India’s fiscal deficit is set to decline to 4.4 percent, inflation and interest rates remain low, banks are stronger, and forex reserves are at historic highs.
NEW DELHI (India CSR): Prime Minister Narendra Modi, addressing the Economic Times World Leaders Forum in New Delhi, declared that India is on track to soon become the world’s third-largest economy. Highlighting the nation’s fiscal discipline, reforms, and resilience, he said India’s growth story has become a global beacon of hope. Modi stressed that despite challenges like the pandemic, India’s fiscal deficit is set to decline to 4.4 percent, inflation and interest rates remain low, banks are stronger, and forex reserves are at historic highs. Prime Minister strongly asserted that India today is the fastest-growing major economy and is poised to become the world’s third-largest economy. He emphasized that India’s contribution to global growth is expected to reach nearly 20 percent in the near future, making it one of the biggest engines of global economic expansion.
Speaking in an optimistic tone, the Prime Minister said, “India, with its resilience and strength, stands as a beacon of hope for the world.” He explained that this growth is not accidental but the result of consistent efforts to strengthen macroeconomic fundamentals over the past decade. Despite global headwinds like the pandemic, wars, and supply chain disruptions, India has maintained fiscal prudence, attracted investments, and accelerated structural reforms. Modi underlined that the global community is not only acknowledging India’s growth story but also looking up to India as a partner capable of lifting global demand. He credited this to India’s strong democratic institutions, stable governance, and the ability to take bold decisions for long-term national interest. The Prime Minister’s message was clear: India’s growth is built on solid foundations.
Fiscal Discipline and Market Confidence
The Prime Minister placed special emphasis on India’s fiscal performance and financial strength, highlighting that India’s fiscal deficit is estimated to fall to 4.4 percent, a significant achievement given the severe challenges of the COVID-19 pandemic. He described this as a reflection of disciplined financial management and effective policy-making. “Despite global turbulence, India’s economy has emerged stronger. Indian companies are raising record funds from capital markets, our banks are robust, inflation is low, and interest rates are stable,” Modi remarked.
He further noted that the current account deficit remains under control and forex reserves are at record highs, giving the economy a strong shield against external shocks. Importantly, the Prime Minister highlighted the growing role of domestic investors, pointing out that “Every month, lakhs of investors are investing thousands of crores into the markets through SIPs. This shows the faith of ordinary citizens in the country’s future.”
This confidence, he argued, is not just about financial numbers but also about trust in India’s governance. Modi portrayed this rising domestic participation as a silent revolution, strengthening the financial ecosystem from within. By underlining fiscal consolidation, market confidence, and investment growth, he painted a picture of an economy that is not only surviving global storms but also creating new opportunities.
Reforms with Commitment, Not Compulsion
Shri Modi reiterated his government’s philosophy of reform as a conviction, not compulsion. He rejected the traditional idea that reforms happen only under crisis or pressure, stressing instead that his government undertakes reforms as a matter of vision and long-term commitment. “For us, reforms are neither a compulsion nor crisis-driven, but a matter of commitment and conviction,” he said, adding that he is never satisfied with past achievements. Announcing a major reform in the GST framework, the Prime Minister revealed that by Diwali 2025, GST will be made simpler, which will reduce compliance burdens and lower prices for the common man.
He highlighted other reforms undertaken in recent months, including Jan Vishwas 2.0, which decriminalized over 300 minor offences, and the simplification of income tax law, rewritten after six decades in citizen-friendly language. He also pointed to amendments in mining, ports, and shipping laws — long overdue since the colonial era — that will strengthen India’s blue economy. Furthermore, a new Khelo Bharat Niti has been introduced to build a sports economy and prepare India to host global sporting events. Modi’s clear message was that reforms in India are not episodic but continuous, part of a larger transformation agenda that aligns with his mantra of Reform, Perform, Transform.
India’s Strides in the Space Sector
Marking National Space Day, the Prime Minister dedicated a large part of his speech to India’s achievements in the space sector. He noted that before 2014, India had launched only 42 missions in 35 years, whereas in the last 11 years, the country has successfully completed over 60 missions. This dramatic shift, he explained, has been possible because of opening the space sector to private participation, making spectrum allocation transparent, and liberalizing foreign investment.
“To infuse new energy into the space sector, it was essential to free it from constraints,” Modi said, adding that the number of space start-ups has grown from just one in 2014 to more than 300 today. He proudly announced that India has achieved space docking capability, which is critical for future long-duration space missions, and is moving ahead with the Gaganyaan Mission to send astronauts into space. Recognizing the contribution of Group Captain Shubanshu Shukla, Modi emphasized that India’s astronaut program will inspire the next generation. He also revealed that a Rs. 1,000 crore venture capital fund has been created to support space start-ups. Projecting a bold vision, the Prime Minister declared: “The day is not far when India will have its own space station in orbit.” His words reflected both ambition and confidence in India’s space leadership.
Exports, Manufacturing, and Self-Reliance
The Prime Minister underscored that India’s journey toward Atmanirbhar Bharat has already begun to yield results, especially in exports and manufacturing. He recalled that for decades India remained import-driven, but today it has turned into an exporter of advanced products. In the past year alone, India exported agricultural products worth Rs. 4 lakh crore, reflecting its ability to meet global food demand. Electronics exports have jumped from Rs. 35,000 crore before 2014 to Rs. 3.25 lakh crore today. Similarly, automobile exports have more than doubled, reaching Rs. 1.2 lakh crore annually.
Modi added with pride that India has started exporting metro coaches, railway locomotives, and even plans to export electric vehicles to 100 countries, with a milestone event scheduled for August 26, 2025. He linked these achievements to structural reforms, policies supporting domestic industry, and the spirit of self-reliance.
“A Viksit Bharat rests on the foundation of an Aatmanirbhar Bharat,” he stressed, explaining that India’s growth model must be defined by speed, scale, and scope. He recalled how during the pandemic, India demonstrated these three by producing essential medical equipment, delivering 220 crore vaccines, and developing the CoWIN platform. This, he said, is the same approach now driving India’s manufacturing sector, where domestic innovation is matching global standards.
Research, Innovation, and Future Growth
Concluding his address, the Prime Minister highlighted research and innovation as the most important pillars of India’s journey to a developed nation. “Imported research may help survival, but it cannot fulfill India’s aspirations,” he remarked, underlining the urgency to build a strong domestic research ecosystem. He said that India’s expenditure on R&D has doubled since 2014, and the number of patents filed has increased 17 times. To strengthen institutional capacity, R&D cells have been established in nearly 6,000 higher education institutions.
The One Nation, One Subscription initiative has given students access to global research journals, while the National Research Foundation with a budget of Rs. 50,000 crore and the Research Development and Innovation Scheme worth ₹1 lakh crore are supporting private sector-led innovation. Modi urged the industry to invest in clean energy, biotechnology, advanced materials, and quantum technology.
“India is not aiming for incremental change but quantum jumps, guided by the mantra of Reform, Perform, and Transform,” he declared. He concluded by asserting that India is not a passive nation but an active force capable of reshaping global growth patterns. “Bharat carries the strength to even bend the course of time,” he said, leaving the audience with a vision of India as a global leader, not just a participant in the world economy.
(India CSR)
