Prime Minister urges corporate India to boost investment, innovation and manufacturing to sustain GDP growth and strengthen global competitiveness.
Prime Minister Narendra Modi has urged India’s corporate sector to significantly scale up investments, innovation and capacity expansion to sustain the country’s growth momentum and strengthen its global competitiveness. Addressing industry leaders during a high-level interaction in New Delhi, the Prime Minister emphasised that India stands at a pivotal juncture where private sector participation will determine the pace and depth of economic transformation over the coming decade.
Highlighting India’s recent economic performance, Modi pointed to sustained GDP growth rates averaging above 6.5 percent in recent fiscal years despite global economic turbulence. He stressed that while government-led infrastructure spending and policy reforms have laid a strong foundation, the next stage of development must be driven by robust private capital expenditure, technological modernisation and deeper integration into global value chains.
India has emerged as one of the fastest-growing major economies globally, supported by resilient domestic demand, digital transformation and large-scale public investment in infrastructure. According to official estimates, India’s nominal GDP crossed the $3.7 trillion mark in the previous fiscal year, positioning the country among the world’s largest economies and reinforcing its ambition to become the third-largest economy within this decade.
However, global headwinds including supply chain disruptions, geopolitical uncertainties and volatile commodity prices continue to pose risks. In this environment, the Prime Minister underscored that private sector investment is essential to maintaining macroeconomic stability and ensuring sustained job creation. “India’s growth story must now be strengthened by bold investment decisions from industry,” Modi stated, adding that the corporate sector has a crucial role in shaping a resilient and self-reliant economy.
He also highlighted that India’s demographic advantage, with more than 65 percent of the population under the age of 35, offers a unique opportunity for industrial expansion and innovation-driven growth. Leveraging this demographic dividend, he argued, requires capital infusion into manufacturing, advanced technology and skill development initiatives.
A central theme of the Prime Minister’s address was the need for Indian companies to embrace frontier technologies and scale up manufacturing capabilities. He cited the success of the Production-Linked Incentive (PLI) schemes across sectors such as electronics, pharmaceuticals and renewable energy, noting that these initiatives have already attracted billions of dollars in fresh investments.
The Prime Minister encouraged corporate leaders to invest in research and development, artificial intelligence, semiconductors, green hydrogen and digital infrastructure. He emphasised that innovation-led growth will determine India’s competitiveness in emerging industries. “The world is looking at India as a reliable partner in global supply chains,” Modi remarked, urging industry to capitalise on this opportunity.
Manufacturing’s contribution to GDP, currently hovering around 16–17 percent, must increase substantially to meet long-term economic aspirations, he said. Expanding domestic manufacturing capacity will not only reduce import dependence but also enhance export competitiveness, reinforcing India’s role in global trade networks.
The Prime Minister reaffirmed the government’s commitment to maintaining policy stability and improving the ease of doing business. Over the past decade, India has implemented significant structural reforms, including the Goods and Services Tax (GST), insolvency and bankruptcy mechanisms, and digital governance initiatives that have streamlined regulatory processes.
Modi assured industry representatives that regulatory simplification and digitisation of public services would continue. “Reform, perform and transform remain the guiding principles of our governance model,” he said, highlighting the importance of transparent systems in building investor confidence.
He also pointed to record levels of foreign direct investment (FDI) inflows in recent years as evidence of India’s growing global appeal. According to official data, cumulative FDI inflows have crossed $900 billion since 2014, reflecting sustained investor trust in the country’s growth prospects.
Investment expansion, the Prime Minister stressed, must translate into employment generation and inclusive growth. With millions entering the workforce annually, India faces the dual challenge of creating high-quality jobs while enhancing workforce skills to meet industry demands.
Modi encouraged corporate leaders to partner with government initiatives aimed at skill development and entrepreneurship promotion. Programmes such as Skill India and Startup India have already facilitated thousands of new ventures and training initiatives, contributing to a more dynamic economic ecosystem.
He further emphasised the need to integrate small and medium enterprises (SMEs) into broader supply chains, ensuring that growth benefits reach grassroots levels. Strengthening linkages between large corporations and MSMEs will foster balanced regional development and enhance economic resilience.
India’s evolving geopolitical landscape also featured prominently in the Prime Minister’s remarks. As global supply chains diversify and nations seek trusted economic partners, India has positioned itself as a stable and democratic destination for investment.
The Prime Minister underscored that recent trade agreements and strategic partnerships have opened new markets for Indian businesses. He urged corporate leaders to adopt a global outlook, leveraging India’s diplomatic engagements to expand exports and cross-border collaborations.
“India is not just participating in the global economy; it is shaping its future,” Modi asserted. By combining domestic reforms with outward-looking trade strategies, he argued, India can solidify its role as a key driver of global growth.
Prime Minister Narendra Modi’s call for India Inc to accelerate investments reflects a strategic push to sustain economic momentum and secure long-term prosperity. By encouraging innovation, manufacturing expansion, regulatory reforms and inclusive growth, the government seeks to catalyse a new wave of private sector-led development.
The message to corporate India is clear: seize the opportunity presented by favourable demographics, policy stability and global realignment. As India advances toward its ambition of becoming one of the world’s leading economic powers, the partnership between government and industry will be pivotal in shaping the next chapter of the nation’s growth story.
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