate Mr Dharmedra Pradhan because after assuming the office of the Petroleum Ministry, he has brought good luck to the petroleum (sector) in the sense that now the petroleum prices have come down to USD 93 per barrel and the prediction is that it will go further down. Unfortunately, when I was the Finance Minister, I did not have that privilege of buying petroleum less than USD 112-115 per barrel," he said evoking a thunderous applause from the audience.

PTI