Amid global economic uncertainties, Prime Minister Narendra Modi on Tuesday reaffirmed India’s role as a key driver of global growth. Speaking at a post-Budget webinar titled ‘MSME as an Engine of Growth: Manufacturing, Exports, and Nuclear Energy Missions’, he highlighted India’s economic strength, citing its resilience during the COVID-19 crisis.
“India remains a growth engine for the global economy and has proven its resilience in challenging situations,” he said.
Budget Exceeding Expectations
PM Modi described the latest Budget as a landmark financial plan in the government’s third term, stating that it had surpassed expectations. He emphasised that the government had taken decisive steps, particularly in manufacturing and exports, that went beyond expert predictions.
“The government has taken steps beyond what experts had anticipated, particularly in manufacturing and exports,” he noted.
The prime minister also underscored the importance of a stable policy framework and economic reforms in strengthening investor confidence. He highlighted the elimination of over 40,000 compliances under the Jan Vishwas Act, which has improved the ease of doing business in the country.
PLI Scheme Driving Investments and Exports
Discussing the Production Linked Incentive (PLI) scheme, PM Modi pointed to its success across 14 sectors, with over 750 approved units attracting investments of Rs 1.5 trillion and exports exceeding Rs 5 trillion. He encouraged businesses to leverage global demand and announced the launch of two new missions aimed at enhancing manufacturing and exports.
He also stressed the need for upskilling and the adoption of advanced technologies to maintain a competitive edge in the global market.
Boosting Research & Development
Highlighting the significance of research and development, PM Modi called for further acceleration in R&D to strengthen India’s manufacturing sector. He cited India’s growing presence in industries like toys, footwear, and leather, where traditional craftsmanship is being integrated with modern techniques to boost exports.
“R&D has played a crucial role in India’s manufacturing journey and needs further acceleration,” he said.
MSMEs: Backbone of India’s Industrial Growth
The prime minister reiterated the crucial role of micro, small, and medium enterprises (MSMEs) in India’s industrial expansion. He referred to the 2020 redefinition of MSMEs, which eliminated fears of losing government benefits upon growth, allowing businesses to scale without restrictions. Currently, the sector comprises over 60 million enterprises and remains a major employment generator.
This year’s Budget has further revised the MSME definition to ensure continued government support.
Expanding Credit Access for MSMEs
Acknowledging financing challenges faced by MSMEs, PM Modi pointed to a substantial increase in credit availability over the past decade, from Rs 12 trillion to Rs 30 trillion. To further support MSMEs, the Budget has “doubled the loan guarantee cover to Rs 20 crore” and introduced customised credit cards with a Rs 5 lakh limit for working capital needs. Additionally, 50,000 first-time entrepreneurs from SC, ST, and women communities will receive loans of Rs 2 crore.
Call for State-Level Policy Reforms
PM Modi urged states to actively promote ease of doing business, stating that competition among states would attract more investments and create new growth opportunities. He stressed that progressive state-level policies would strengthen local economies and contribute to India’s overall development.
Concluding his address, the prime minister called for industry collaboration in policy formulation and implementation. He urged stakeholders to focus on “actionable solutions” that would ensure the Budget’s full potential is realized, driving India’s economic expansion in the years ahead.
