Prime Minister Narendra Modi on Tuesday called on the Indian industry to launch a manufacturing revolution to drive economic growth and expand India’s share in global trade despite the ongoing disruption in the ecosystem.

India is the ” growth engine of the world” despite the global political instability, Modi said during a post-budget webinar hosted by the finance ministry.

“I urge the industry to take big steps with confidence and open new avenues for manufacturing and exports. The government will support it through friendly policies,” Modi said.

Consistent reforms, financial discipline, and transparency have bolstered industry confidence and positioned India as a reliable global supplier, Modi said, while reaffirming the government’s commitment to continuing these policies, ensuring further impetus for manufacturing and exports.

With global supply chains facing disruption, India has a unique opportunity to become a trusted partner for high-quality, reliable manufacturing, he added.

In his speech, Modi also highlighted the success of the production-linked incentive scheme, noting that applications to set up around 750 units have been approved as part of 14 schemes attracting ₹1.5 trillion in investment and generating ₹13 trillion in production and ₹5 trillion worth of exports.

FM stresses on regulatory reforms

Finance minister Nirmala Sitharaman, who also took part in the webinar, stressed on the importance of regulatory reforms to boost business confidence and economic growth in India.

She reaffirmed the government’s commitment to decriminalizing business-related offenses, which reduce legal risks for industries and enhances operational confidence.

Emphasizing that the budget for 2025-26 places a “high degree of emphasis on deregulation and ease of doing business,” chief economic adviser V. Anantha Nageswaran said in the webinar that “economic activity with minimal compliance, inspection, and licensing requirements would foster optimism about growth.”

India cannot be complacent, CEA says

Nageswaran warned that recent policy actions worldwide could hinder global growth and stressed that economic activity must be eased to foster optimism in India.

He further said the budget focused on three critical reforms: strengthening the investment climate and ease of doing business, enhancing regulatory efficiency, and financial stability.

Nageswaran said India has become one of the world’s most attractive investment destinations, as reflected in strong foreign direct investment inflows, but that India cannot afford to be complacent.

The Economic Survey 2024-2025 presented by Nageswaran on 31 January, a day before Sitharaman presented the budget in parliament, suggests freeing up enterprises, especially small and medium businesses, highlighting regulations stifling growth.