FTAs show increased global confidence in India: PM Modi

NEW DELHI: Prime Minister Narendra Modi on Friday rejected the criticism over the recent free trade agreements, asserting that few countries were willing to sign FTAs during the UPA dispensation when India was marred by scams and counted among ‘Fragile Five’ economies, while it is now capable of competing with the world.

Addressing the ET NOW Global Business Summit, the PM said UPA could conclude FTAs with only four countries, while his govt has signed agreements covering 38 countries.

“Who would have confidence in India when policy paralysis and scams marked its governance,” he said in a swipe at the UPA govt. To emphasise what has changed since 2014, he added that new policies and capabilities effected by his govt have led to a transformation.

The celebration of FTAs signed seemed to mark a rejection of the criticism by Congress and other opponents as well as the confidence that the charges against the trade deal with the US were not going to wash. “India today is full of self-confidence. It is ready to compete with the world and has built a strong manufacturing ecosystem,” he said.

Modi said the post-second World War global order is now crumbling and a new order will emerge, and India is going to be a big basis of global transformation in this century of change.

While the pandemic, conflicts and supply chain breakdowns marked this decade, it has also shown India’s resilience in this period of crisis, PM Modi said. “I am proud that unprecedented development, great delivery and strengthening of democracy have marked this decade in India amid numerous disruptions,” he said.

The PM said a decade ago, there were apprehensions that India might slip from its position of 11th-largest economy, but growing rapidly, it is now on its way to become the third biggest.

“It currently accounts for 16% of global growth and its share will only increase. It will drive the world’s growth and be its engine,” Modi said, adding he was not speaking as an astrologer.

Budgets, he said, reflect the changes ushered in by his govt. Earlier, Budget talk would revolve around outlays, allocations and what products became expensive and cheaper, but now focus is on outlay as well as outcome. “Before 2024, off-Budget borrowing was prevalent. Now off-Budget reforms are prevalent.”

Citing reforms in a host of sectors, including GST changes, education and nuclear energy, labour laws, repeal of Article 370 and waqf laws, Modi stressed reforms are now pushed round the year and technology and innovation have become the core drivers of growth.

Underlining wholesale reforms under his govt in policy, process, delivery and mindset as well, he said it would take years for building a road in border areas as permissions needed to be taken from Delhi, but the NDA dispensation has empowered local authorities to take measures as they deem fit for development.

India is riding the ‘Reform Express’ and will continue to gain speed, he said. “While earlier reforms, be it in 1991 when the economy was on the brink or during the UPA-era when NIA was formed after the 26/11 terror attack, were undertaken under compulsion, these are now powered by conviction.”

UPA carried out reforms in the power sector only after grid failures and Food Security Act was introduced when inflation soared and hunger spread in tribal areas, yet even then it was poorly implemented, he said, emphasising that reforms born out of compulsion never yielded proper results for the nation.

He located his govt’s push for reforms in the context of the new world order, which is taking shape after the weakening of post-World War II array, where each country would need to be resilient. “Digital India, e-payment system, and Jan Dhan-Aadhaarmobile trinity were not born out of compulsion, but conviction, driven by the vision of including citizens who were earlier left out,” he said.

“India today is full of selfconfidence. It is ready to compete with the world and has built a strong manufacturing ecosystem,” he said.

Lauding Modi’s leadership, The Times Group MD Vineet Jain said India has transitioned from a land of aspirations to a nation of achievements. “In an era marked by unprecedented geopolitical turbulence, India has showcased its diplomatic acumen by concluding five transformative trade agreements within a single year... The PM has positioned India as a bridge-builder in a fractured world,” he said.

The Times Group MD referred to increasing competition and monopolisation of tech businesses by global giants and said India should target building globally competitive businesses in tech and media sectors. “As social media and AI become primary consumption channels, India must establish a regulatory framework ensuring fair compensation for its media industry,” he added.

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