CII President Shri Sanjiv Puri ji, eminent personalities from the industrial world, senior diplomats, business leaders from across the country joining us via VC, other dignitaries, ladies and gentlemen!
If this were a gathering of youngsters, I would have started with, "How is the Josh?" But this also seems to be the right place to start with this question. When the accomplished individuals of my country are full of enthusiasm, Bharat can never lag behind. I extend my heartfelt gratitude to CII for inviting me to this programme. I remember, during the pandemic, we had discussions, many of you will recall. The central topic was "Getting Growth Back." At that time, I assured you that India would soon be on the path to development. And where do we stand today? India is growing at an impressive rate of 8 percent. Today, we are all discussing the "Journey Towards Viksit Bharat." This transformation is not just about sentiments; it's about confidence. Currently, India is the fifth largest economic power in the world, and the day is not far when India will become the third largest economic power globally. Politicians are infamous for forgetting promises made before elections once they are over. However, I stand as an exception to this trend. I promised that in my third term, India would become the third largest economy, and we are steadily progressing towards that goal.
Friends,
When you entrusted us with the opportunity to serve the country in 2014, when we formed the government in 2014, our government faced a crucial challenge: how to bring the economy back on track. We all remember the "Fragile Five" situation and the scams worth lakhs of crores of rupees that plagued our nation before 2014. Our government presented a white paper detailing the state of the economy at that time. While I won't delve into those details now, I encourage you and organizations like yours to study and debate our past economic conditions and the challenges we faced. We have lifted Bharat and its industry out of that great crisis to reach the heights we are at today. Just a few days ago, the budget was presented, and I was looking at a well-prepared document by your organization, which I plan to study in detail. Since discussions about the budget are ongoing, I would like to share some key facts with you.
Friends,
In 2013-14, the last budget of the previous government under Dr. Manmohan Singh was Rs 16 lakh crore. Today, under our government, the budget has tripled to Rs 48 lakh crore. Capital expenditure, recognized as the most productive form of resource investment, has an intriguing trajectory. When Atal ji's government ended in 2004, the capital expenditure in the first budget of the UPA government was around Rs 90 thousand crore. After a decade in power, by 2014, the UPA government increased this to Rs 2 lakh crore. Today, our capital expenditure exceeds Rs 11 lakh crore. In comparison, while the previous government doubled its capex over a decade, our government has increased it more than fivefold. Examining different sectors, you can see how India is now focusing on the economy of every sector. Compared to the previous government's 10 years, our government has increased the railway budget by eight times, the highways budget by eight times, the agriculture budget by more than four times, and the defence budget by more than two times.
And friends,
This progress has been achieved not only through unprecedented budget increases across all sectors but also through record reductions in taxes. In 2014, MSMEs with an income of Rs 1 crore could opt for presumptive taxation. Now, MSMEs with an income up to Rs 3 crore can benefit from this scheme. In 2014, MSMEs earning up to Rs 50 crore were taxed at 30 percent, whereas today, the rate has been reduced to 22 percent. Similarly, the corporate tax rate, which was 30 percent in 2014, is now 25 percent for companies with an income up to Rs 400 crore.
Friends,
It's not just about increasing budget allocations or reducing taxes. It's also about implementing good governance. Let me illustrate this with an example. Consider, for example, a person who appears weak with a low weight but whose body swells due to illness, causing their clothes to fit tighter than before. Despite this appearance, would we consider them healthy? Would we regard them as fit? They might seem healthy on the surface, but in reality, they are not. The situation with the budget before 2014 was similar. At that time, significant announcements were made to create the impression of a healthy economy. However, these announcements were not fully implemented on the ground. The funds allocated for infrastructure were not entirely spent. These announcements made headlines, and occasionally influenced the stock market. However, the previous governments did not prioritize timely completion of projects. In contrast, over the past decade, we have transformed this scenario. You have witnessed the unprecedented speed and scale with which our government is building infrastructure.
Friends,
Today's world is rife with uncertainties. Amidst such volatility, Bharat's growth and stability are exceptional. Even in these uncertain times, Bharat's foreign exchange reserves have increased significantly. While many countries struggle with low growth or high inflation, Bharat stands out with high growth and low inflation. Despite the pandemic, Bharat's fiscal prudence has become a role model for the world. Our contribution to global goods and services exports is steadily increasing, and today, Bharat's share in global growth is 16 percent. Remarkably, Bharat has achieved this growth despite facing numerous crises over the past decade. From the most severe pandemic in 100 years to wars in different parts of the world, and major natural disasters like cyclones, droughts, and earthquakes in Bharat, we have navigated every challenge. If these crises had not occurred, Bharat's progress would have been even greater. I say this with confidence based on my belief and experience.
Friends,
Today, the nation is advancing with the vision of a developed Bharat. Over the past decade, 25 crore people have risen out of poverty. We are dedicated to enhancing the ease of living and the quality of life for our citizens.
Friends,
With Industry 4.0 in mind, we have placed significant emphasis on skill development and employment. There is a prevailing spirit among the youth to venture into entrepreneurship. Initiatives like the Mudra Yojana, Start Up India, and Stand Up India are immensely benefitting them. Through the Mudra Yojana, over 8 crore individuals have started their own businesses for the first time. Currently, there are around 1 lakh 40 thousand start-ups in the country, providing opportunities for lakhs of young people to engage in new ventures. The PM package of Rs 2 lakh crore announced in this budget has garnered widespread praise. More than 4 crore young people will directly benefit from it. This PM package is holistic and comprehensive, offering interlinked, end-to-end solutions. Its vision is clear: to make Bharat's workforce globally competitive and to ensure that India's products are competitive not only in quality but also in value. We have introduced an internship scheme to enhance the skills of our youth, increase their exposure, and provide them with easy employment opportunities. Additionally, we have ensured that those who generate jobs receive substantial incentives. Consequently, the government has announced incentives in EPFO contributions.
