Piyush Goyal On 11 Years Of Modi Sarkar

In the last 10-15 days, this is perhaps the third or fourth country you've been in, as far as the investment potential of India is concern.

 

PIYUSH GOYAL, UNION MINISTER

 

- Well, if you look at the last two weeks, this is probably seventh country that I am visiting. 

 

- And in the last month or so, seventh country in the last one month. And the reception we are getting is unbelievable. Prime Minister Narendra Modi, in the last 11 years, has taken the country from a fragile five economy to a top five country. 

 

- While you are all aware of all the macroeconomic parameters that have been strengthened in the last 11 years, while you are all aware of the outstanding progress India has made, the Indian economy has made, the work that's happened to reduce extreme poverty, you saw the last numbers come out two days back. 

 

- Poverty has come down to a single digit, barely five percent, under Prime Minister Narendra Modi's leadership in the last, say, 11 years. I'll give you one very interesting data point. The Indian government was borrowing in the financial market on a 10-year maturity government bond in 2014 at 9 percent. 

 

- In 2014, Indian government was borrowing at 9 percent. And at that point of time, the US government could borrow the treasury bonds of a 10 percent. 10-year maturity, similar, were at 2.7 percent. So delta is almost 6.3 percent between the U.S. 

 

- Borrowing costs and Indian borrowing costs. Today, India's 10-year bond sells at 6.28 percent. The U.S. 10-year treasury, 10-year maturity treasury borrowing, is at 4.5 percent. So gap is reduced to 1.78 percent. 

 

- What does this story tell you? In fact, a very senior economist, and many of you may have heard of Christopher Woods. Christopher Woods is on record, the Jeffries analyst. And I'll quote, "indeed, it is no longer unthinkable that the 10-year Indian government bond yield will trade below the 10-year Treasury bond yield". 

 

- I remember when Christopher Woods had said that the Indian stock market is the best-performing stock market in the world, or when Mark Mobius said that he would like to put all his money into the Indian stock market. 

 

- Many even in the Indian media, and certainly most in the Indian opposition, who are totally no-sayers all the time, ridiculed the proposition. Today the world recognizes that we are the best-performing economy, year after year. 

 

- Siddharth you will recall, 2014, the Nifty was at 5,700 at best, possibly a little less than that when we came into government. 2014, Nifty at 5,700, as we celebrate today, 11 years of the Modi government, Nifty has crossed 25,000. 

 

- What does this tell you? Which market in the world gives you a return which is almost 5x in 11 years? The world today recognizes we are not only as the world's fastest-growing large economy, the best place to do business, but under the decisive leadership of Prime Minister Modi, India is the most preferred investment destination. 

 

- Recognizing quality and good manufacturing practices, including sustainable manufacturing, India is a preferred source for provision of goods, India is a preferred destination to provide quality manpower, talent and skill, India is the preferred destination for services, India is the preferred destination to visit.