India's stability fuels global growth, says PM Modi in post-Budget webinar

Prime Minister Narendra Modi highlights India's resilience, calls MSMEs the backbone of growth; announces expanded credit, new export missions, and policy reforms to boost manufacturing

Amid global political uncertainty, Prime Minister Narendra Modi on Tuesday said that India is widely regarded as a key growth hub. He emphasised that while the world economy slowed during the Covid-19 crisis, India played a crucial role in driving global growth.

 

Speaking at a post-Budget webinar titled ‘MSME as an Engine of Growth: Manufacturing, Exports, and Nuclear Energy Missions’, PM Modi credited India's economic stability to the government's focus 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.

'Budget exceeding expectations': PM Modi

PM Modi described the latest Budget as the government's first full-fledged financial plan in its third term, stressing that it had exceeded expectations. “The government has taken steps beyond what experts had anticipated, particularly in manufacturing and exports,” he noted. He reaffirmed the commitment to policy consistency and economic reforms, which have boosted investor confidence over the past decade.

 

 

He further emphasised the government's efforts to improve the ease of doing business through regulatory reforms. “Stable policy and a better business environment are crucial for the development of any country,” he said, citing the elimination of over 40,000 compliances under the Jan Vishwas Act.

 

Success of PLI scheme

 

Discussing the Production Linked Incentive (PLI) scheme, PM Modi noted its impact on 14 sectors, with over 750 approved units, generating an investment of Rs 1.5 trillion and exports exceeding Rs 5 trillion. Encouraging businesses to capitalise on global demand, he announced the launch of two new missions focused on "enhancing manufacturing and exports". He stressed the need for skilling and adopting advanced technologies to remain competitive.

Strengthening R&D  

“R&D has played a crucial role in India's manufacturing journey and needs further acceleration,” PM Modi said. He pointed to India's growing strength in industries such as toys, footwear, and leather, where traditional craftsmanship is being merged with modern techniques to boost exports.

MSMEs: The backbone of India's industrial growth  

 

Recognising the micro, small, and medium enterprises (MSME) sector as crucial to industrial expansion, Modi highlighted the redefinition of MSMEs in 2020, which removed fears of losing government benefits upon growth. The sector now comprises over 60 million enterprises, significantly contributing to employment. In this Budget, the definition has been further revised to ensure continued support.

Expanding credit access for MSMEs  

PM Modi acknowledged the challenges MSMEs face in securing loans and noted the significant 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 limit of Rs 5 lakh for working capital needs. Additionally, 50,000 first-time entrepreneurs from SC, ST, and women communities will receive loans of Rs 2 crore.

 

The prime minister urged states to actively promote "ease of doing business", as competition among states will attract more investments. He emphasised that progressive policies at the state level will benefit local economies and create new growth opportunities.

 

Concluding his address, PM Modi stressed the importance of "actionable solutions" emerging from the webinar discussions. He called for industry collaboration in policy formulation and implementation, ensuring that India maximises the potential of the Budget to drive economic expansion.