PM Modi Urges Industries To Align With 'Viksit Bharat' Agenda

Prime Minister Narendra Modi urged industries to align closely with the government’s vision for a 'Viksit Bharat' and emphasised the need for industries to actively compete with the government in advancing the country's progress.

India is currently the only country in the world experiencing both high growth and low inflation, marking a significant turnaround from its economic challenges in the past, said Prime Minister Narendra Modi at the post-budget Confederation of Indian Industry conference, highlighting the country's remarkable economic trajectory and governance achievements.

India will celebrate the century of independence as a developed nation, the PM reiterated.

In his keynote address, Modi reflected on the nation's economic journey since 2014, a period he described as transformative. He recalled the critical question that faced the country back then: how to emerge from the 'Fragile 5' group of economies. “Today, we are long out of that grouping,” Modi asserted.

The Prime Minister highlighted the substantial growth in the Indian Budget, which now stands at Rs 48 lakh crore, an increase from Rs 16 lakh crore in 2004.

Under the previous UPA government, capital expenditure was raised from Rs 90,000 crore to Rs 2 lakh crore over 10 years. In contrast, the current government has elevated capital expenditure to over Rs 11.1 lakh crore, reflecting a commitment to infrastructure and development, he said.

The Prime Minister also highlighted the expansion in budget allocations across various sectors. The railway budget has grown eightfold, the highway budget has also increased eight times, the agricultural budget has quadrupled, and the defence budget has more than doubled. These expansions have occurred alongside tax reductions and incentives designed to boost economic activity and growth, he said.

Unlike previous administrations, his government has ensured that budgetary allocations are effectively utilised, Modi said. “Prior to 2014, the budget was often used merely to announce big-ticket projects and demonstrate economic progress. Unfortunately, the allocated funds were not always fully utilised."

The current administration, he claimed, has focused on good governance by not only announcing ambitious projects but also ensuring their successful execution.

The Prime Minister also highlighted significant tax reforms, like reduction in corporate tax rate from 30% to 25% for companies with revenues up to Rs 400 crore.

The budget focused on India’s manpower, product, quality and value to be globally competitive. The EPFO contribution has been incentivised, he said.

Speaking on the internship program hinted by Finance Minster Nirmala Sitharaman in her budget speech, the PM said skills, exposure and employability have been targeted with the internship scheme. Notably, the program aims to nudge top 500 companies in the world to offer internship opportunities to Indian students.

Modi highlighted that the government’s initiatives and package announcements need to be effectively implemented and carried forward by the industry to realise the vision.

Modi reaffirmed the government's commitment to achieving the ambitious goal of a $5 trillion economy.

The Prime Minister also acknowledged the transformative impact of initiatives like 'Make in India', the easing of foreign direct investment regulations, logistics parks, and Production Linked Incentives schemes. These measures have significantly elevated the industry’s ambitions, he said.

The latest Budget aims to further this progress by establishing plug-and-play industrial parks in India’s top 100 cities, which are poised to become key growth levers. Existing industrial corridors will undergo renovation to support ongoing industrial expansion, the PM said.

Micro, Small, and Medium Enterprises have been granted increased working capital and access to credit, Modi said. The budget has introduced a new credit guarantee scheme focused on the formalisation of MSMEs and improving their market access, he said.