PM Modi says consistency & assurance of reforms brought new confidence in the industry

Prime Minister Narendra Modi yesterday said that the government is working with the vision of a self-reliant India and has accelerated the pace of reforms. He said the country has consistently demonstrated its commitment to reforms, financial discipline, transparency, and inclusive growth over the past 10 years. 

Talking about the importance of MSMEs in the economy, Mr Modi said MSMEs play a transformative role in the economic growth of a country. Mr Modi was addressing a post-Budget webinar held on MSME as an Engine of Growth; Manufacturing, Exports and Nuclear Energy Missions; Regulatory, Investment and Ease of doing business Reforms. The Prime Minister pointed out that stable policy and a good business environment are pivotal for development.

                                                                                

Highlighting various measures taken to facilitate ease of doing business in the country, Mr. Modi said the government implemented the Jan Vishwas Act and introduced the concept of simplified income tax by reducing compliances. He added that the government is working on the Jan Vishwas 2.0 Bill. He said important steps have been taken to promote manufacturing and exports in the Budget. 

The Prime Minister also said that consistency and the assurance of reforms have brought new confidence to the industry. He noted that the government’s efforts have reduced the impact of COVID on the economy, which has helped India become a fast-growing economy. He said countries across the world want to strengthen their economic partnership with India.

 

Mr Modi said that research and Development has played a crucial role in India’s manufacturing journey and needs further advancement and acceleration. He highlighted that through Research and Development, the focus can be on innovative products and value addition to existing products. The Prime Minister emphasized that the world recognizes the potential of India’s toy, footwear, and leather industries and by combining traditional crafts with modern technologies, significant success can be achieved. He noted that India can become a global champion in these



sectors, leading to a substantial increase in exports. 

Mr Modi highlighted that this growth will create lakhs of job opportunities in labour-intensive sectors and promote entrepreneurship. Mentioning that PM Vishwakarma Yojana provides end-to-end support to traditional artisans, he urged efforts to connect these artisans with new opportunities and called on all stakeholders to come forward to expand the hidden potential in these sectors.

Underlining that the Government had facilitated loan access and introduced a new type of loan,  Mr Modi highlighted that people are now receiving loans without guarantees, something they never imagined before. He said, that over the past ten years, schemes like MUDRA, which provide loans without guarantees, have also supported small industries. He noted that the Trades portal is resolving many loan-related issues. 

The Prime Minister emphasized the need to develop new modes of credit delivery, ensuring that every MSME has access to low-cost and timely credit. He announced that five lakh first-time entrepreneurs from women, SC, and ST communities will receive loans of two crore rupees. The Prime Minister also announced that in this budget, the guarantee cover for MSME loans has been doubled to 20 crore rupees and additionally, customized credit cards with a limit of five lakh rupees will be provided to meet working capital needs.

Highlighting that 14 sectors were currently benefiting from the PLI scheme, Mr Modi said that under the scheme, more than 750 units have been approved, resulting in an investment of over 1.5 lakh crore rupees, production worth over 13 lakh crore rupees and exports exceeding five lakh crore rupees. He emphasized that this demonstrates how entrepreneurs can advance in new areas when given opportunities. He announced the decision to launch two missions to promote manufacturing and export. 

He urged the industry leaders not to be mere spectators, but to seek opportunities in the global supply chain. He said the focus must be laid on manufacturing innovative products that have global demand to push exports. He observed that the production-linked incentive scheme has led to an investment of over one lakh 50 thousand crore rupees with the production of over 13 lakh crore rupees.