Prime Minister Narendra Modi said on Tuesday that India remains a growth engine for the global economy and has proven its resilience in challenging situations.

The prime minister was speaking at the post-budget webinars via video conferencing on MSME as an Engine of Growth; Manufacturing, Exports and Nuclear Energy Missions; Regulatory, Investment and Ease of Doing Business reforms.

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Pointing out that disruptions in the supply chain affect the global economy, and the world needs reliable partners that produce high-quality products and ensure reliable supply, Modi said India was capable of fulfilling this need, presenting a significant opportunity for the country.

Modi urged the industry not to be a mere spectator but to actively seek their role and carve out opportunities. He said it is easier today compared to the past as the country has friendly policies and the government stands shoulder to shoulder with the industry.

The prime minister called for a strong resolve, objectivity in seeking opportunities in the global supply chain, and accepting challenges. If every industry takes one step forward, collectively, they can achieve significant progress, he said.

“The world is currently experiencing political uncertainty, and the entire world views India as a growth centre,” said Modi, highlighting that during the COVID crisis, when the global economy slowed down, India accelerated global growth.

He added that this was achieved by advancing the vision of Aatmanirbhar Bharat and accelerating reforms.

The prime minister emphasised that these efforts minimised the impact of COVID on the economy, helping India become one of the fastest-growing economies.

Calling the MSME sector the backbone of India’s manufacturing and industrial growth, he said, “MSMEs play a transformative role in the economic growth of our country, we are committed to nurturing and strengthening this sector.”

In 2020, he recalled that the government made a significant decision to revise the definition of MSMEs after 14 years, which eliminated the fear among MSMEs that they would lose government benefits if they grew.

The prime minister noted that the number of MSMEs in the country has increased to over 6 crore, providing employment opportunities to crores.

In this budget, the definition of MSMEs has been further expanded to instill confidence in their continuous growth and thereby to create more employment opportunities for the youth, the prime minister said, adding that the biggest problem faced by MSMEs was the difficulty in obtaining loans.

He said ten years ago, MSMEs received loans worth approximately Rs 12 lakh crore, which has now increased to around Rs 30 lakh crore.

The prime minister pointed out that the guarantee cover for MSME loans in this budget has been doubled to Rs 20 crore. Additionally, customised credit cards with a limit of Rs 5 lakh will be provided to meet working capital needs.

Modi said the post-budget webinars on manufacturing and export are of great importance. Mentioning that this budget is the first full budget of the government’s third term, he emphasised that the most notable aspect of this budget is its delivery, which exceeded expectations.

The prime minister pointed out that in several sectors, the government has taken steps beyond what experts had anticipated. He also highlighted that significant decisions have been made regarding manufacturing and export in this budget.

Pointing out that the country has witnessed consistent government policies for over a decade, the prime minister highlighted that in the past 10 years, India had shown a commitment to reforms, financial discipline, transparency, and inclusive growth.

He emphasised that the assurance of consistency and reforms has brought new confidence within the industry.

Modi assured every stakeholder in manufacturing and exports that this consistency will continue in the coming years. Encouraging stakeholders to take bold steps and open new avenues for manufacturing and export for the country, he highlighted that every country in the world wants to strengthen its economic partnership with India.

He urged the manufacturing sector to take full advantage of this partnership. “Stable policy and a better business environment are crucial for the development of any country,” said the prime minister, recalling that a few years ago, the government introduced the Jan Vishwas Act and made efforts to reduce compliances.

Over 40,000 compliances were eliminated at both the Central and the state levels, promoting ease of doing business, he noted.

Emphasising that this exercise should continue, Modi said the government had introduced simplified income tax provisions and is working on the Jan Vishwas 2.0 Bill. A committee has been formed to review regulations in the non-financial sector, aiming to make them modern, flexible, people-friendly, and trust-based, he said, underscoring the significant role of the industry in this exercise.

PM Modi encouraged the stakeholders to identify problems that take longer to resolve, suggest ways to simplify processes, and guide where technology can be used to achieve quicker and better results.