India is a country of enterprise. We have had large business houses, small and medium businesses, and a strong trading community. In the last 25 years, whether it is Gujarat or India, under the leadership of Narendra Modi, Indian Industry and entrepreneurship have developed and flourished.
Industry needs an environment of confidence, for Capital to take risks and commit for the long term. Modi created that first in Gujarat.
The Vibrant Gujarat Summit, launched in 2003, was an early expression of this approach. It became a platform for encouraging industry, understanding the concerns of enterprises and improving the ease of doing business. The idea of state-level investment summits was subsequently emulated by governments across India. Modi’s influence on Indian industry extended beyond Gujarat even when he was Chief Minister.
The Gujarat approach was also about building industrial ecosystems rather than one factory here or one factory there. Ports, roads, power, industrial estates and clusters were developed together. Dahej became a major chemicals and petrochemicals centre. Sanand developed into an automobile and engineering hub. Kutch emerged as a major centre for industry and renewable energy.
The larger lesson from Gujarat was that manufacturing responds when infrastructure, policy and entrepreneurial energy begin moving in the same direction. When Modi moved from Gandhinagar to New Delhi in 2014, his understanding of industry and manufacturing got a larger canvas to work on.
Modi has shown a willingness to reform proactively rather than out of compulsion. Several reforms have improved the environment for industry. GST created a more integrated national market and removed a web of multiple taxes. The Insolvency and Bankruptcy Code created a framework through which capital and productive assets could be redeployed. Digitisation and formalisation brought more economic activity into the formal system. The four Labour Codes consolidated and rationalised existing labour laws. Together, these changes have made it easier for businesses to operate and grow.
Infrastructure spending has addressed one of the oldest constraints on Indian industry, which is the cost and time involved in moving goods. Roads, railways, ports, airports and expressways are becoming the arteries of the economy. The Eastern and Western Dedicated Freight Corridors have created a new backbone for freight movement. This matters especially to small and medium industries that cannot afford to build their own logistics networks and fleets. Better connectivity improves their competitiveness and changes the economics of manufacturing.
The expansion of economic opportunity due to rapid economic growth has also enlarged the market available to Indian industry. Over these years, crores of Indians have moved from subsistence towards higher levels of consumption and greater participation in the formal economy.
At the same time, Indian industry has been given greater access to markets beyond India through trade agreements with countries and regions across the world. The combination of a large domestic market and expanding access to global markets gives Indian manufacturers an opportunity that was much harder to envisage even a decade ago.
Modi’s push towards manufacturing has coincided with a global moment when the world itself is reassessing where it produces and from whom it sources. The pandemic, geopolitical conflicts, technology restrictions and the weaponisation of critical materials have reinforced the importance of reliable manufacturing partners. India is well placed to benefit from this search for resilient supply chains.
The Production Linked Incentive programme marks an important stage in India’s industrial journey. With over Rs 2.4 lakh crore investments committed across 14 sectors, PLI is expanding India’s manufacturing capacity, attracting investment, creating jobs and boosting exports across a wide range of industries.
Electronics provides a clear illustration of how quickly an industrial base can change. Production and export volumes of electronics have increased in double and triple digits. Some of the world’s leading smartphone brands are now making phones in India that are being used by consumers across the world.
Semiconductors represent an even more ambitious step. India was virtually absent from semiconductor manufacturing even a decade ago. India is building chips and the ecosystem behind them, from design and fabrication to packaging, materials and talent. Modi’s vision extends beyond individual factories to strengthening India’s capabilities in electronics, AI, electric mobility and defence.
Manufacturing capability is also becoming a national security question. Modi has increasingly viewed defence manufacturing through this lens, with greater emphasis on indigenous equipment, domestic R&D and making India a global supplier of defence technology. Defence exports rose 56-fold in the last 12 years.
The next stage of Indian industry will require many more mid-sized companies capable of growing into global enterprises. They will need investors and institutions willing to back innovation and build capabilities over time. This is where investment in startups and research plays an important role.
In defence, space, drones and deep technology, young companies are entering sectors which were closed to them earlier or had high entry barriers.
Modi has consistently encouraged young people to pursue research and innovation. The Rs 1 lakh crore Research, Development and Innovation Fund intends to bring capital into deep technology, strategic technologies and sunrise sectors. This is laying a foundation for tomorrow’s industrial capabilities to be created by today’s research.
Over the decades, I have been fortunate enough to personally see Modi’s interest in industrial development and his willingness to engage with industry leaders. He is curious about what companies are building and about what other countries are doing. When he travels abroad and finds something interesting, he discusses it with Indian industrialists and encourages them to think beyond conventional dimensions. He pushes entrepreneurs to see their work as part of nation-building.
There is a larger line of thought emerging from these 25 years of Modi’s leadership. Industry is being seen as an expression of national capability, rather than just an economic activity.
Having said that, it is time for Indian Industry to think bolder. Indian Industry needs to invest more in research and innovation. It must demonstrate long term thinking rather than short term financial returns.
Modi’s focus on a Viksit Bharat is a clarion call for Indian Industry to rise and produce not only for India but also become global players.