Modi nudges India Inc to get innovative and manufacture for the world

New Delhi: Prime Minister Narendra Modi on Tuesday urged the industries to leverage India’s economic growth and global trust advantage, asking them not to be a “mere spectator” and take advantage of the opportunities available in the global supply chain. “Besides, industry should look for manufacturing innovative products using R&D which has demand overseas, and this will push exports,” he said at a post-Budget webinar with top officials from the financial regulators, key ministries and industry leaders.

Highlighting some regulatory reforms, investment and ‘ease of doing business’ in the system, the Prime Minister also said that new modes of credit delivery for micro, small and medium enterprises (MSMEs) should be developed, ensuring them to receive low-cost and timely credit. The industry should also identify new products that can be manufactured in the country to meet global demand,” Modi said.

“Our country is capable of doing this, all of you (industry) are capable, this is a great opportunity for us. I want our industry to not look at these expectations of the world as a mere spectator. We cannot remain spectators, you will have to look for your role in this, you will have to seek opportunities for yourself,” Modi added.

Modi also assured industry leaders that the government’s consistency and assurance for reforms will continue in the coming years. “I urge you to move ahead with confidence and take big steps. For the country’s manufacturing and export sectors new avenues have been opened. Five lakh first-time women and SC & ST entrepreneurs will be provided loans of up to Rs 2 crore. Today, India is a growth engine for the global economy. India has proved its resilience even in difficult times,” Modi said.

The Prime Minister also said that MSMEs need not only credit but also guidance, and suggested that industries should establish mentorship programmes to support them. “Stable policy and improved business environment are vital for any country to progress and the government has done away with over 40,000 compliances at the Centre and state level and is working on the Jan Vishwas 2.0 Bill,” he said.

In order to improve manufacturing output capacity in India, Modi also said that the government would launch two missions to promote manufacturing and exports. “The focus should be on better technology and quality products. All stakeholders should identify new products in demand globally that can be manufactured in India and encourage them to approach countries with export potential strategically,” he said.

Concerned over the geopolitical scenario, the Prime Minister also said that the world is currently experiencing political uncertainty, and the entire world views India as a growth centre. During the COVID crisis, when the global economy slowed down, India accelerated global growth,” he said.

The Prime Minister called for a strong resolve and objectivity in seeking opportunities in the global supply chain and accepting challenges. Describing India as a ‘growth engine’ for the global economy, he said the world is looking at reliable partners for global value chains, which is a ‘huge opportunity’ for India. “At a time when the world is passing through geopolitical uncertainties, India is being looked at as a growth centre,” he said.

Nudging states to undertake ease of doing business reforms, Modi also said states play an important role in increasing investments. More investments will come in as states push ease of doing business reforms. “States should compete amongst themselves. The states, which come forward with progressive policies, companies will find them as attractive destinations for investment,” Modi said.

“Today 14 sectors are benefiting from our production linked incentive or PLI scheme. More than 750 units have been approved under this scheme. It has attracted investment of over Rs 1.5 lakh crore, leading to production of more than Rs 13 lakh crore and exports of over Rs 5 lakh crore,” he added.