Prime Minister Narendra Modi on Tuesday called for competition among States to see who can make the most of FY25-26 Union Budget.
“The more States promote ease of doing business, the more investors they will attract. This will benefit the respective States the most. States with progressive policies will attract companies to invest in their regions,” Modi said while addressing the post- Budget webinars. The webinars were held on ‘MSME as an Engine of Growth; Manufacturing, Exports and Nuclear Energy Missions; Regulatory, Investment and Ease of doing business reforms’.
Modi highlighted that in the past 10 years, India had shown a commitment to reforms, financial discipline, transparency and inclusive growth. “The assurance of consistency and reforms has brought new confidence within the industry,” he said while further assuring further consistency in the coming years. He also encouraged stakeholders to take bold steps and open new avenues for manufacturing and exports for the country.
“Every country in the world wants to strengthen its economic partnership with India,” Modi said while urging the manufacturing sector to take full advantage of this partnership. “Stable policy and a better business environment are crucial for the development of any country,” he said highlighting that a few years ago, the government introduced the Jan Vishwas Act and made efforts to reduce compliances. Over 40,000 compliances were eliminated at both Central and State levels, promoting ease of doing business.
‘India, a global growth engine’
Talking about global uncertainty, he emphasised that entire world views India as a growth centre. “India remains a growth engine for the global economy and has proven its resilience in challenging situations,” Modi said while highlighting India’s strategy and success during Covid. Pointing out that disruptions in the supply chain affect the global economy, and the world needs reliable partners that produce high-quality products and ensure reliable supply, he emphasised that India was capable of fulfilling this need, presenting a significant opportunity for the country.
He urged the industry not to be mere spectators but to actively seek their role and carve out opportunities. “It is easier today compared to the past, as the country has friendly policies and the government stands shoulder to shoulder with the industry,” he said while calling for a strong resolve, objectivity in seeking opportunities in the global supply chain, and accepting challenges. “If every industry takes one step forward, collectively, they can achieve significant progress,” he said.
Talking about MSMEs, he said they “…play a transformative role in the economic growth of our country. We are committed to nurturing and strengthening this sector.” He noted that the number of MSMEs in the country has increased to over 6 crore, providing employment opportunities to crores. “The definition of MSMEs has been further expanded to install confidence in their continuous growth. This will create more employment opportunities for the youth,” he said, noting that the biggest problem faced by MSMEs was the difficulty in obtaining loans. He added that ten years ago, MSMEs received loans worth approximately ₹12 lakh crore, which has now increased to around ₹30 lakh crore.