New Delhi: Prime Minister Narendra Modi sat down with Network 18 Group Editor Rahul Joshi for a comprehensive interview covering a multitude of topics spanning politics, economy, the criticism of his government following recent attacks on Dalits, vote bank politics and casteism and also offered a rare peek into himself, his working style and his closely held beliefs.

Appended below is the edited transcript of the interview translated from Hindi into English

Question: At the outset, thank you for giving this interview to Network 18. Two years ago you were elected with a historic mandate, the most decisive in three decades. How do you view the last two years and what do you think has been your biggest achievement?

PM Modi: After getting the responsibility of becoming the Prime Minister it has been about two years and three months. India is a democratic country and the people evaluate governments regularly. The media also evaluates. And these days, professional survey agencies also do this. And I think this is a good thing and that's why I leave it to the people to evaluate how my government has performed.

But I will definitely want that whenever my government is evaluated, the situation of the government before we came to power must be kept in mind, what the state of the country was, what the media was discussing. If we keep that in view, those days newspapers were filled with news of corruption, despair... People had lost hope, they thought everything had sunk.

If a patient, however good the doctor, is despondent, medicines will not cure him. But if the patient is hopeful, then even an average doctor can cure him. The reason for that is the patient's inner belief.

My first priority after forming the government was that the atmosphere of despair should be removed and to create hope and belief in the country. That doesn't happen with speeches. Concrete steps need to be taken, it has been shown to be done. And today after more than two years, I can say with certainty that there is hope not just in the people of this country, the trust of the entire world in India has grown.

There was a time when we were being seen as a sinking ship. In the BRICS, the ‘I’ (representing India) was seen as wobbly. Today it is said that if there is a bright spot, it is India. I think this in itself is a good way to evaluate.

Question: You came to power on the issue of development, so a question on the economy. After a lot of effort you succeeded in passing the GST Bill. How big a success do you see this. What does it mean for the common man?

PM Modi: This is perhaps the biggest tax reform since the independence of India. This reform will bring a big change in India. Very few people in the country pay taxes. Some people pay taxes because they are patriotic and they want to do something for the country. Some pay taxes because they don't want to break the law. Some pay to avoid trouble. But most don't pay because the process is complicated. They think they might get stuck in the process and won't be able to come out. GST will simplify tax payments so much that anyone who wants to contribute to the country will come forward.

Secondly, today if you go and eat in a hotel, the bill that you get comes with this cess, that cess... People send messages on Whatsapp detailing the bill amount and the cess paid. All this will end. And then we routinely see at octroi and border checkposts, miles of vehicles standing. When vehicles stand, it hurts the country's economy. Now all of it will become seamless, the movement of goods from one state to another.

Taxation systems will also be simplified and this will not only benefit the common man, the revenues will help develop the nation. Today, there are incidents of mistrust between states. This will end that situation, it will be transparent and strengthen the federal structure.

Question: After coming to power, your biggest challenge was the economy. The task before you was not just to bring it back on track but also increase the pace of growth. Have you managed to achieve this?

PM Modi: You are right that there was a negative atmosphere. The country's traders and industrialists had started looking out. There was a paralysis in government. On the one hand it was this situation. On the other we had to face two successive droughts. Third, there was a slowdown in the global economy. So there were a series of challenges. It wasn't only after we took charge. Even after that there were challenges. But our intention was strong and policies were clear. There was decisiveness because there was no vested interest. The result of this was that positivity spread very quickly.

Today, we have the highest amount of foreign direct investment after Independence. The entire world says that at 7% growth, we are the fastest growing economy. Whether it is the World Bank, IMF, credit agencies, even UN agencies… they all say India is growing rapidly.

So those policies which are helping growth have been emphasised. All obstructions are being removed with policies. All this has resulted in speeding up the economy. This time the rains have been good and this helps agriculture, which is driving force for the economy. This has raised hopes that the coming days will be much better.