Friends,
The intent and commitment of our government are very clear. Our direction remains unwavering. Whether it is our dedication to putting the nation first, our ambition of a $5 trillion economy, our goal of achieving a saturation approach, our commitment to the "zero effect, zero defect" principle, our firm resolve for a self-reliant Bharat, or our long-term pursuit of a developed nation, we are working with full focus and determination. We continually expand our schemes and review their progress. You are well aware of the government's approach and our commitment to development. We are continuously setting new milestones. Therefore, I expect the industry to work alongside the government and in fact compete with us in achieving the vision of a developed Bharat, and I hope that you will surpass the government's efforts. Both the government and the industry must advance the PM package with urgency and shared responsibility. I have complete faith in your ability to meet this challenge.
Friends,
There is another critical aspect of this year's budget that will bolster our journey towards a developed Bharat: manufacturing. Over the past decade, we have witnessed a remarkable transformation in Bharat's manufacturing ecosystem. We launched the ambitious Make in India campaign, simplified FDI rules across various sectors, built Multi-modal Logistics Parks, and introduced the PLI Scheme for 14 sectors. These initiatives have significantly boosted the confidence of the manufacturing sector. In this budget, we have announced the development of Investment-Ready "Plug and Play" Industrial Parks near 100 major cities across the country. These cities will become the new growth hubs of a developed Bharat. Additionally, the government will modernize existing industrial corridors. We are also placing significant emphasis on MSMEs, which provide employment to crores of people. The government has addressed the challenges faced by MSMEs while providing them with necessary facilities. Since 2014, we have been working to ensure MSMEs receive the required working capital and credit, reduce their compliance burden and taxes, improve their market access and prospects, and formalize their operations. This budget also introduces a new credit guarantee scheme for MSMEs.
Friends,
When the budget is presented, the ensuing discussion often focuses on just a few prominent issues. Much of this discourse is driven by media agendas. In a more reflective environment, we take a deeper look at the situation. Occasionally, industry professionals or experts address these matters, but I believe that aspects of the budget should be repeatedly examined across all sectors and analyzed in detail at the micro level. For example, the budget has increased the allocation for nuclear power generation. We are creating Digital Public Infrastructure in agriculture. We will also give Bhu-Aadhaar cards to farmers to allot numbers for land identification. A provision of Rs 1000 crore venture capital has been made for the space economy. The budget also announces the Critical Mineral Mission, and we will soon start the auction of the first phase of offshore mining blocks. These announcements will open new avenues for progress and create numerous opportunities.
Friends,
As Bharat ascends to become the third largest economy in the world, new possibilities are emerging, particularly in our sunrise sectors. Technology is not only the present but also the future. The country that secures a position in the semiconductor value chain will play a pivotal role in the future. Therefore, we are taking this industry forward in Bharat. We are also promoting electronics manufacturing, and we are currently in the midst of a Mobile Manufacturing Revolution. Once an importer of mobile phones, Bharat is now among the top mobile manufacturers and exporters globally. We have developed a comprehensive roadmap for the Green Jobs Sector, focusing on green hydrogen and electric vehicles. The PM Suryaghar Yojana is a massive scheme requiring numerous vendors, with the government providing Rs 75,000 to each household, heralding a significant revolution.
The steps taken for clean energy in this budget are generating considerable discussion. In today's era, both energy security and energy transition are crucial for the economy and ecology. Additionally, we are working on small nuclear reactors, which will not only benefit the industry through energy access but also create new business opportunities across the supply chain. Our industries and entrepreneurs have always demonstrated their commitment to the nation's development. I am confident that you will make Bharat a global leader in all the sunrise sectors I have mentioned. And for me, "global leader" is not just a term—I firmly believe that my country will achieve this status.
Friends,
Our government is not lacking in political will, and you are well aware of that. The aspirations of the nation and its people are of utmost importance to us. I regard the industry and the private sector of Bharat as powerful mediums for building a developed Bharat. I view friends like you, who are wealth creators, as the primary drivers of Bharat's growth story. I take great pride in stating this, even from the ramparts of the Red Fort.
Friends,
Today, the entire world is looking at Bharat and at all of you with great expectations. Bharat's policies, dedication, determination, decisions, and the investments being made here are shaping global progress. Investors from around the globe are eager to come here, and world leaders are full of positivity about Bharat. This is a golden opportunity for Bharat's industry that we must not squander. In the Niti Aayog meeting, I urged the Chief Ministers to create investor-friendly charters for their states. There should be healthy competition among states to attract investment, and I want every state to be part of this growth. Not a single state should be left behind. By bringing more clarity in investment-related policies, creating a better environment, and ensuring good governance at every step, we can make every state in the country attractive to investors.
Friends,
Based on the experience of the past decade and a thorough understanding of global conditions, I confidently assert that when Bharat celebrates its centenary of independence, we will do so as a developed nation. We gained independence as a poor, plundered country, repeatedly looted by the world. Yet, we began our journey and, within 100 years, we will overcome all obstacles and fulfil our resolutions to celebrate a developed Bharat. Our dream is for future generations to live in a proud, developed nation, even if we ourselves are not there to witness it. Let us all move forward together to make Bharat a developed nation. To achieve this, we should contribute the best of what we have to offer to society and the country. With this spirit, I extend my best wishes to all of you.
Thank you very much!
