India is emerging as a key global economic growth hub, with its stability and resilience fueling international expansion, said Prime Minister Narendra Modi at the post-Budget webinar, ‘MSME as an Engine of Growth: Manufacturing, Exports, and Nuclear Energy Missions’. He attributed India's economic strength to self-reliance, structural reforms, and policy consistency, reinforcing investor confidence and industrial growth.

India’s Economic Strength Amid Global Uncertainties

PM Modi emphasized that despite global economic uncertainties, India continues to attract investments, create jobs, and drive exports. The Union Budget 2025 exceeded expectations, reinforcing policy continuity and economic reforms. Key initiatives, including ease of doing business measures, have significantly simplified regulations and boosted business confidence. The elimination of over 40,000 compliances under the Jan Vishwas Act has streamlined bureaucratic processes for businesses.

Production Linked Incentive (PLI) Scheme: A Game Changer

The Production Linked Incentive (PLI) scheme has been a catalyst for India’s manufacturing and exports, covering 14 key sectors. According to PM Modi, the scheme has resulted in:

• 750+ approved units actively benefiting from the scheme.
• ₹1,50,000 crore (US$ 17.2 billion) in investments flowing into manufacturing.
• Exports surpassing ₹5,00,000 crore (US$ 57.4 billion), boosting India's position as a global manufacturing hub.

Additionally, two new missions focused on advanced technology adoption and skilling have been launched to further strengthen manufacturing and export capabilities.

MSME Sector: The Backbone of India’s Industrial Growth

PM Modi highlighted that India’s MSME sector, comprising over 60 million enterprises, remains a major driver of employment and industrial growth. He recalled its redefinition in 2020, which ensured that growing MSMEs did not lose government benefits upon expansion.

Key financial measures supporting MSMEs include:

• Credit access expanded from ₹12,00,000 crore (US$ 137.7 billion) to ₹30,00,000 crore (US$ 344.3 billion) in the last decade.
• Loan guarantee cover doubled to ₹20 crore (US$ 2.3 million), ensuring better financial security.
• Customized MSME credit cards offering ₹5 lakh (US$ 5,730) for working capital and ₹2 crore (US$ 2,29,500) loans for 50,000 first-time SC, ST, and women entrepreneurs.

Encouraging States to Compete for Investments

To sustain India’s economic momentum, PM Modi urged state governments to enhance their business environments. He stressed that progressive policies, competitive reforms, and industry collaboration will be key to maximizing the impact of the Union Budget on India’s economic expansion.

The Road Ahead: Strengthening India’s Global Position

With strong economic fundamentals, strategic policy reforms, and growing investments, India is well-positioned to lead global economic growth. The government’s proactive measures in manufacturing, exports, and MSME development are expected to further accelerate economic progress. As businesses adapt to policy-driven growth incentives, India is poised to become a global economic powerhouse by 2047.

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