Usually it is one or two things that are talked about, but today growth has being talked about in all sectors. Electricity production has gone up and so has demand. Infrastructure work is also growing rapidly and that happens when there is demand in the economy. From all this it looks like we have moved ahead to better days.

Prime Minister Narendra Modi in an interview with Network18 Group Editor Rahul Joshi.

Question: You are absolutely right that the monsoon is very encouraging and stock markets are also up. Can you please tell us what the next wave of reforms will be?

PM Modi: First of all, in our country, only what is talked about is seen as reform. If it isn't talked about, it isn't seen as reform. It shows our ignorance. Actually I am of the view reform to transform. I say in my government -- Reform, Perform and Transform. And since I am sitting for an interview, I would say Reform, Perform, Transform and Inform.

Take ease of doing business. Our ranking is improving very quickly. This is not possible without reform. Our systems, processes, forms were so complicated. These have been reformed, so our rankings are going up. A UN agency has said that from 10 in the next two years, we could be at number three. These small things need to be improved. Even today there exists licence raj in some areas. That needs to go. This is an important reform that is happening at every level -- administrative, governance, legal.

Like for instance we removed 1,700 laws that were from the 19th and 20th centuries. I have asked states also to do so. These are very big reforms that people, because of lack on information, don't consider reforms.

Take education, where we have taken an important step that no one gave attention to. We have said that 10 government and 10 private universities will be freed of all University Grants Commission rules. We will give them money and they must move towards becoming world class universities. If rules were holding them up, we will remove the rules. Now do it and show us. This is a major reform, but doesn't get attention.

Direct benefit transfer is a big reform. Earlier who knew where MNREGA money was going? Now it is sent by DBT. So are gas subsidy payments and student scholarships. For me all these are reforms in governance, transparency. We are getting in more technology. These have to be done at a larger scale. At the Centre of this is the common man. How to make life easier for the common man, how they will get what is their right, we want to stress on these.

Question:While there has been economic growth, private investment in the economy is still tepid. Some sectors like real estate are still in trouble. Venture capital funding of startups has slowed. What message would you like to give to private industry and foreign investors at this juncture?

PM Modi: Today I think, before presenting the first Budget, I should have placed a White Paper in Parliament on the economic situation in the country. This thought had struck me then. I had two paths then. Politics told me that I should put out all the details. But the nation's interest told me that this information would increase the sense of hopelessness, markets would be badly hit, it would be big blow to the economy and the world's view of India would get worse. It would have been very difficult to get the economy out of that... I chose to stay silent in the national interest at the risk of political damage. At that time the situation in public sector banks was coming out... I didn't put these details out in public. It hurt us, we were criticised, it was made to look like it was all my fault. But I took the political damage in the country's interest.

The impact of all these issues from the past have impacted private investment, like the non-performing assets in banks. I held a session with bankers and told them there will be no call from the government to you. These steps would have tightened the screws.

Despite that, the pace at which roads are being made, how railways is expanding, the six-fold increase in electronic goods manufacturing… these things show we haven't taken shortcuts. And my motto is, as it says on railway platforms: 'short cut will cut you short'. We don't want to take any shortcuts and the results are showing.

Anyway the situation has now improved. We don't have to worry about these things but in the beginning -- in May 2014 -- I chose the tough path. When unbiased people analyse the situation, I am confident they will be surprised.

QuestionYou have adopted a tough line on Black Money. In fact, it is said that because of this crackdown on black money, some businessmen are hiding either in Dubai or London. You haven't spared political dynasts either. Will this process continue?

PM Modi: Firstly, I have neither looked at this from a political standpoint and nor will I do so in the future. I have been a state CM for 14 years. And history bears witness to the fact that I have never opened any file due to political considerations. I have never been accused of this either. It has been over two years here too. The government has given no instruction to open any file. The law will take its own course. I have no right to indulge in any cover up. You saying that we haven't spared any dynasty isn't correct.

