Amid global political uncertainty, Prime Minister Narendra Modi stated on Tuesday that India is widely recognized as a key center of growth. He highlighted that while the global economy slowed during the Covid-19 crisis, India played a vital role in driving worldwide economic progress.
Addressing a post-Budget webinar titled "MSME as an Engine of Growth: Manufacturing, Exports, and Nuclear Energy Missions," PM Modi attributed India's economic resilience to the government's emphasis on self-reliance and structural reforms.
“India remains a growth engine for the global economy and has proven its resilience in challenging situations,” he said.
PM Modi: Budget Surpasses Expectations
PM Modi called the latest Budget the government's first comprehensive financial plan in its third term, highlighting that it had surpassed expectations. “The government has taken steps beyond what experts had anticipated, particularly in manufacturing and exports,” he noted. He reiterated the dedication to maintaining policy consistency and advancing economic reforms, which have strengthened investor confidence over the past decade.
He also highlighted the government's initiatives to enhance the ease of doing business through regulatory improvements. “Stable policy and a better business environment are crucial for the development of any country,” he mentioned this while referring to the removal of over 40,000 compliances under the Jan Vishwas Act.
Achievements of the PLI Scheme
Speaking about the Production Linked Incentive (PLI) scheme, PM Modi highlighted its influence across 14 sectors, with more than 750 approved units, attracting investments of Rs 1.5 trillion and driving exports beyond Rs 5 trillion. Urging businesses to seize global market opportunities, he introduced two new missions aimed at strengthening manufacturing and exports. He also emphasized the importance of skill development and the adoption of advanced technologies to maintain a competitive edge.
Empowering R&D
“R&D has played a crucial role in India's manufacturing journey and needs further acceleration,” PM Modi said. He highlighted India's increasing prowess in industries like toys, footwear, and leather, where traditional craftsmanship is being combined with modern techniques to enhance exports.
MSMEs: The Driving Force Behind India's Industrial Growth
Acknowledging the vital role of the micro, small, and medium enterprises (MSME) sector in industrial growth, Modi emphasized its redefinition in 2020, which eliminated concerns about losing government benefits as businesses expanded. With over 60 million enterprises, the sector remains a key driver of employment. This Budget further refines the definition to ensure ongoing support.
Enhancing Credit Accessibility for MSMEs
PM Modi acknowledged the difficulties MSMEs encounter in obtaining loans and highlighted the substantial rise 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 specialised 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 Rs 2 crore in loans.
The prime minister urged states to actively enhance the ease of doing business, stating that competition among states would attract greater investments. He emphasised that progressive state-level policies would strengthen local economies and unlock new growth opportunities.
Concluding his address, PM Modi underscored the need for actionable solutions from the webinar discussions. He called for industry collaboration in policy-making and execution to ensure that India fully leverages the Budget’s potential to drive economic growth.
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