Ratan Tata: Support Narendra Modi government's steps to reboot economy

NEW DELHI: On the day the government took key steps, including extension of reduced excise rates for auto and consumer goods besides hiking of paddy MSP, leading industrialist Ratan Tata said the country needs to support the Narendra Modi government's moves to reboot economy.

"The nation voted for change. We need to stand together to support the new government's actions to re-build economic growth and prosperity in India," Tata, the Chairman Emeritus of diversified conglomerate Tata group said on microblogging site Twitter.

His comments came when the government, in a farmer-friendly move, hiked the minimum support price (MSP) of paddy by Rs 50 per quintal to Rs 1,360 for this year - a decision which may fuel inflation.

On the other hand, the government had also extended period of reduced excise duty rates for the automobile sector and consumer goods sectors till December 31.

The excise duty on cars, SUVs and two-wheelers as well as consumer durables and capital goods was cut in the Interim Budget in February to help tide over a demand slump.

The government, however, postponed revision in natural gas prices by three months pending a "comprehensive" review to make a controversial pricing formula more palatable.

Earlier last week, in a pre-budget move, cash-strapped Railways hiked passenger fares in all classes by 14.2 per cent and a 6.5 per cent increase in freight rates to garner Rs 8,000 crore a year.

In his previous tweet last month, Tata had said: "Modi's landslide victory echoes the people's mandate for strong leadership and clear policies for growth and prosperity for India."