"We have made requisite legal changes so that the black money circulating inside the country can also be curbed. There's a scheme which is running till the 30th of September. For all those who are still willing to come in the mainstream. I have said this in public that 30th of September is your last date. You may have made mistakes with whatever intentions. Whether it has been done willingly or unwillingly, here is your chance. Come into the mainstream. I have this plan for people to sleep peacefully at night. People must accept this. And no one should blame me if I take tough decisions after the 30th. This money belongs to the country's poor. No one has the right to loot this. This is my commitment. I am working with full force and will continue the effort.

Question: Mr Prime Minister, let us talk about politics. Many states go to polls next year. Social discrimination and fundamentalism is raising its ugly head again. Dalits and members of backward classes have in fact started saying that the BJP and the RSS are anti Dalit. How will you assure the people that your agenda is development and development alone?

PM Modi: The country has full faith that our agenda is only development. There is no confusion in the minds of people. But all those people who never wanted that a government like this to come to power, those who never wanted the previous regime to go… they are the ones who have trouble. So, development is our only issue and it will remain so. And this is not a political issue, this is my conviction. If we want to free this country of poverty then we need development. We will need to empower the poor.

As far as some incidents are concerned, they need to be condemned. It has no place in any civilised society. But we must not forget that law and order is a state subject. Some are selectively picking issues and blaming Modi for it. I don't know what purpose does it serve for those who are doing this. But this is surely hurting the interest of the country. Such incidents must not happen. From a statistical point of view, whether it is communal violence, atrocities against Dalits or atrocities against tribals, data shows that such incidents have gone down in number compared with what it was under the previous government.

But the issue is not of what happened in their government and our government. The issue is that this is not befitting as per our society. We have a culture dating back thousands of years. We have seen some imbalances in our society and we have to intelligently take our society out of this imbalance. This is a social problem. It is deeply rooted. Politics on social imbalances is a disservice to society. To all those who have faced injustice for generations. If you look at dalit MPs and dalit MLAs, tribal MPs and tribal MLAs, the BJP has a sizable presence.

Ever since I celebrated the 125th anniversary of Babasaheb Bhimrao Ambedkar, when the UNO also celebrated his anniversary and 102 countries observed the 125th anniversary, and parliament discussed the life and works of Babasaheb Ambedkar for two days, many people thought that Modi is a devotee of Ambedkar. They started having problems. All those who were self-appointed guardians of Dalits did not like it that Modi is with the Dalits, that Modi devotes himself to tribals. I am devoted to the development of all the dalits, oppressed, underprivileged, deprived, women. Those who see this as an obstruction to their politics are the ones creating trouble.

And this is why they are levelling baseless allegations. All those who have fed this country the poison of caste divide have destroyed this country. They must stop giving political tones to social problems. We must move forward with a purpose. And I want to ask the society also: are these incidents befitting of a civilised society?

I spoke from the ramparts of the Red Fort on the incidents of rape...I said that parents must ask their sons also - where they are going, what they are doing? We ask our daughters these questions.

And I want to tell this to our politicians also, also my party's leaders too: reckless statements, saying anything about anyone or any person's community before the media. The media will come to you. It needs its TRPs. But you are answerable to the nation. And that is why, all those living in public life.. whether political or social workers -- even if we are representing a particular community -- for the benefit of the country's unity, society's unity, for the sake of general bonhomie, we must be extra vigilant.

Whenever we are wounded, even the slightest touch of a paper also causes pain. Thousands of years of injustice have kept these wounds open. The slightest of damage will cause a lot of pain. This is why, it does not matter whether the incident is big or small, what matters is that the incident must not happen in the first place. Which government had more incidents and which didn't is not the point. We all have to work collectively to give strength to the country's unity.

Question: How important is social harmony for economic progress?

PM Modi: Economic progress alone is not the solution. Peace, unity and harmony is essential for society. Even in a family, no matter how well-off you may be...even if you are sitting over a heap of money, the family's unity is important. This is true for the society also. We don't need unity just to fight poverty alone. We need to be united and harmonious. We need to be committed to social justice. And that is why, unity is not important for economic progress alone. Peace, unity and harmony are useful in family, life, society and for the nation. And to all those who believe in Vasudhaive Kutumbakam, the whole world is one.

