Modi’s speech before an audience which included business leaders, central bank governors and minsters who are in Mumbai to attend the two day conference here. Modi boasted about keeping inflation under control despite higher oil prices in front of global audience, attempting to calm investor anxiety that he may take to fiscal profligacy ahead of a general election due in 2019.
“India has emerged as a bright spot in the global economy. Our $2.8 trillion economy if the 7th largest in the world and third largest in terms of purchasing power parity (PPP). The Indian economy grew at 7.4% inthe fourth quarter of 2017 and is expected to grow at the same rate in 2018. Our macro economic fundamentals are strong, fiscal is in control, external sector is robust and inflation is in the mandated range. The government is committed to the path of fiscal consolidation,” Modi said.
Finding funds for infrastructure remains a challenge for the country which by government estimates requires $4.5 trillion investment in building public infrastructure until 2040. Multilateral agency AIIB started operations in January 2016 and has already committed to invest $4 billion in financing infrastructure projects in different Asian countries.