Replying to the Motion of Thanks on the President’s Address in the Rajya Sabha on Thursday, Prime Minister Narendra Modi reflected on India's economic trajectory and the remarkable speed at which it is rising.
"Today, among the world’s major economies, India is experiencing remarkably high growth. The rare combination of rapid growth and low inflation is a testament to the strength and resilience of our economy," Prime Minister Modi said.
From 'Fragile Five' to global powerhouse
Drawing attention to how the economic situation transformed from a fragile state to a blooming one, he said, "When we took on the responsibility of governing, India was counted among the ‘Fragile Five’ economies. At the time of independence, we were the world’s 6th largest economy. However, due to poor management in the intervening years, our ranking slipped to 11th. Now, we are on track to become the world’s third largest economy."
Strengthening global diplomacy
Prime Minister Modi also highlighted India's massive diplomatic strides over the last decade.
"Today, the world is rapidly progressing toward a new global order. When we analyse the current situations and circumstances objectively and without political bias, it becomes evident that there is a growing inclination toward India. As a Vishwamitra and Vishwabandhu, India has emerged as a trusted partner for many countries," he said.
Expanding trade frontiers
Speaking of recent trade deals, Prime Minister Modi said, "India is forging forward-looking trade agreements with numerous countries worldwide. Recently, we have finalised nine such deals. Among these, the most significant—often referred to as the “mother of all deals”—was signed with the 27 member states of the European Union."
The prime minister also expressed optimism that these agreements will empower the country's youth across all spheres.
"The recently signed trade deals will greatly benefit our youth. This includes young people from both rural and urban areas, as well as those from middle-class backgrounds—our sons and daughters. With the world market now open to them, new opportunities await... I want to assure our youth that I stand with you, shoulder to shoulder, and that the world is ready to welcome your talents and ambitions," he said.
Financial Inclusion and NPA recovery
Detailing the shift in financial accessibility and banking health, the prime minister highlighted the success of the MUDRA Yojana and the recovery of the banking sector.
"Through the MUDRA Yojana, more than ₹30 lakh crore in collateral-free loans have been provided to the youth of our country. A significant proportion of these loans were availed by women. In addition to expanding women’s Self-Help Groups, we have directly provided financial assistance to 10 crore women. Our MSME sector has also been supported with loans," he said.
He further noted the stabilisation of the banking system.
"I can confidently state that Non-Performing Assets (NPAs), which were at their highest during the UPA era, have now dropped to their lowest levels. Currently, NPAs are below 1%, reflecting the healthy state of our banks. Furthermore, bank profits have reached record highs."
The ‘reform express’ and structural shifts
Stressing the importance of national reforms, Prime Minister Modi noted the significant impact of recent policy changes.
"We have advanced with the guiding principle of ‘Reform, Perform, and Transform.’ As a result, the country is now on the path of Reform Express. We have implemented structural, process-related, and policy reforms. Our efforts have focussed on strengthening the manufacturing sector and supporting our entrepreneurs. I can say with confidence that India is now ready to compete on the global stage," the prime minister said.
Criticising past economic mismanagement
Prime Minister Modi was also critical of the Congress party for failing to create a conducive environment for the poor to access economic benefits.
"Before 2014, there was a prevalent phone banking culture in which politicians would make calls to influence the disbursement of loans. As a result, loans were often granted based on these calls rather than proper assessment. The poor were frequently denied access to credit, and nearly 50% of the population did not even have bank accounts. On the recommendation of Congress politicians, millions were lent to individuals who never repaid the money. During the UPA era, this led the banking system to teeter on the brink of collapse," he said.