Question: All political parties talk about removing poverty. Yet poverty remains an issue of grave concern in our country. Job creation is a major challenge for you and you have kept this in mind too. What will be your strategy on both these counts?

PM Modi: You are right. Poverty alleviation has been a political slogan. A lot of politics has happened on poverty. And a lot of programmes for poverty alleviation have also been started keeping elections in mind. I do not want to get in a controversy on whether it was good or bad. But my path is a little different. We have to empower the poor to end poverty. If the poor are empowered, then they have enough power to alleviate poverty. Politics can be done by keeping the poor poor. But freedom from poverty can only come by empowerment. The biggest tool for empowerment is education. The next point is employment. If we get economic empowerment, then it can serve as a tool to change things on its own.

All the initiatives that we have taken over the past few years, like the Mudra Scheme - at least 3.5 crore people have taken the benefits of the Mudra Scheme and they got about 1.25 lakh crore rupees through this scheme. Many of them are those who have got money from the bank for the first time. These people will do something or the other. They will get sewing machines, stitch clothes… they will do something. It is possible that they might employ a few. This empowerment will give these people a lot of power. To educate their children.

Suppose a person buys a taxi. Then they would feel they must educate their children. They will move forward. One of the things that we have done is called Stand Up India. I have told banks that every branch must give financial aid to a Dalit, a tribal and a woman. They must make them an entrepreneur.

The country has 1.25 Lakh branches of banks. If they empower even 3 people each, they will benefit 4-5 lakh families. People who did not have this sort of financial empowerment will feel empowered. They will be an economic strength. Start Up India... To give employment to the young, I have started this scheme. These are small decisions. I have also sent an advisory to the states. That they must move forward in this direction.

We have big malls in our country. Lakhs and crores of rupees are spent in constructing them. There is no time restriction for them. They can run till 10 pm, 12 pm, 4am,.but there will be a government representative with a stick in his hand and ask a small shopkeeper to shut his shop...Why? We have said that these small traders who have small enterprises, they are free to be open 365 days, 24/7..so that they can go about doing their business and also employ a few. And these are the people who drive the economy in our country. This is where we are working to empower.

We have laid a lot of stress on skill development. Skill development is the need of the hour. We have changed systems. Skilled development is a ministry. It has a different budget. And work is being done on a huge scale. Skill development by government, skill development through public private partnership, skilled development through skill universities collaborating with other countries who have done good work in developing skills. The country has 80 crore youth. They are below 30 years of age. If youth have the skill, they can change the fortunes of this country. And we are laying stress on this. The country's youth & employment are at the centre of all economic activity. In the agriculture sector also, if you move towards value addition, it will create more opportunities to generate employment. A village youth who has had to go to big towns under pressure, if he is given value addition and agriculture-centric rural development, if we empower him, then employment opportunities shall be created. We are laying stress on this. And we can see some good results.

Question: You are the first prime minister who has had a direct communication with Indians abroad. How has this benefitted the country?

PM Modi: Everything should not be measured on a scale of profit and loss. In any part of the world, anyone who is Indian, at whatever post he may be, has a feeling in his heart that my country must progress. And if they get unfavourable press about their country, they are the most upset. Because they are away, it pricks them even more. We get used to a lot of things. They get affected. They have a lot of affection for India. But they don't get an opportunity or a channel. We have acknowledged the power of the diaspora in Niti Aayog. This is such a global strength. They have global exposure. They have academic quality and qualifications… a zeal to work for the country. And wherever they are, their love for the country has not diminished. Why should we disassociate with them? We must establish a link with them. And there will come a time, when they will be true ambassadors of India. And I have seen that more than a government’s mission, India's strength is largely due to the diaspora’s attitude and contacts. Mission plus diaspora, when they get together, our strength grows manifold. So this was my role and we are getting good results.