Prime Minister Narendra Modi addressed a program organized by the Confederation of Indian Industry (CII) on Tuesday. During this event, he asserted that India is on the verge of becoming the world’s largest economy.
India is on Track to Become the Third Largest Economy
In his speech, PM Modi recalled discussions during the pandemic, focusing on “Getting Throw Back.” He had assured that India would quickly return to the path of development. Today, with India growing at an 8 percent rate, the conversation has shifted to “Journey Towards Developed India.” Currently, India is the fifth largest economic power globally, and according to Modi, it won’t be long before it becomes the third largest economy. Modi emphasized his unique commitment to his promises, stating that, unlike many politicians, he remains true to his pre-election promises. He reminded the audience of his pledge that in his third term, India would achieve this economic milestone.
Overcoming Economic Challenges and Achieving New Heights
Reflecting on the state of the economy when his government took office in 2014, Modi noted that the primary concern was revitalizing the economy. Before 2014, India was known for its fragile economic state and numerous scams. The government had released a white paper detailing these issues, which Modi urged people and organizations to study. Through deliberate and strategic measures, the government has elevated India and its industries from this crisis to new heights.
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Significant Increase in Capital Expenditure
PM Modi highlighted the stark contrast in capital expenditure between his government and the previous UPA government. In 2004, the UPA government’s first budget allocated about Rs 90 thousand crore for capital expenditure. After a decade in power, this figure rose to Rs 2 lakh crore by 2014. Under the current government, the budget for capital expenditure has surged to over Rs 11 lakh crore.
Support for MSMEs
Addressing the CII conference, Modi also spoke about the benefits extended to MSMEs. In 2014, MSMEs earning Rs 1 crore had to pay presumptive tax, whereas now, those earning Rs 3 crore can avail of this benefit. Additionally, the corporate tax rate for MSMEs earning Rs 50 crore was reduced from 30 percent in 2014 to 22 percent. For companies with incomes up to Rs 400 crore, the corporate tax rate has been reduced from 30 percent to 25 percent.
