Fiscally imprudent policies, populism affect the poor: PM

Fiscally imprudent policies, populism affect the poor: PM

Fiscally imprudent policies, populism affect the poor: PM


Prime Minister Narendra Modi has warned against populism and irresponsible financial policies, claiming that while they may produce political results in the short term, they will have far-reaching social and economic repercussions that will primarily affect the “poorest and most vulnerable.”

Caution Against Irresponsible Financial Policies and Populism:

  • Modi issues a word of caution on the use of populism and reckless financial policies.
  • He notes that while such actions may result in short-term political benefits, they may also have negative social and economic effects that last for a very long time.
  • He makes special notice of how these effects will disproportionately hurt the weakest and most vulnerable members of society.

 Sensitivity to Neighbors’ Crises:

  • Modi emphasizes India’s sensitivity to its neighbours, using Sri Lanka’s current economic crisis as an illustration.
  • He promotes fiscal responsibility not just at the national level but also at the state level in India.

International Gatherings in India: 

  • In response to criticism from nations like Pakistan and China, Modi argues that India is diverse and large.
  • He says that given India’s size and variety, it is only natural that foreign gatherings and events take place throughout the country.

Climate goals and energy security:

  • Modi emphasizes India’s stance on energy security by supporting a variety of energy sources.
  • He highlights India’s commitment to attaining its climate targets while acknowledging that different nations have different approaches to achieving energy transition.

India’s Development Objectives: 

  • Modi is upbeat about the country’s chances for development.
  • By 2047, he expects India to be a developed nation.
  • His vision calls for a prosperous, inclusive economy that embraces innovation, the eradication of poverty, outstanding social sector outcomes, the absence of corruption, and a society that values both nature and culture.

 Debt Restructuring.

  • Modi emphasizes the significance of tackling debt vulnerabilities, particularly in the Global South. 
  • He said that India’s G-20 Presidency has made this problem a priority.
  • To assist in effective debt treatment, the IMF, World Bank, and the G-20 Presidency together launched the Global Sovereign Debt Roundtable.

Reform of international institutions: 

  • Modi emphasizes the necessity for international institutions to change to reflect the evolving world and its realities.
  • He advises that these organizations should increase the number of decision-making forums, reassess their priorities, and make sure that the voices that count are represented.

Global Economic Challenges and Inflation:

  •  Modi recognizes inflation as a major global problem.
  • He refers to G-20 meetings on the significance of central banks openly articulating their opinions on policy.
  • Given the interconnection of the food and energy markets, he also underlines the necessity for nations to exchange policy experiences in tackling food and energy price volatility.