India's economic situation has completely transformed with the country moving from 'taking advice' to 'giving advice' to the World Bank in the present day, said Indian-American economist Jagdish Bhagwati.

"In the old days, the World Bank used to tell India what to do, but now India tells the World Bank what to do. We have completely arrived at a new age," he said at the Kautilya Economic Conclave in Delhi on October 4.

Bhagwati also praised Prime Minister Narendra Modi for his leadership and said that he stepped in at the right time as India was held back by inward policies.

"Leadership is key, and we must look to the Prime Minister. India was held back by inward policies and poor production quality. The entire system needed to change, and we were very fortunate PM Modi stepped in at the right time," he said. India is full of gifted people, but the system has to move. The Prime Minister made this clear from the start, Bhagwati added.

Recounting one of his earlier conversations with the PM, the Indian-American economist said, "Once, I asked him (PM Modi) what message he wanted to convey. In his response, the PM said building a bus stop only needs cement, but I also want the conductor to treat the poor with respect. I had never heard anyone, not even from Cambridge, think like that—it endeared me to him."

Also Read | There is confidence about India amidst growing regional conflict, says PM Narendra Modi

Bhagwati is widely regarded as the intellectual father of the Indian economic reforms of 1991.

He is a University Professor of economics and law at Columbia University and a Senior Fellow in International Economics at the Council on Foreign Relations.

Bhagwati is the recipient of several prestigious awards, including the Order of the Rising Sun, Padma Vibhushan, Frank Seidman Distinguished Award in Political Economy and the Freedom Prize of Switzerland.