Prime Minister shares glimpses of his address at the Economic Times World Leaders Forum 2026

Prime Minister Narendra Modi's address at the Economic Times World Leaders Forum 2026 on August 21, 2026, offers a compelling narrative of India's economic transformation from the restrictive Licence Raj era to a modern incentive-driven manufacturing ecosystem. The Licence Raj, a system of elaborate licences, regulations, and red tape that dominated Indian industry from the 1950s until the 1991 economic liberalisation, required companies to obtain government permission for production capacity, expansion, and even product mix. Under the Industries (Development and Regulation) Act, 1951, and the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969, firms producing beyond licensed capacity faced penalties — what the Prime Minister aptly termed 'Production Linked Punishment'. This stifled entrepreneurship, discouraged investment, and kept India's manufacturing share stagnant at around 15-16% of GDP for decades. The paradigm shift to Production Linked Incentive (PLI) schemes, launched in 2020-21 across 14 strategic sectors including electronics, pharmaceuticals, automobiles, and telecom, represents a fundamental reversal. Instead of penalising production, the government now offers financial incentives of 4-6% on incremental sales over base year for five years. As of 2024, these schemes have attracted investments exceeding ₹1.28 lakh crore and generated over 8 lakh jobs, with mobile phone manufacturing alone making India the second-largest producer globally. This aligns with the constitutional mandate under Article 39(b) and (c) of the Directive Principles of State Policy, which direct the state to ensure ownership and control of material resources serve the common good and prevent concentration of wealth. The governance philosophy shift from 'Prohibited unless permitted' to 'Permitted unless prohibited' finds legislative expression in the Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalised 183 provisions across 42 Acts and replaced imprisonment clauses with monetary penalties for minor, procedural, and technical violations. This reduces the compliance burden on MSMEs — which contribute 30% of GDP and employ 11 crore people — and addresses the 'inspector raj' that deterred formalisation. The removal of over 1,500 obsolete laws since 2014, including the repeal of the colonial-era Indian Telegraph Act, 1885 provisions, further streamlines the regulatory landscape. The 'Ease of Living' framework, complementing 'Ease of Doing Business', reflects a citizen-centric governance model. Initiatives like the Unified Payments Interface (UPI), which processed 131 billion transactions worth ₹200 lakh crore in FY24, the Ayushman Bharat health cover for 55 crore beneficiaries, and the PM Gati Shakti National Master Plan for multimodal connectivity, exemplify reforms that 'quietly become part of everyday life'. Internationally, this positions India as a credible alternative in global supply chains — evident in the India-Middle East-Europe Economic Corridor (IMEC) announced at G20 2023 — and strengthens its voice in forums like the WTO, where India champions development-friendly trade rules. Future implications include the potential expansion of PLI sectors to include green hydrogen, semiconductors, and deep tech, deeper decriminalisation through Jan Vishwas 2.0, and greater fiscal federalism as states compete for investments. For aspirants, this narrative connects industrial policy, constitutional economics, administrative reform, and India's rising global stature — a quintessential UPSC theme.