PM reiterates need to 'add more momentum' to reforms at EAC meet

NEW DELHI: Prime Minister Narendra Modi on Saturday met members of the Economic Advisory Council and for the second straight day underlined the need for further reforms.

"Chaired a meeting of the Economic Advisory Council to the Prime Minister. Deliberated on a wide range of issues relating to India's economic transformation and long-term development priorities. Also shared perspectives on adding more momentum to the reforms journey and ensuring 'Ease of Living' as well as 'Ease of Doing Business'," he wrote on social media.

Hours after the GDP numbers were released on Friday, Modi had underlined the need to make life easier for citizens and businesses. A few weeks ago, reforms across ministries were the main focus of talks during a meeting of the council of ministers.

Although he had signalled his govt's intent to unleash what was described as "Reforms Express", the repeated emphasis comes amid global headwinds that are expected to impact economic activity. Govt officials say economic activity so far has held steady, as evidenced by the fourth-quarter GDP growth of 7.8% - the highest among major economies - despite the West Asia conflict.

Data from across industries - from auto to cement, purchasing managers' index, e-way bills and GST collections - indicate the momentum has continued into the current financial year as well. MGNREGA work demand fell to -35.5% in April, extending its 10th consecutive monthly decline.

While some of the FMCG players had reduced pack sizes anticipating a slowdown in demand, consumer activity indicates that purchases have not been hit, and in certain segments, it has picked up. But the Centre is keeping all policy tools ready as it seeks to deal with the prospect of a weak monsoon, which could dent demand and fuel inflation in certain segments. RBI and govt's assessment is that inflation will remain within the tolerance band.