Amid global uncertainty, Modi declares the rise of the Indian Era

New Delhi: India’s economic transformation and structural reforms have set it on a path of sustained growth, making it a favourite destination for investors amid rising global uncertainty, Prime Minister Narendra Modi asserted before a gathering of economists, bureaucrats, academicians and policymakers.

Addressing the third edition of the Kautilya Economic Conclave in New Delhi, Modi pointed out that the event was being held at a time when two major global regions—both crucial to India’s energy security—were engaged in war. 

“Amidst such a huge global uncertainty, we are here discussing the Indian Era,” the prime minister remarked, highlighting the growing global confidence in India.

“We don’t just want to reach the top but want to stay there…,” Modi told the gathering, which included representatives from 16 countries.

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The prime minister also highlighted India’s status as the world’s fastest-growing major economy, with the country’s gross domestic product, or GDP, ranked the fifth-largest globally. 

India is among the top nations globally in various spheres, including fintech, smartphone and internet usage, digital transactions, renewable energy, mobile, two-wheeler and tractor manufacturing, and its pool of scientists, he said.

“We are moving with the mantra of reform, perform, and transform, taking decisions continuously to take the country on an accelerated path of growth,” Modi said.

A reforms era

In terms of reforms, Modi said the first 100 days of the third term of his administration had been remarkable, with key decisions taken on all aspects of the economy with a focus on sustained growth. 

Over the past three months, decisions were made regarding investments worth ₹15 trillion in mega infrastructure projects, the setting up of 12 industrial nodes, and the construction of 30 million houses.

“Growth comes with widening inequality levels. But in India, growth is happening along with inclusion,” the prime minister said. “In the last 10 years, 250 million people have been taken out of poverty. We want that inequality narrows further while progress reaches everyone.”

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“Our commitment is to continue making structural reforms to make Bharat a developed nation. You can see this commitment in the work we have done in the first three months of our third term. Bold policy changes, a strong commitment to jobs and skills, a focus on sustainable growth and innovation, modern infrastructure, quality of life, and the continuity of rapid growth are reflected in the policies of our first three months,” the prime minister said, adding that the central government was also encouraging state administrations to implement reforms.

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Confidence in Bharat

Optimistic predictions about India’s growth are a pointer to the direction the country is heading in, Modi said. 

“You can see this in the data from recent weeks and months. Last year, our economy performed better than any prediction. Whether it’s the World Bank, the IMF, or Moody’s, all have upgraded their forecasts for Bharat” the prime minister said. “All these institutions are saying that despite global uncertainty, Bharat will continue to grow at a 7%-plus rate. We Indians are confident that we will perform even better than that.”

Be it manufacturing or the services sector, the world regards India as a preferred destination for investment, which is not a coincidence but a result of major reforms over the past 10 years, Modi added.

The prime minister also brought attention to India’s focus on critical technologies such as artificial intelligence and semiconductors. “Our AI mission will enhance both research and skills development in the AI field. Under the India Semiconductor Mission, investments totalling ₹1.5 trillion are being made. Soon, five semiconductor plants in Bharat will begin delivering ‘Made in India’ chips to every corner of the world,” he said.

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A period-defining era

Speaking at the Kautilya Economic Conclave earlier in the day, finance minister Nirmala Sitharaman said India’s youth and the middle class will drive a surge in consumption, innovation, and investment, with per capita income projected to increase by $2,000 in five years.

India’s young population, with 43% under 24, is yet to fully explore its consumption behaviour, Sitharaman said. “There will be an organic growth in consumption as they become full-fledged consumers. Simultaneously, a rising middle class will pave the way for strong consumption, inflow of foreign investment and a vibrant marketplace,” she said.

Sitharaman highlighted India’s leap from the tenth to the fifth largest economy within five years, maintaining high growth rates and stable inflation. She said economic policies had doubled India’s per capita income in a short span, raising living standards.

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“While it took us 75 years to reach a per capita income of $2,730, as per IMF projections, it will take only five years to add another $2,000. The upcoming decades will see the steepest rise in living standards for the common man, truly making it a period-defining era for an Indian to live in,” she said.

The minister, however, stressed that India’s economic rise will be unique. It will occur amid a less favourable global environment than that of the early 2000s, when markets like China experienced easier growth conditions.