Journey Towards Viksit Bharat Reflects Change in Confidence, India to Soon Become 3rd Largest Economy: PM

Prime Minister Narendra Modi said India is growing at 8 percent and the day is not far when the country will become the third largest economy globally from the current fifth position. He also exuded confidence that this feat of becoming the third-largest economy will be achieved in his ongoing third term. The prime minister was addressing the inaugural session of ‘Journey Towards Viksit Bharat: A Post Union Budget 2024-25 Conference’ organised by the Confederation of Indian Industry (CII) on July 30, 2024, at Vigyan Bhawan in New Delhi.

He said that the nation can never fall back when its citizens have achieved stability in every aspect of life and are filled with enthusiasm. Referring to the discussions during the pandemic with the business community regarding apprehensions about the growth, PM Modi recalled the optimism that he expressed at the time and mentioned the rapid growth that the country is witnessing today. “Today we are discussing - Journey towards Viksit Bharat. This is not just the change of sentiment, this reflects a change in confidence”, he said, reiterating India’s position as 5th largest economy in the world and rapid strides towards the 3rd place.

The prime minister recalled the time when the present government was elected to power in 2014 and highlighted the need of the hour to bring the economy back on track. He pointed out the pre-2014 era when the nation belonged to the list of fragile five economies and was marred by corruption and scams worth lakhs of crores rupees.

Without delving into the specifics of the economic conditions outlined by the government in a white paper, he encouraged industry leaders and organisations to review the document and compare it to past economic situations. He emphasised that the current government has elevated India's economy to new heights and rescued it from dire straits.

Putting forth some facts from the recently presented Budget, the Prime Minister compared the current Budget of Rs 48 Lakh Crore with Rs 16 Lakh Crore Budget of 2013-14, showing an increase of three times. Capital Expenditure, the biggest measure of resource investment was Rs 90,000 crore in 2004, which was taken to Rs 2 lakh crore in the 10 years up to 2014, -two times increase. In comparison, this important indicator has reached beyond Rs 11 Lakh crore today, marking a more than five times rise.

Reiterating that his government is determined to look after every sector of the Indian economy, the Prime Minister said, “If you will look at different sectors, you will get an idea as to how India is focussing on each one of them.”

Drawing a comparison with the previous government, PM Modi said in the last 10 years, the budgets of railways and highways have seen an increase of 8 times. Meanwhile, the agricultural and defence budgets have witnessed a jump of more than four and two times, respectively.

The Prime Minister emphasised that the record increase in every sector’s budget has been carried out after record deductions in tax. “In 2014, MSMEs earning Rs 1 crore had to pay presumptive tax, now MSMEs with income up to Rs 3 crore can also take advantage of this. In 2014, MSMEs earning up to Rs 50 crore had to pay 30 per cent tax, today this rate is 22 per cent. In 2014, companies used to pay 30 per cent corporate tax, today this rate is 25 per cent for companies with income up to Rs 400 crore,” he said.

The Prime Minister said this Union Budget was not just about budget allocation and tax reduction, but also about good governance. He recalled that before 2014, big announcements used to be made in the budgets to create a facade of a healthy economy. However, the very announcements did not see the day of light when it came to their implementation on the ground. They were unable to spend even the allocated sum on infrastructure completely, but the headlines used to be made during the time of announcements. Share markets also used to register small jumps, and their governments never prioritized completing projects on time.

“We have changed this situation in the last 10 years. You all have witnessed the speed and scale at which we are completing every infrastructure project,” he added.

Referring to the uncertainties of the current global scenario, the Prime Minister highlighted the exception of India’s growth and stability. India’s foreign exchange reserve witnessed robust growth and India is showing high growth and low inflation in a low-growth and high-inflation global scenario. He also called India’s fiscal prudence during the pandemic, a role model for the world. India’s contribution to global goods and services export is consistently increasing. He emphasized that India’s contribution to global growth has reached 16 per cent despite significant global shocks like the pandemic, natural disasters and wars.

“Nation is moving forward with the resolutions of Viksit Bharat,” PM Modi said, as he mentioned that 25 crore people have risen out of poverty in the last 10 years, and emphasised the government’s efforts to increase ease of living and boost quality of life.

