Modi promises more measures to control inflation, Vishwakarma scheme for workers

New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Tuesday promised more measures to rein in rising food prices, and said a new scheme with up to Rs 15,000 crore outlay will be launched next month to boost livelihood opportunities of carpenters, barbers and other such people engaged in traditional professions.

Modi reiterated his prediction of India becoming the third largest economy in the world in his third term in office and said the country will be counted among developed nations when it celebrates its 100th year of independence in 2047.

“We have to take more steps to minimise the burden of inflation to the people of the country,” Modi said in his Independence Day address from the ramparts of the 17th-century Red Fort here. “And we will definitely take steps. Our efforts will continue.”

His remarks came a day after official data showed retail inflation, which is the measure of change in retail prices of goods and services that households pay for their daily consumption – rose to its highest in 15 months in July mainly because of a surge in food and vegetable prices.

Retail inflation at 7.44 per cent in July compared with 4.87 per cent in the previous month.

Last week, the Reserve Bank of India (RBI) had while continuing a pause on interest rates, raised its inflation forecast for the current fiscal year to 5.4 per cent from 5.1 per cent earlier. In the September quarter, it now sees inflation at 6.2 per cent, higher than 5.2 per cent it had forecast previously.

In his last Independence Day address before the general elections next year, Modi said his government had taken several measures to contain price rise.

While the government-controlled oil companies held on to retail petrol and diesel prices despite a spike in cost, fertiliser continues to be heavily subsidised.

“Compared to the previous period, we have also had some success (in controlling inflation), but we cannot be satisfied with that… We have to take more steps to minimise the burden of inflation on people. We will take those steps. Our efforts will continue,” he said.

He also recounted welfare measures of his government – from easy loans for small businesses to cash dole to farmers.

“Today, the world is facing an inflation crisis. Inflation has gripped the economies around the world. We also import goods and it is unfortunate that we also end up importing inflation,” he said.

India is 85 per cent dependent on imports for meeting its oil needs. It also imports roughly half of its natural gas needs as well as a host of consumer electronic goods.

Prime Minister announced that a mega scheme, called Vishwakarma Yojana, with an outlay of Rs 13,000-Rs 15,000 crore, will be launched next month to help carpenters, goldsmiths, mason, laundry workers, barbers and other people engaged in such traditional professions.

The scheme, mainly benefiting people belonging to the Other Backward Classes (OBC) category, will be launched on Vishwakarma Jayanti which falls on September 17, he said.

He said the various schemes ranging from housing for the poor, provision of Rs 50,000 crore to street vendors through the PM SVANidhi scheme, and many more such programmes have aided 13.5 crore people to rise above the hardships of poverty.

A full-majority government for two successive terms has helped unleash an array of reforms – from digital payments to developing startup ecosystem, checking leakages in the delivery of government benefits to people, Rs 2.5 lakh crore given to farmers under PM Kisan Samman Nidhi.

Besides, there have been feats like raising income tax exemption limit, the world’s cheapest mobile internet data tariff, providing electricity to 18,000 villages, opening bank accounts for unbanked, building highways and airports, and supporting small and medium entrepreneurs.

“When we came to power in 2014, we were at number 10 in the global economy and today India is the fifth largest economy in the world,” Modi said. “And I assure you that in the coming five years, it is Modi’s guarantee that the country will take its place in the first three economies of the world.”

India, he said, is now pursuing ambitious renewable energy targets and working on green hydrogen which will help decarbonize the economy.