New Delhi, Feb 15 (JKNS): Asserting that India is no longer negotiating trade deals from a defensive footing, Prime Minister Narendra Modi declared that the country today stands confident and economically resilient, shaping global partnerships on its own terms. Highlighting the strategic significance of the recently signed Free Trade Agreements with 38 nations, the Prime Minister said these pacts reflect India’s growing economic strength, global credibility and its determined march towards the vision of Viksit Bharat 2047.
In an exclusive Interview of Prime Minister Narendra Modi with PTI as per news agency JKNS, On the trade deal when asked, In the last month or so, India’s global interaction has seen a sharp uptick in trade deals. The centrepieces are the trade deals with the EU and the tariff breakthrough with the US. How will these change the trajectory of India’s growth and economy?
ANSWER: India’s global interaction and integration have seen a sharp uptick over the last few years. These trade agreements may have happened recently, but they are the outcome of a more competitive domestic industry, a confident approach and an open outlook. These are rare qualities in today’s world, Modi said.
Before we speak of India’s successful trade agreements in recent years, it is important to recall where we stood just over a decade ago. During the years of the UPA government, they tried to secure some trade deals. Yet the journey was marked by uncertainty and inconsistency. Largely because their economic mismanagement left India unable to negotiate from a position of confidence, they did not lay the environment to bring negotiations to a conclusion. Talks would begin and then break down. In the end, despite prolonged negotiations, very little of real substance was achieved.
But once we came in, we led an economic resurgence through our policy-driven governance, strengthened our economic fundamentals and created a rules-based system. When we ensured political stability, policy predictability and a reform-oriented approach, the world wanted to invest in India.
Our reforms helped both our manufacturing and service sectors and encouraged productivity and competitiveness among our MSMEs. As a confident, competitive and fast-growing economy, many nations saw the benefits of pursuing trade agreements with us.
To understand the difference between the earlier approach and ours, consider the EU trade agreement. It was discussed and negotiated even under the previous government. But it was our government which eventually sealed a win-win deal for our economies.
Over the last few years, we have built a strategic and purposeful network of Free Trade Agreements. We now have FTAs with 38 partner nations, an unprecedented milestone in India’s trade history. A remarkable feature of these trade agreements is that they span continents and include countries of varying economic strength. This gives our manufacturers and producers enough diversity and depth to sell our products across many markets.
These FTAs have opened up the markets of major economies to India’s manufactured products. For instance, the India-UK FTA and the India-E.U. FTA will eliminate tariffs on 99% of our exports to these countries. Merchandise trade with both Australia and the UAE has doubled since the signing of FTAs with these countries.
Our service sector and its professionals are well known worldwide. They have already made India a hub of Global Capability Centres in different domains. These trade agreements have further boosted their opportunities with greater regulatory certainty, mutually beneficial frameworks and greater mobility across our partner nations.
Our manufacturing sector has been taking giant strides in over the past few years and these trade agreements will help integrate India and Indian products more deeply into global supply chains. They will give better returns to Indian producers and manufacturers and also contribute to increasing prosperity for our people.
The trade agreements of the past few years have come at a historic and opportune time for both our manufacturing and service sectors. They are creating a huge number of opportunities for our youth. I am confident that they will make an impact on the world with the quality and competitiveness of our goods and services. Once our youth make an impact on the minds of the common people of our partner nations, there will be no looking back.
These trade agreements are significant not merely because of tariff reductions but because of supply-chain integration and market access in advanced economies. They gradually liberalise manufacturing tariffs, deepen services integration and create new avenues for labour-intensive exports such as textiles, footwear, electronics and engineering goods. In that sense, they support structural transformation rather than simply boosting headline trade numbers.
These FTAs also anchor domestic reform to external commitments. They widen export opportunities, reduce tariff disadvantages relative to competitors, and integrate Indian firms more deeply into global value chains. They reinforce India’s transition toward becoming a more open, confident and globally engaged economy, aligned with the long-term vision of Viksit Bharat by 2047.
Q: In recent trade agreements, MSMEs have featured prominently, something we did not see earlier. Is this growing focus a reflection of stronger export competitiveness among Indian MSMEs, or does it signal a more deliberate policy shift to integrate smaller firms into global value chains?
A: We are entering into these historic trade deals from a position of strength. The vision of Made in India has filled our MSMEs with new confidence and vigour. As a country that is part of various trade agreements, making Indian products and services globally competitive is crucial. Our stance on ‘Zero Defect, Zero Effect’ has resonated deeply with the youth, start-ups and small and medium businesses.
Trade competitiveness is not only about tariffs. It is about liquidity, certification, technology adoption and compliance with global standards. Our FTAs are designed to reduce non-tariff barriers and expand market access for MSMEs in sectors such as textiles, leather, processed food, engineering goods, chemicals, handicrafts and gems and jewellery.
