PM Modi Emphasizes MSMEs as Key Drivers of Economic Growth in Post-Budget Webinar

In a significant post-budget webinar titled “MSME as an Engine of Growth: Manufacturing, Exports, and Nuclear Energy Missions,” Prime Minister Narendra Modi emphasized the pivotal role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economic expansion. This webinar was part of the government’s ongoing series of discussions to ensure efficient and timely execution of budget proposals.

Addressing key stakeholders, PM Modi highlighted the government’s commitment to strengthening MSMEs through policy consistency, investment facilitation, and ease of doing business initiatives. He asserted that India’s economic resilience, despite global uncertainties, was largely attributed to bold reforms and proactive policymaking.

India’s Economic Resilience Amid Global Challenges

The global economic landscape has been highly unpredictable due to factors such as trade tensions, inflation, and geopolitical conflicts. PM Modi pointed out that while many economies struggled to recover post-pandemic, India has emerged as a stable and promising destination for investors.

Key factors contributing to India’s resilience include:

1. Structural Reforms – The government has undertaken major reforms to enhance productivity and competitiveness.
2. Robust Infrastructure Development – Mega infrastructure projects such as highways, railways, and logistics hubs have boosted industrial growth.
3. Strong Fiscal Discipline – The government’s prudent financial policies have ensured macroeconomic stability.
4. Global Investment Inflow – India continues to attract foreign direct investments (FDI) across multiple sectors.

PM Modi stressed that MSMEs have played a crucial role in India’s growth trajectory, contributing significantly to employment, exports, and industrial production.

Budget 2025: A Visionary Step for MSMEs

PM Modi lauded the Union Budget 2025 for exceeding expectations, particularly in manufacturing, exports, and industrial reforms. He emphasized that this budget has laid down a comprehensive roadmap for MSMEs, ensuring their long-term sustainability and global competitiveness.

Key Budget Highlights for MSMEs:

1. Increased Credit Support – Expansion of the Emergency Credit Line Guarantee Scheme (ECLGS) to provide additional liquidity.
2. Technology Upgradation Fund – Government incentives for MSMEs to adopt digital tools and automation.
3. Tax Relief & Compliance Reduction – Simplification of GST norms and reduction in bureaucratic hurdles.
4. Infrastructure Boost – Special economic zones (SEZs) and MSME industrial clusters to improve supply chain efficiency.
5. Export Promotion – Subsidies and incentives for MSME exports to encourage global expansion.

Ease of Doing Business: A Game Changer for MSMEs

One of the key takeaways from the webinar was the government’s efforts to improve the ease of doing business. PM Modi highlighted that over 40,000 compliance burdens have been eliminated to simplify tax provisions and encourage business-friendly policies.

Key Regulatory Reforms:

1. Implementation of the Jan Vishwas Act – Reducing legal complexities for MSMEs.
2. Single-Window Clearance System – Faster approvals and permissions for businesses.
3. Digital MSME Platforms – Streamlined access to government schemes and financial aid.
4. Flexible Labor Laws – Encouraging job creation while ensuring fair labor practices.

PM Modi urged industry leaders, policymakers, and entrepreneurs to take full advantage of these reforms to scale their businesses.

Production Linked Incentive (PLI) Scheme: Driving Manufacturing Growth

The Production Linked Incentive (PLI) scheme has emerged as a major boost for the manufacturing and export sectors. According to PM Modi, the scheme has significantly increased domestic production and attracted major investments.

PLI Scheme Achievements:

1. ₹1.5 Trillion in Investments – Over 750 approved units across 14 sectors.
2. ₹5 Trillion in Exports – Enhancing India’s global trade footprint.
3. Increased Job Creation – Thousands of new employment opportunities generated.
4. Boost to Key Industries – Growth in automobiles, electronics, textiles, and pharmaceuticals.

The Prime Minister encouraged MSMEs to integrate themselves into global supply chains by leveraging PLI incentives and technological advancements.

Research & Development: The Next Growth Frontier

PM Modi underscored the importance of research and development (R&D) in sustaining India’s industrial and technological growth. He urged MSMEs to invest in innovation and partner with research institutions to develop cutting-edge solutions.

Government Support for R&D:

1. Tax Incentives – Special deductions for R&D expenditures.
2. Industry-Academia Collaboration – Partnerships between MSMEs and universities.
3. Technology Incubation Centers – Funding and mentoring for innovative startups.
4. Skill Development Initiatives – Training programs to enhance workforce capabilities.

India aims to increase its global competitiveness by fostering innovation and technology adoption in MSMEs.

MSMEs: The Backbone of India’s Industrial Growth

MSMEs contribute to 30% of India’s GDP and 45% of total exports. PM Modi reaffirmed that strengthening this sector is crucial for India’s overall development.

Key MSME Growth Strategies:

1. Strengthening Financial Support – Easy access to loans through credit guarantee schemes.
2. Encouraging Digitization – Promoting digital payments and e-commerce platforms.
3. Promoting Sustainable Practices – Adoption of green energy and eco-friendly manufacturing.
4. Encouraging Women & Rural Entrepreneurship – Special incentives for female-led businesses.

PM Modi urged MSMEs to take full advantage of government initiatives and become global leaders in manufacturing and exports.

Global Partnerships & India’s Economic Stability

Highlighting India’s strategic importance in the global economy, PM Modi called for greater international collaborations in trade, technology, and finance.

Key Global Economic Takeaways:

1. India as a Global Manufacturing Hub – Attracting foreign investments and trade partnerships.
2. Boosting Export-Oriented MSMEs – Helping businesses expand into international markets.
3. Strengthening Bilateral Trade Agreements – Encouraging seamless trade with key global partners.

With a stable policy environment and a proactive business ecosystem, India is poised to become a leading economic powerhouse.

Moving Ahead

Prime Minister Narendra Modi’s address in the post-budget webinar reaffirmed the government’s commitment to strengthening MSMEs as the driving force behind India’s economic expansion. Through strategic reforms, financial incentives, and a business-friendly environment, MSMEs will continue to flourish as key contributors to India’s industrial and global success.

As India moves towards becoming a $5 trillion economy, MSMEs will play a crucial role in job creation, manufacturing, and exports, ensuring sustained economic growth in the coming years.