The Prime Minister said that the government is highly focused on skill development and employment keeping in mind Industry 4.0 standards. He gave examples of Mudra Yojna, Start-Up India and Stand-Up India campaigns, and informed that more than 8 crore people have started new businesses. He stated that India is home to 1.40 lakh startups employing lakhs of youth.

Referring to the much-praised PM Package worth Rs 2 lakh crore in this year’s budget, the Prime Minister said that it will benefit more than 4 crore youth. “PM Package is holistic and comprehensive. It is interlinked with end-to-end solutions,” he said, adding that the vision behind the PM Package is to make India’s manpower and products globally competitive in terms of quality and value.

PM Modi also touched upon the Internship scheme introduced to enhance skill and exposure for the youth, thereby boosting their chances of employment, while at the same time incentivising those generating employment on a large scale. Therefore, the Prime Minister said, the government has announced incentives in EPFO contribution.

The Prime Minister said that the government’s intent and commitment are very clear and there is no diversion in its direction. The Commitment of ‘Nation First’ is reflected in the five trillion-dollar economy goal, saturation approach, emphasis on Zero Effect-Zero Defect and pledge of Atmanirbhar Bharat or Viksit Bharat. He highlighted the focus and emphasis on expansion and monitoring of schemes.

He also touched upon the aspect of manufacturing in the Budget. He mentioned Make in India and simplification of FDI rules in various sectors along with multi-purpose logistics parks, PLI for 14 sectors. This Budget has announced plug-and-play investment-ready investment parks for 100 districts of the country. “These 100 cities will become new hubs of Viksit Bharat”, he added. The Prime Minister said that his government will also modernise the existing industrial corridors.

Sharing his government’s vision to empower the Ministry of Micro, Small and Medium Enterprises (MSMEs), the Prime Minister said they have addressed the challenges faced by them along with providing them with the required facilities. “We have been working continuously since 2014 to ensure that MSMEs get required working capital and credit, their market access and prospects are improved and they are formalised,” the PM said, adding that they have further ensured tax reduction and less compliance burden for them.

The Prime Minister underlined certain points in the budget such as increased allocation for nuclear power generation, Digital Public Infrastructure for agriculture, Bhu-Aadhar card for providing number to land parcels of farmers, Rs 1,000 crore venture capital fund for space economy, Critical Mineral Mission, and upcoming auction of offshore blocks for mining. “These new announcements will open new avenues of progress”, he asserted.

Highlighting that opportunities are being created, especially in the sunrise sectors as India is on the onset of becoming the third-largest economy in the world, the Prime Minister expressed the need to make a name in the Semiconductor Value Chain to play a crucial role in the future. Therefore, the Prime Minister said, the government is laying emphasis on promoting the semiconductor industry.

He also touched upon encouraging electronics manufacturing, especially during the present era of Mobile Manufacturing Revolution. He drew parallels in how India transformed into a top mobile manufacturer and exporter from being an importer in the past.

PM Modi also mentioned a road map for Green Jobs Sector in India, boosting green hydrogen and e-vehicles industries. Noting that the clean energy initiatives in this year’s budget are being highly discussed, the Prime Minister said that in today's era, both Energy Security and Energy Transition are equally important for the economy and ecology.

On the work being done on small nuclear reactors, PM Modi said that it will not only benefit the industry in the form of energy access but the entire supply chain related to this sector will also get new business opportunities. “Our industries and entrepreneurs have always shown their commitment to the development of the country”, the Prime Minister said expressing confidence that they will play a key role in making India a global player in all the sunrise sectors.

“Our government has no lack of political will. For us, the aspirations of the country and its citizens are paramount.” Calling India’s private sector a strong medium for creating a Viksit Bharat, the Prime Minister said that wealth creators are the main driving force of India’s growth story.

He said India’s policies, commitment, determination, decisions and investments are becoming the basis of global progress. Pointing towards the growing interest in India among global investors, he informed about his call in the recent meeting of the NITI Aayog to the state Chief Ministers for creating investor-friendly charters, bringing clarity in investment policies and creating a conducive atmosphere for investment. Earlier, the prime minister expressed gratitude towards the Confederation of Indian Industry (CII) for inviting him to address the occasion.

The conference was organised to present the outline for the Government's larger vision for growth and the industry's role. More than 1000 participants from industry, government, the diplomatic community and think tanks among others attended the event in person, while many connected online from the various CII centers across the country and overseas.