NEW DELHI: Prime Minister Narendra Modi on Friday vowed to push through change at a fast pace but said subsidies should be continued to protect the interests of the poor.

Addressing the Economic Times Global Business Summit, the PM struck an optimistic note to say, "The New Age India has begun its transition, from a winter of subdued achievement lasting three to five years, to a new spring that beckons."

He referred to the challenge the government faces in repairing the damage to the economy under the previous regime, but asserted that efforts to rev the growth engine would succeed. "It will take hard work, sustained commitment and strong administrative action. But we can overcome the mood of despair," Modi said as he unveiled a comprehensive agenda to revamp the economy.

In his welcome address, Times Group managing director Vineet Jain said India could become the second engine of the global economy, which is currently flying on only one, the US. He said the Modi government had hit the ground running, enacting major reforms, resisting the obstruction of the opposition.

Jain said the country needed more liberal policies in education and healthcare. "These are essential aspects of India's soft power, and have not been addressed for decades," he said.

Raj Jain, CEO of Times Group flagship Bennett, Coleman & Company Ltd, said the government had undertaken a slew of reform measures and expressed hope that the 2015-16 budget would be "impactful".

Listing the measures taken by his government, the PM said, "Improvement in governance is a continuous process. We are making changes wherever acts, rules and procedures are not in tune with needs."

"We are cutting down on multiple clearances that choke investment. Our complex tax system is crying for reform, which we have initiated. I believe in speed. I will push through change at a fast pace. You will appreciate this in times to come," the PM said in remarks which are being seen as a roadmap of his reform agenda.

The PM defended subsidies, saying they were needed for the poor, but also asserted that their ultimate objective should be the welfare of the needy. "We need to cut subsidy leakages, not subsidies themselves," he said in his 45-minute speech.

"The ultimate objective of subsidies should be to empower the poor, to break the cycle of poverty, and become foot soldiers in our war on poverty," the PM said.

The PM also said the government plans a massive national program for computerisation of the public distribution system. "The entire PDS supply chain, from the FCI godown to the ration shop and consumer will be computerised. Technology will drive welfare and efficient food delivery," Modi said.

Modi said the government was committed to achieving the fiscal deficit target announced in the budget. "We have worked systematically in this direction," he said weeks before the 2015-16 budget, signalling the government's commitment to repair the health of state finances.

However, he also made it clear that the pursuit of fiscal discipline would not be at the expense of the pro-poor orientation of his policies as he spelt out after he was elected the leader of BJP parliamentary party. "This government will be that of the poor," Modi had said. He took off from where he had left in May last year as he said, "Economic development cannot take a nation forward on its own. We need a society and economy which complement each other. We need to take care of the poor, deprived and sections which have been left behind."

"Reforms are not an end in themselves. Reforms must have a concrete objective. The objective must be to improve the welfare of the people," he told an audience of top economists, businessmen, diplomats and bureaucrats.

Modi said the government was preparing the ground for India to be a $20 trillion economy in the years ahead. "This is hard work. Quick and easy reforms will not be enough for creating a fast growing economy. This is our challenge and that is what we aim to do," he said.

Outlining some of the measures to boost growth and improve governance, Modi said thousands of railway stations in the country where not more than one or two trains stop in the day could be used as growth centres for nearby villages and used as centres for skill development using technology.

He said government systems need to be sharp, effective, fast and flexible and this would require simplification of processes and having trust in citizens. "What is maximum governance, minimum government? It means government has no business to be in business," Modi said.

Source: TOI