Govt committed to continuity of policy and reforms, says Modi
The PM said the world considered India a resourceful, reliable and resilient partner in an increasingly turbulent global geopolitical scenario, and his government was determined to build on this
Prime Minister Narendra Modi on Tuesday assured investors about the government’s commitment to reforms and policy continuity, reiterating his resolve to further ease regulations, fund first-time women entrepreneurs and support enterprises in becoming part of global supply chains.
The PM pointed out that the world considered India a resourceful, reliable and resilient partner in an increasingly turbulent global geopolitical scenario, and his government was determined to build on this.
Addressing his Cabinet colleagues, senior bureaucrats, policymakers and experts in a post-budget webinar that focused on exports, investment, ease of doing business and MSMEs, Modi said the first full budget of his third term exceeded expectations through important policy measures to boost manufacturing and exports.
The Union Budget, presented last month, proposed an effective capital expenditure of ₹15.5 lakh crore in FY26 and announced a manufacturing mission with focus on ease and cost of doing business.
“Today, the country is witnessing unwavering consistency in the government’s policies for more than a decade. In last 10 years, Bharat has continually shown its resolve for reforms, financial discipline, transparency and inclusive growth. Consistency and assurance for reforms are such transformations that have given renewed confidence in our industry,” the PM said. “I assure stakeholders related to manufacturing and exports that this [policy] continuity will remain the same in coming years.”
Highlighting the impact of the Jan Vishwas Act, which is aimed at reducing compliance burdens, he said that over 40,000 compliances were eliminated at the central and state levels, and this exercise would continue as the government works on the Jan Vishwas 2.0
To this end, a committee has been formed to review regulations in the non-financial sector, aiming to make them modern, flexible, people-friendly and trust-based, Modi said, urging stakeholders to identify hurdles and suggest ways to simplify processes.
“India remains a growth engine for the global economy and has proven its resilience in challenging situations,” he said, pointing at disruptions in the supply chain due to ongoing conflicts in Europe and West Asia. In such times, the world needs reliable partners that produce high-quality products and ensure supplies, and stakeholders should identify new products that could be manufactured in India, he added.
Modi said that the focus on 14 identified sectors under the production-linked incentive (PLI) scheme resulted in the arrival of over 750 units involving an investment of over ₹1.5 lakh crore, with production worth over ₹13 lakh crore, and exports exceeding ₹5 lakh crore. The ₹1.97 lakh crore PLI scheme was launched initially with three sectors in March 2020, and subsequently extended to 11 others. This demonstrates how entrepreneurs can advance in new areas when given opportunities, he said.
“The MSME sector is the backbone of India’s manufacturing and industrial growth,” the prime minister said, highlighting the government’s move to revise the definition of MSMEs in 2020.
After 14 years , a revision in MSME definition was announced in the “Atmnirbhar Bharat” package May 13, 2020. The composite definition of micro manufacturing and services units was increased to ₹1 crore of investment and ₹5 crore of turnover. The limit of small unit was increased to ₹10 crore of investment and ₹50 crore of turnover. Similarly, the limit of medium unit was increased to ₹20 crore of investment and ₹100 crore of turnover. On June 1, 2020 medium enterprises definition was further raised to ₹50 crore of investment and ₹250 crore of turnover. The Budget for FY26 on February 1, 2025 proposed to further raise their classification criteria — the investment and turnover limits — to 2.5 and 2 times respectively.
Ten years ago, MSMEs received loans of about ₹12 lakh crore, which currently increased to around ₹30 lakh crore, Modi said. He also reiterated the budget announcement of extending ₹2 crore loans to 500,000 first-time women entrepreneurs, and those from Scheduled Caste and Scheduled Tribe communities, and called for a mentorship programme to help these individuals.
