In a recent address at the ET World Leaders Forum 2025 in New Delhi, Indian Prime Minister Narendra Modi made significant announcements regarding India’s economic trajectory and technological advancements, particularly in the semiconductor industry.
Economic Growth and Global Role
PM Modi emphasized that India is on the verge of becoming a significant player in the global economy, projecting the country’s contribution to reach 20% shortly. He attributed this potential growth to the macroeconomic stability established over the past decade. The Prime Minister indicated that despite the challenges posed by the Covid-19 pandemic, India has maintained strong economic fundamentals.
Highlights from the address concerning economic growth included:
- India’s current fiscal deficit is predicted to decrease to 4.4%, a feat considering the economic impact of Covid-19.
- The country is recognized as the fastest-growing major economy and is on track to become the third-largest economy globally.
- His vision for the economy focuses on "quantum jumps" rather than incremental changes, promoting a faster pace of growth.
Macroeconomic Stability
PM Modi underscored the importance of sustained macroeconomic stability for fostering resilience in the Indian economy. Key indicators of this stability include:
- A robust banking system and low inflation rates.
- Controlled current account deficit and strong foreign exchange reserves.
- A surge in monthly investments from domestic investors.
These elements contribute to a solid foundation for future growth, enabling India to withstand economic shocks effectively and emerge stronger.
Technological Advancements: The ‘Made in India’ Chip
A particularly noteworthy announcement from Modi was that India is expected to launch its first ‘Made in India’ semiconductor chip by year-end. This initiative comes as part of a broader push towards enhancing India’s capabilities in technology and semiconductors, which is critical for the nation’s self-reliance in the tech sector.
- The establishment of semiconductor factories across the country signifies a strategic move to build a self-sufficient semiconductor manufacturing ecosystem.
- In addition to semiconductors, Modi highlighted ongoing efforts toward the development of 6G technology.
Space Ambitions and the Gaganyaan Mission
Modi’s address also outlined India’s stellar achievements in space exploration. India has successfully conducted over 60 space missions in the last 11 years and achieved space docking capabilities this year. Notably, preparations for the Gaganyaan mission, which aims to send Indian astronauts into space, are in full swing.
- The Prime Minister expressed optimism about India’s future in space, mentioning plans for several missions and the potential establishment of a domestic space station.
- There is an emphasis on opening the sector to private enterprises, with the growth of over 300 space startups since 2014.
Vision for 2047: Aatmanirbhar Bharat
The long-term vision set for India was encapsulated in the phrase "Viksit Bharat," or "Developed India," by the year 2047, marking 100 years of independence. The emphasis is on self-reliance (Aatmanirbhar Bharat) across various sectors, including manufacturing, technology, and clean energy.
Addressing Public Concerns: Reforms and Future Prospects
Modi spoke on several reforms aimed at streamlining taxation, improving the ease of doing business, and enhancing job growth.
- Landmark reforms in the Income Tax framework and completion of GST reforms were touted as vital steps toward a more user-friendly tax landscape.
- The Prime Minister projects a future where manufacturing will rise, demand will shift positively, and the overall ease of living and doing business will improve.
Diverse Perspectives and Global Implications
The forum featured various speakers, including Union Minister Piyush Goyal, emphasizing India’s economic potential. As Goyal remarked, India is seen as a resilient and rapidly growing economy. Former US Secretary of State John Kerry acknowledged India’s role in the global economic landscape, emphasizing the need to adapt to current challenges, including AI governance. Other speakers, such as Congress MP Shashi Tharoor and External Affairs Minister S. Jaishankar, highlighted the importance of balancing against global intricacies and rivalries.
Conclusion: A Defining Moment for India
Prime Minister Modi’s statements during the forum present a hopeful and ambitious outlook for India’s economic future, underscoring progress in technology, space exploration, and macroeconomic management. With a clear vision for self-reliance, India appears committed to becoming a pivotal player in the global economy and technological landscape. As the country moves toward the launching of its first semiconductor chip and continues its foray into space, the commitment to sustainable growth and innovation stands out as a hallmark of India’s development strategy.
As these developments unfold, stakeholders from various sectors will be keen to observe and participate in this transformative journey, navigating the new challenges and opportunities that the evolving economic and technological landscape presents.
