On Trade Deals
Question: In the last month or so, India’s global interactions have seen a sharp uptick in trade deals, including agreements with the EU and the US tariff breakthrough. How will these shape India’s growth and economy?
Answer: India’s global integration has increased significantly over recent years. These trade agreements are the result of a competitive domestic industry, a confident approach, and an open outlook—qualities that are rare in today’s world.
Over a decade ago, under the UPA government, trade deal negotiations were marked by uncertainty and inconsistency due to economic mismanagement. Talks would start but often failed to conclude. Our government, however, strengthened economic fundamentals, ensured political stability, policy predictability, and a reform-oriented approach, making India an attractive destination for global investment.
Our reforms have supported both the manufacturing and service sectors, encouraging productivity and competitiveness among MSMEs. For instance, India now has Free Trade Agreements (FTAs) with 38 partner nations, spanning continents and economies, allowing Indian manufacturers and service providers to access global markets. Agreements like the India-UK FTA and India-EU FTA remove tariffs on almost all exports, while trade with Australia and the UAE has doubled since signing FTAs.
These deals are more than tariff reductions—they integrate India into global supply chains, support labour-intensive exports, and promote structural transformation rather than just trade volume. They also encourage domestic reform, widen export opportunities, and strengthen India’s position as a globally engaged economy on the path to Viksit Bharat by 2047.
On MSMEs and Trade
Question: MSMEs have featured prominently in recent trade agreements. Does this reflect stronger export competitiveness or a deliberate policy shift?
Answer: Both. Our ‘Make in India’ vision and ‘Zero Defect, Zero Effect’ approach have strengthened MSMEs’ confidence. FTAs reduce non-tariff barriers, expand market access, and integrate Indian MSMEs into global value chains in sectors like textiles, leather, processed food, engineering goods, chemicals, handicrafts, and gems and jewellery.
These agreements ensure MSMEs are not peripheral suppliers but technologically upgraded, globally integrated enterprises. International brands increasingly rely on Indian MSMEs, showing both improved competitiveness and deliberate policy integration. Domestic measures, such as expanded credit guarantees and improved access to working capital, further strengthen MSMEs.
On Budget 2026 and Infrastructure
Question: What strategic choices has the government made in this year’s budget?
Answer: We have focused on high-quality infrastructure for next-generation growth. Airports have doubled, metro services quadrupled, rural roads and internet connectivity expanded, and freight corridors, ports, and coastal connectivity strengthened. Capital expenditure for 2026-27 is ₹12.2 lakh crore—five times the 2013 level.
High-speed rail corridors, dedicated freight corridors, national highways, and sunrise sectors like Biopharma, semiconductors, electronics, and rare-earth corridors are receiving targeted investment. The focus is on productivity, jobs, and future economic capacity rather than short-term populism.
On Manufacturing and Employment
Question: Why is manufacturing prioritized for employment and economic growth?
Answer: Manufacturing is central to India’s growth and global competitiveness. Initiatives like ‘Make in India’ and Production Linked Incentives have strengthened India’s industrial base, integrated it into global value chains, and created jobs. Electronics, defence, pharma, textiles, engineering goods, and even toys have seen record growth. Startups, especially in manufacturing, are creating significant employment opportunities.
Policy, production, and public sentiment have combined to create pride in ‘Made in India’ products. Budget 2026 strengthens this ecosystem, expands value addition, and supports Aatmanirbharta and job creation.
On IT, Data Centres, and AI
Question: How do tax incentives for IT and data centres support India’s tech ambitions?
Answer: India is leveraging its massive and diverse data pool safely and productively. Investments in data centres support AI development, create jobs, and establish India as a global tech hub. With the Digital Personal Data Protection law, talent in data science, and growing infrastructure, India is poised to lead in AI and digital innovation.
On Defence
Question: Defence outlay has increased significantly. Does this reflect lessons from Operation Sindoor or regional threats?
Answer: Budget 2026 allocates ₹7.85 lakh crore to defence, the highest ever, with 75% reserved for domestic procurement. Modernisation and indigenous production strengthen national security and industrial growth. We remain committed to supporting armed forces, ex-servicemen, and defence innovation, building on years of structural reform and preparedness.
On Reform Progress
Question: How has the Reform Express impacted citizens, and what are the top three reforms for the next decade?
Answer: Reform is ongoing. GST simplification, labour reforms, FDI in insurance, and digital initiatives like UPI have improved the economy. Startups, MSMEs, and social sector initiatives have empowered youth, women, and disadvantaged communities.
For the next decade, priorities are: structural reforms for competitiveness, innovation in technology, manufacturing and services, and simplification of governance to enhance citizen and business trust.
On Women Empowerment
Question: How does the Budget empower women?
Answer: Women’s welfare guides all government decisions. Schemes like Beti Bachao Beti Padhao, MUDRA, PM Awas Yojana, and Mahatma Gandhi Gram Swaraj empower women in entrepreneurship, education, healthcare, and the care economy. Initiatives in STEM education, AVGC Creator Labs, and Allied Health Professionals training ensure women participate fully in India’s growth.
India is building a Viksit Bharat where women play a central role in driving innovation, entrepreneurship, and social transformation.
