Why in news?

Speaking at the Bloomberg New Economy Forum 2026 in New Delhi, PM Modi positioned India as a “steady pillar” in a world roiled by conflict and uncertainty.

He declared that India’s reforms stem from conviction, not compulsion, and that the country’s confidence is at an “unprecedented high.” His remarks came against the backdrop of strong growth data and global recognition of India’s economic resilience.

What’s in Today’s Article?

• India’s Economic Momentum
• Key Highlights of PM Modi’s Speech

India’s Economic Momentum

• India’s GDP growth stood at 7.8% in April-June, which PM said “rests on a strong foundation.”
• Recently, the IMF raised India’s GDP growth forecast for 2026-27 to 7% (up from 6.4% in July), citing “stronger-than-expected momentum” backed by resilient domestic demand and robust services activity.
• Last week, the RBI also raised its own growth projection to 7.1%.

Key Highlights of PM Modi’s Speech

• Key Economic Indicators Cited
  • Current account deficit: fell from over 4% of GDP (12-13 years ago) to just 0.61% last year.
  • Foreign exchange reserves: now exceed $700 billion.
  • Banking system: in its strongest position in decades.
  • These strengths have led to sovereign rating upgrades for India.
• Reforms Are Our Conviction, Not Compulsion
  • PM Modi listed India’s major structural reforms as evidence of a deliberate, sustained policy direction:
    • Goods and Services Tax (GST).
    • Insolvency and Bankruptcy Code.
    • Consolidation of 29 labour laws into four labour codes.
    • Decriminalisation of hundreds of minor business-related offences.
  • He termed this continuing momentum India’s “Reform Express,” emphasising: “For us, reforms are not a compulsion. Reforms are our conviction.”
• The Global Challenge: A Crisis of Trust
  • PM identified trust as the defining challenge of the current global moment, warning that things that once connected the world are now being turned into weapons.
  • Key concerns he raised:
    • Supply chains, energy, minerals, payment systems, and technology are increasingly becoming instruments of pressure and dominance.
    • Routes created by decades of globalisation have, in many cases, become chokepoints.
    • Artificial Intelligence (AI) is simultaneously transforming every sector.
    • Many countries face growing challenges from ageing populations.
• India’s Response: “Power to Empower”
• PM Modi framed India’s global engagement through the philosophy of “power to empower” — using its capabilities to benefit the world, not just itself.
• Examples Cited:
  • Affordable and generic medicines supplied globally.
  • Digital identity and payment solutions (referencing India’s digital public infrastructure, e.g., Aadhaar, UPI).
  • Skilled youth and a talent pool supporting global industry.
  • Over 2,000 Global Capability Centres (GCCs) in India providing services to companies worldwide.
• COVID-19 Vaccine Example: During the pandemic, India faced the question of whether vaccine manufacturing benefits would stay confined to a few countries.
  • India “chose the path of empowering humanity,” supplying vaccines to more than 100 countries — turning its manufacturing capability into a source of assistance for other nations.
• AI Impact Summit Reference: Modi noted that India’s AI summit discussed not just AI for humanity, but even how animals could benefit from AI — reinforcing his point: “the more capable and stronger India becomes, the more beneficial it will be for humanity and the world.”
• Governance Philosophy: Empowerment Over Dependency
  • PM extended this philosophy to domestic governance, stating that government authority should not be used to make citizens dependent on the system, but rather to make them capable and empowered.
  • Following this approach, India has lifted 250 million people out of poverty over the past decade — a number greater than the population of many countries in the world.
  • He also noted that India does not confine its capabilities within its own borders, but shares them with the Global South and partner countries, creating wider opportunities for innovation and new talent.

Conclusion

PM Modi’s address framed India’s economic rise not as an isolated national achievement, but as a contribution to global stability at a time when trust between nations is under strain.

By linking strong macroeconomic indicators, sustained structural reforms, and a deliberate philosophy of “power to empower,” he projected India as both a reliable economic partner and a responsible global actor — one that grows, in his words, “with the world, and for the world,” rather than at anyone’s expense.