The objective is clear: MSMEs must move beyond being peripheral suppliers. They must become technologically upgraded, globally integrated and export-oriented enterprises that form the backbone of India’s participation in global value chains.
Many global brands, across fields as diverse as smartphones and aviation, have integrated Indian MSMEs into their value chains. The growing prominence of MSMEs in India’s recent trade agreements reflects both the improved competitiveness of Indian small businesses and a clear policy shift to integrate them into global value chains.
Through the deals we signed with Australia, New Zealand, the UK, the EU, and the U.S., we have opened access for our MSMEs, particularly in labour-intensive sectors, to export to these countries with near-zero tariffs or tariffs much lower than those of other exporting countries. This will benefit our MSMEs in textiles, leather, footwear, engineering goods, processed food, chemicals, handicrafts, gems and jewellery.
These agreements are designed not just to increase trade volumes but to embed Indian MSMEs into global markets. Additionally, our FTAs help unlock funds for R&D, testing and certification for MSMEs, and support their environmental sustainability.
These measures establish India as a reliable partner and Indian MSMEs as reliable suppliers. So, the answer is both: Indian MSMEs are more export-ready than before, and India’s trade policy now deliberately places MSMEs at the centre of global integration. These FTAs are tools to ensure that our youth are not just suppliers to the domestic market, but active participants in global trade and growth. At the macro level, these are conscious policy choices in our rapid march towards Viksit Bharat 2047.
At the same time, we are making sustained efforts to make MSMEs stronger domestically. The Economic Survey highlights the strong upward trend in bank credit to Micro and Small Enterprises and the sustained improvement in asset quality across the financial system. In this year’s Budget, we have addressed one of the most persistent constraints faced by MSMEs: access to affordable working capital. Key measures include expanding credit guarantee coverage, strengthening receivables financing through TReDS platforms, rationalising GST processes to reduce working-capital blockages, and continuing the prioritisation of MSME lending within the banking system. Public sector banks have also introduced improved credit assessment frameworks to ease the flow of finance to smaller firms.
Q: The government recently presented the Union Budget for 2026-27 in the parliament. The government’s strong push for capital expenditure has continued this year also. What are a few strategic choices your government has made in this year’s budget?
A: For a long time, high-quality infrastructure had been neglected, posing a challenge for the people and Indian businesses. Broken and outdated infrastructure has no place in a nation that aspires to create a Viksit Bharat.
Therefore, we revolutionised the sector with our speed, scale and focus on creating next-gen infrastructure, while upgrading the existing infrastructure. In the last decade or so, India has seen perhaps the most expansive infrastructure-building effort in our history, an unprecedented emphasis on quality! The most important aspect of this has been the way we have created infrastructure with the future in mind.
At a time when India is placing orders for thousands of aircraft, the number of airports has doubled.
At a time when India is urbanising rapidly, the number of cities with metro services has more than quadrupled.
At a time when rural aspirations are growing, rural roads and internet connectivity are expanding rapidly.
At a time when path-breaking trade agreements with around 38 countries have been concluded and trade volumes are set to grow massively, we have invested in a transformational expansion of our freight corridors, ports, and coastal connectivity.
The Economic Survey has underscored that capital accumulation, labour formalisation, and digital public infrastructure together have elevated India’s potential growth rate to 7%.
The recent Budget is a good reflection of our governance style and priorities.
Productive spending has been a hallmark of our government. The high Capital Expenditure reflects our focus on infrastructure and capital investment, which are strong engines for long-term growth. For the next financial year (2026-27), our overall capital expenditure stands at about Rs. 12.2 lakh crore. To put this in perspective, this represents a 5-times increase compared to 2013. This reflects a conscious strategic choice to invest in assets that create productivity, jobs, and future economic capacity rather than short-term populism. This shows that our focus is on improving the quality of life for the people, creating jobs for our youth and advancing the nation’s progress towards Viksit Bharat.
We have recorded a capital outlay of almost Rs. 3 lakh crore for Indian Railways, with a priority on high-speed connectivity, freight capacity, and passenger safety. Seven new high-speed rail corridors are proposed to be developed to connect major Indian cities, including the South High-Speed Diamond corridor, which will significantly benefit Karnataka, Telangana, Andhra Pradesh, Tamil Nadu, Kerala, and Puducherry.
At the same time, the Dedicated Freight Corridors are being expanded to decongest passenger routes and reduce logistics costs for industry.
On the roads front, allocations for national highways have increased nearly 500% compared to a decade ago.
At the same time, we are investing in sunrise sectors, including the Biopharma SHAKTI mission, the India Semiconductor Mission, the Electronics Component Manufacturing Scheme, rare-earth corridors, and chemical parks. These will provide a new impetus to jobs and investment while strengthening India’s future.
An important feature of this budget has been our continued stress on trust-based governance. Across sectors, ministries, and processes, we are massively reducing paperwork, decriminalising offences, and reducing compliance requirements. This is because we envisage the state as an enabler, and we trust the citizens. This will have a far deeper impact on people’s lives than the numbers in typical budgets.
