Good economics makes for good politics: Goyal

Posted On Apr 19, 2021 By admin With Comments Off

Times Network India Economic Conclave 2021 –Piyush Goyal, Railways Minister, says that India’s resilience can be seen in every amble of life and going forward, India will be a solid pillar on which nature financial resurrection and proliferation will happen. Edited excerpts: Navika Kumar: In June last year, you said that the govt was preserving a close watch on Chinese speculations. Are you continuing the same or has the disengagement process too wanted a change of our stand on financings from China? Piyush Goyal: I don’t think that the two things were relation in any way directly. The struggle was to make sure that worthwhile investment comes into India, where money can be very clearly identified. It was to be fully aware of the source of money coming in the country, the kind of companies that are investing since some of such investments are also among affiliated to military task or ownership, I think it was in the strategic interest of India to know exactly where the money comes from.When you are dealing with opaque economies, it is very important to be careful and to keep a watchful eye. However, if you are dealing with very transparent financial markets, like those in Europe, UK or in the US, Canada, Australia, the systems themselves are so robust and translucent that you need not have concerns about them.Navika Kumar: Has India been able to reap the advantage of the growing wariness of the world vis-a-vis China. Was India being seen as an alternative destination to China by the world? Piyush Goyal: I think we should move beyond the narrative of becoming an alternative to another country. We should look at the positive narrative that we are trying to set of being the primary marriage of business, businesses and countries around the world. India, afforded its republic, rule of law and multilateral participation is looked at, as a trusted marriage and almost all supply orders today look back at countries which are resilient, countries which are honest in their businesses and administers, where the legal rules persists so that they have honest system of doing business. The significant reforms that India has undertaken in the last year peculiarly, and in the last few years are clearly promotion position India as the primary focus of investments from around the world. The current aatmanirbhar bharat program supplements a lot more to that narrative, specially the fact that for the first time, India is trying to prepare domestic manufacture in terms of quality, productivity, cost efficiency competitiveness. So, we believe that on our own merits, on the merits of the case of the possibilities of our young contemporary, skills that India retain, national resources, I think it is the merit of India that will offset us not a counterpoint to some other country but the primary destination that businesses and countries will look to engage with.Navika Kumar: How is it that a country like Bangladesh–has China as its largest transactions partner, and not India, when you say that India has enormous affinity with countries that it shares perimeters with? Piyush Goyal: Well, clearly Prime Minister Modi has had a continuous commitment and outreach with all our neighbours. If you can recall, in the very first swearing-in ceremony in 2014, Prime Minister Modi had invited all the heads of state of SAARC countries to participate in the ceremony. It was a big message given out and ever since then we have been working relentlessly to build up stronger relationships with all our neighbouring countries. I repute the effort that was required to develop more competitiveness delivers more quality to the products and services that we can offer to our neighbours, the process has been ongoing and it has helped us expand our trade with countries like Bangladesh and I are certain, that going forward, we will be in a position to overtake China in their commitment with Bangladesh. Navika Kumar: How are we going to end this entire year in terms of FDI and has the pandemic had any impact on it? How are we looking at the next fiscal as far as FDI is concerned? Piyush Goyal: For FDI, it will be record year despite Covid and the fact that all international statistics suggest that foreign investments across the world are going to significantly fall in current months, in fact in 2020 it precipitated vastly from previous tiers. India was amongst the rare countries which ascertained growth in FDI in given fiscal year 2021. India renders a very good investment destination, a large market of 135 crore Indians aspiring for a better quality of life and an enabling environment in which investors are enjoying both good returns on their speculation, great market and thus too facilitating India in its development objectives therefore, in terms of FDI, I have absolutely no doubt it will be a record year. I would like to share one other data point which will be heartening to note; in the Indian Railways, we have lost out enormously on passenger traffic due to Covid, but in terms of shipped, which is a very important element in adjudicate the economic resurrection, you will be delighted to note that since September 2020 – Feb 2021, for the last six months, we have seen the highest loading in its own history of Indian Railways, every month from September to February. After March, we will definitely be transcending last year’s loading in terms of freight.Navika Kumar: Is that a by-product of the high petroleum prices and somehow unexpectedly as if with a spell rod come to a standstill and then begin to decline during elections? Piyush Goyal: The reality is the rise in petrol or diesel rates is a very recent phenomenon. I am talking about the swelling which started picking up from September, so clearly there is no linkage between the two.Navika Kumar: Are you saying that politics is no longer your plan as far as economics is concerned or is fiscals ever the purposes of the politics? Piyush Goyal: If I recall correctly, I have said this before that is still ever was a notion in India that good financials does not make for good politics. I anticipate Prime Minister Narendra Modi who, as you are all aware, is today India’s longest function master in a high constitutional standing in terms of being chief minister and prime minister for over 19 times. For all those times, he has consistently proven that good fiscals realise for good politics also. The people of India are smart-alecky, the person or persons of India understand what is good for them, they determine the intention of the leader, integrity of purpose, identify his commitment, encounter his hard work to draw India once again regain that lost glory and therefore good economics with a good objective will certainly make for good politics and we have no doubt that many decisions which may seem difficult to implement initially, which may face a lot of resistance in the initial months or years, will ultimately appeal to the people when they realise the good that they can get out of our decisions.