Text of PM’s address at the Economic Times World Leaders Forum 2026

Prime Minister Narendra Modi's address at the Economic Times World Leaders Forum 2026 serves as a comprehensive report card on India's governance transformation over the past decade, framing it as a decisive break from the 'License Raj' era of 'Production Linked Punishment' (PLP) to the current 'Production Linked Incentive' (PLI) paradigm. The historical context is critical: post-Independence India adopted a state-led industrial model under the Industries (Development and Regulation) Act, 1951, which mandated licensing for capacity expansion, effectively criminalizing over-production. This stifled entrepreneurship, created artificial scarcity, and entrenched a culture of rent-seeking. The PM's revelation that companies were forced to destroy excess output underscores the perverse incentives of that regime — a system where the state viewed private enterprise with suspicion rather than as a partner in development. The shift to PLI, launched in 2020-21 across 14 sectors with an outlay of ₹1.97 lakh crore, represents a philosophical pivot anchored in Article 19(1)(g) (freedom to practice any profession) and the Directive Principles under Article 39(b)-(c) (preventing concentration of wealth). The results cited — ₹2.5 lakh crore actual investment, ₹22 lakh crore production, ₹15 lakh crore exports, and 14 lakh+ jobs — validate this approach. Crucially, the PM linked this to 'political stability' and 'policy continuity', contrasting with past governments that announced reforms but failed to implement them. This stability, derived from a single-party majority since 2014, has enabled long-term structural reforms like the Jan Vishwas (Amendment of Provisions) Act, 2023, which decriminalized 183 provisions across 42 Acts, replacing imprisonment with monetary penalties — a direct move to reduce the 'trust deficit' between state and citizen. The regulatory philosophy shift from 'Prohibited unless permitted' to 'Permitted unless prohibited' echoes the recommendations of the 2nd Administrative Reforms Commission (2005) and the R. Gandhi Committee on financial sector legislative reform. Removing 40,000+ compliances and repealing 1,500+ obsolete laws (including the 1861 Police Act-era statutes) aligns with the 'Minimum Government, Maximum Governance' mantra. The Bankers' Books Evidence (Amendment) Act, 2024, passed during the Monsoon Session despite Opposition disruptions, modernizes a 19th-century colonial law by granting legal sanctity to digital banking records — a boost for Ease of Doing Business and financial inclusion. Railway safety transformation is a standout governance achievement. Eliminating all 9,000+ unmanned level crossings (a legacy of colonial-era neglect) and deploying electronic interlocking at 6,500+ stations reduced accidents by 90% — from ~150 annually to 15-20. This reflects a 'human-centric governance' model valuing every life, consistent with Article 21 (Right to Life). The installation of 3.6 lakh bio-toilets (97% post-2014) under Swachh Bharat Mission addresses dignity and sanitation (SDG 6). Meanwhile, the Namo Bharat Rapid Rail (Delhi-Meerut) and Delhi Metro achieving 99.9% punctuality — matching Hong Kong, Paris, and New York — signals India's arrival in world-class urban mobility. Strategic reforms in geospatial data (deregulated Feb 2021), drones (liberalized Drone Rules 2021), border infrastructure (250 BRO projects in 2024-25 alone), nuclear energy (Civil Liability for Nuclear Damage Act amendments enabling private participation), and defence (41 ordnance factories merged into 7 DPSUs in 2021) collectively signal a nation shedding hesitation. The border infrastructure push, reversing the 'strategic restraint' doctrine, aligns with Article 355 (Union's duty to protect States) and responds to the 2020 Galwan clash. Nuclear reform addresses energy security under Article 39(b) as India targets 22.5 GW nuclear capacity by 2031. Future implications are profound: PLI 2.0 may target green hydrogen and semiconductors; the 'Permitted unless prohibited' model could extend to labour and land reforms; and digital governance (DPI stack) may become India's next global export. However, challenges remain — ensuring PLI benefits percolate to MSMEs, maintaining fiscal discipline amid subsidy outlays, and balancing decriminalization with regulatory enforcement. For aspirants, this address is a masterclass in linking historical policy failures to contemporary solutions through constitutional values, institutional reform, and measurable outcomes — a template for answering questions on governance, economy, and national security in UPSC, SSC, and State PSC exams.