Q: This year’s Budget was not the run-of-the-mill “bahi khata” document. It reads like a vision statement for India’s future, focused on strengthening our economy. Why, particularly now? Have you determined that India is now ready to launch into the next phase of development toward a moonshot for Viksit Bharat by 2047? Was it a now-or-never situation?
A: First of all, I would respectfully say that none of our budgets has been made with an attitude of creating a run-of-the-mill ‘bahi khata’ (बही खाता) documents. Because that is not our approach.
It is a privilege of mine that the people’s blessings have been with me for a long time, and I have served for 25 years as the head of government, first at the state level and now at the national level. If one takes a closer look at my approach in the last 25 years, it becomes clear that our work doesn’t happen in bits and pieces. There is a broader strategy, a plan of action and an effective implementation that reflects the ‘whole of the nation’ thinking, continuity of purpose and a long-term vision, progressively unfolding step by step, year after year.
Since 2014, the nation has come to view the Budget as far more than a ledger of numbers, facts, or ad hoc announcements. Each budget has contained intent, a clear-cut roadmap, and a sequence of actions, each with stated timelines for achieving them. Then we focus on implementation, and in the next Budget, it is taken to the next logical step.
In these years, we have addressed the structural gaps left behind by earlier administrations, undertaken bold structural reforms, expanded opportunities for the poor, empowered our youth, strengthened the role of women and ensured dignity and security for our farmers.
Along with this, we deployed an inclusive, tech-driven yet human-centric welfare architecture that reaches the last mile and leaves no one behind.
At every stage, the guiding focus has been nation-building, strengthening the economy and laying the foundations of Viksit Bharat.
This Budget represents the next level in this journey, imparting momentum to our ‘Reform Express.’ It is designed to accelerate momentum and prepare our youth for the opportunities of a rapidly changing world.
A few years ago, I had said from the ramparts of the Red Fort, “Yahi Samay Hai, Sahi Samay Hai” (यही समय है, सही समय है). The ‘now is the time’ sense of purpose that you are alluding to has always been there within us. But today, that sense of urgency has become a national conviction, a whole-of-society resolve.
There is a new confidence in our nation. Our national character has revealed itself even in times of different kinds of challenges and we are a bright spot of growth even in difficult global circumstances.
We are living in a post-pandemic world order that is opening new doors for India; countries eager to partner with us in trade and innovation, we have a young and increasingly skilled population; and we are focusing on strong growth accompanied by low inflation and macroeconomic stability. Our youth are creating waves in fields as diverse as space, sports and startups. We have ensured political stability and a reform-oriented policy environment. And because of these developments, people are seeing this as a historic opportunity for India.
Even as these developments were gaining momentum, the nation also witnessed the historic Azadi Ka Amrit Mahotsav, which infused the people with a sense of mission.
Further, see the behavioural transformations that have taken root over the last few years. Whether it is cleanliness or any other issue, people know that building a developed nation is not just about infrastructure or economy, but also about social habits.
So, this is not a ‘now or never’ moment born out of compulsion. It is a ‘we are ready’ moment born out of preparation and inspiration. This Budget reflects this yearning to become a developed nation.
Therefore, this budget should not be seen just as Budget 2026. This is the first budget in the second quarter of the 21st century. This budget consolidates the gains made since 2014 and builds upon them to impart momentum for the next quarter-century. Just as the decisions and initiatives taken in the 1920s laid the foundation for independence in 1947, the decisions we are taking now are laying the foundation for Viksit Bharat by 2047.
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Q: From the budget announcements, it seems that India has doubled down on the manufacturing sector, like electronics, semiconductors, defence, containers, bio-pharma and textiles. What results have been yielded by previous efforts? Why do you think manufacturing specifically has the potential to provide employment and economic growth?
A: It is well known that with industrialisation and urbanisation, large numbers of youth from rural and semi-rural areas find it aspirational to move to cities and work in globally connected industries. Only a manufacturing and services revolution could fulfil their aspirations. These should have been addressed long before our government came in, but unfortunately, not much happened in this direction under earlier governments. But we have changed the approach.
Manufacturing has always been central to our vision of Viksit Bharat. Any country that wants to grow at scale and grow quickly cannot do so by remaining only a consumer. It must become a producer of high-quality, globally competitive goods.
This conviction led to the launch of ‘Make in India’ and, over time, to targeted interventions such as the Production Linked Incentive schemes. These initiatives are instruments that are rebuilding India’s industrial base, integrating us into global value chains, and creating large-scale employment. We have also been working to support our youth in developing the skills necessary to be part of global value chains.
The outcomes of these efforts are now clearly visible. India’s goods exports have repeatedly broken earlier records in recent years. A country that imported almost all its mobile phones a decade ago is today the world’s second-largest mobile phone manufacturer, with exports
