PM Modi Addresses Kautilya Economic Conclave, Emphasizes India's Growth and Green Transition

In his address, the Prime Minister expressed gratitude for participating in the third edition of the Kautilya Economic Conclave.

Prime Minister Shri Narendra Modi addressed the Kautilya Economic Conclave today in New Delhi, organized by The Institute of Economic Growth in collaboration with the Ministry of Finance. The three-day conclave will cover various themes, including financing the green transition, geo-economic fragmentation, and policy action principles for resilience.

In his address, the Prime Minister expressed gratitude for participating in the third edition of the Kautilya Economic Conclave. He noted that the event would feature multiple sessions over the next three days, addressing critical economic issues, and expressed confidence that the discussions would be instrumental in accelerating India’s growth.

Global Context and India's Position

Shri Modi emphasized the significance of the conclave being held amid global uncertainties, including conflicts in two major regions that are crucial for the global economy, particularly regarding energy security. “Amidst such a huge global uncertainty, we are here discussing the Indian Era,” he stated, highlighting the increasing trust in India and its self-confidence.

The Prime Minister proclaimed India as the fastest-growing major economy in the world and noted its position as the fifth largest economy by GDP. He pointed out that India leads globally in FinTech adoption and smartphone data consumption, ranks second in internet users, and accounts for nearly half of the world’s real-time digital transactions. Additionally, India boasts the third largest start-up ecosystem and is ranked fourth in renewable energy capacity. Notably, India is the second-largest mobile manufacturer and the largest manufacturer of two-wheelers and tractors, with a youthful population and a robust base of scientists and technicians.

Government’s Reforms and Economic Strategy

The Prime Minister reiterated the government's mantra of Reform, Perform, and Transform, attributing its effectiveness to the reelection of a government for a third consecutive term. He emphasized the transformative changes in people's lives, visible in the public mandate, which reflects the confidence of 1.4 billion Indians—a significant asset for the government.

Highlighting the government's commitment to structural reforms, Shri Modi shared that decisions worth over ₹15 trillion (or 15 lakh crore) have been made within the first three months of the new term. He mentioned the initiation of mega infrastructure projects, including 12 industrial nodes and 3 crore new houses.

Addressing Inequality and Poverty

The Prime Minister noted the inclusive nature of India’s growth, stating that 25 crore (or 250 million) people have emerged from poverty over the last decade. He emphasized that India's progress is not only rapid but also equitable, ensuring that the benefits of development reach all segments of society.

Economic Forecasts and Investment Opportunities

Shri Modi shared positive predictions about India's economic performance, noting that institutions like the World Bank, IMF, and Moody's have upgraded their growth forecasts despite global uncertainties. He asserted that India is seen as a preferred investment destination due to substantial reforms over the last decade that have transformed the country’s macroeconomic fundamentals.

Highlighting specific reforms, the Prime Minister discussed how banking reforms have strengthened financial conditions, the Goods and Services Tax (GST) has streamlined taxation, and the Insolvency and Bankruptcy Code (IBC) has fostered a culture of responsibility and recovery. He also mentioned the liberalization of sectors such as mining, defense, and space for private players and young entrepreneurs.

Focus on Infrastructure and Manufacturing

The Prime Minister noted that Process Reforms have become an integral part of government operations, with the elimination of over 40,000 compliances and the decriminalization of the Companies Act. He stressed the importance of reducing logistics costs and highlighted the significant investments in infrastructure over the past decade.

Shri Modi also spoke about the Production Linked Incentives (PLI) program, which has led to substantial investments in manufacturing. He provided data showing that ₹1.25 trillion (or ₹1.25 lakh crore) has been invested, resulting in production and sales worth ₹11 trillion (or ₹11 lakh crore). He highlighted the growth of the space and defense sectors, noting that over 200 start-ups have emerged in the space industry, and 20% of India's defense manufacturing now comes from private companies.

Advancements in Electronics and Technology

The Prime Minister pointed out that while India was a significant importer of mobile phones a decade ago, it now manufactures over 33 crore mobile phones annually. He affirmed that all sectors in India offer excellent opportunities for investors.

Addressing the focus on critical technologies, Shri Modi shared that the government is making substantial investments in AI and semiconductors. He announced that ₹1.5 trillion (or one and a half lakh crore) is being allocated to the India Semiconductor Mission, aiming to establish five semiconductor plants that will produce chips for global markets.

Education and Research Initiatives

Emphasizing India’s role as a hub of affordable intellectual power, the Prime Minister noted that 1,700 Global Capability Centres currently operate in India, employing over 2 million skilled professionals. He underscored the government’s commitment to harnessing the demographic dividend through education, innovation, and research. The Prime Minister pointed out that a new university is established every week, and two colleges open daily, along with a doubling of medical colleges in the past decade.

Quality of Education and Skilling Initiatives

Modi stated that the government is not only increasing the quantity of educational institutions but also improving their quality. He highlighted that India’s position in the QS World University Rankings has tripled, reflecting a growing emphasis on academic excellence. The Prime Minister also mentioned a special skilling and internship package for the youth, with one crore young Indians expected to participate in the PM Internship Scheme.

Conclusion and Future Outlook

Shri Modi concluded his address by highlighting India’s research advancements, with a significant increase in research output and patents. He revealed that India’s ranking in the Global Innovation Index improved from 81st to 39th in less than a decade and announced a ₹1 trillion research fund to further strengthen the ecosystem.

The Prime Minister asserted that the world looks to India for green jobs and a sustainable future, referencing the successful outcomes of India’s G20 Presidency and the launch of the Global Biofuel Alliance. He mentioned the ambitious target of producing 5 million tons of green hydrogen by the decade's end and discussed the PM SuryaGhar Free Electricity Scheme, aimed at transforming families into solar energy producers.

With the Indian economy undergoing a transformational change, the Prime Minister expressed confidence that India is not just preparing to reach the top but is also committed to maintaining its position. He emphasized the value of inputs from discussions like the conclave in shaping government policies and governance.

Union Minister of Finance, Smt. Nirmala Sitharaman, and Shri N K Singh, President of the Institute of Economic Growth, were also present at the conclave, underscoring the importance of collaboration in achieving India's economic ambitions.