Prime Minister Narendra Modi, speaking at the ET Now Global Business Summit 2026 on Friday, said India is rapidly moving towards becoming the world’s third-largest economy, and this growing strength is the main reason why developed countries are now eager to sign Free Trade Agreements (FTAs) with India.
Addressing business leaders and global stakeholders, the Prime Minister explained that such agreements were rare before 2014 because India lacked credibility and stability on the global economic stage. He compared India’s earlier condition to that of a “poor village girl,” suggesting that wealthy nations did not see India as an attractive or reliable partner at that time.
“Why Would Anyone Trust India Then?”
PM Modi strongly criticized the governance environment during the UPA era, stating that the country was surrounded by corruption scandals, frauds, and policy uncertainty. He referred to the period as one marked by “policy paralysis,” where reforms were delayed and decision-making was weak.
He said that under such circumstances, no developed country was willing to invest trust in India or enter long-term trade agreements.
“When a nation is trapped in scams, confusion, and policy paralysis, why would anyone sign a trade deal with it?” the Prime Minister remarked.
Reforms Driven by Conviction, Not Compulsion
The Prime Minister also highlighted that reforms in earlier governments often happened only under pressure or crisis situations, which did not deliver lasting results.
He cited the example of 1991, when India was on the verge of bankruptcy, forcing economic reforms. He also referred to the formation of the National Investigation Agency (NIA) after the 26/11 attacks, and reforms in the power sector only after it had deteriorated significantly.
According to PM Modi, reforms made out of compulsion fail to bring strong outcomes, while reforms driven by vision and determination create lasting progress.
India’s Leap from 11th to Global Top 3
PM Modi noted that when the previous decade began, India stood at the 11th position among the world’s largest economies. Despite global disruptions such as the pandemic, wars, and supply chain breakdowns, India has advanced rapidly and is now firmly on track to become the third-largest economy.
He said the current decade has proven to be a period of growth, delivery, and strengthening of democracy for India.
World Order Changing, India Leading the Way
The Prime Minister also spoke about the shifting global landscape, stating that the world is moving toward a new order where the old “one-size-fits-all” development model no longer works.
He emphasized that India decided in 2015 that it would not import any foreign development model and would instead build its own path based on national needs and strengths.
UPI as a Symbol of India’s New Confidence
Highlighting India’s achievements, PM Modi cited the success of UPI (Unified Payments Interface) as an example of policy excellence and effective delivery.
He described UPI not merely as a digital tool, but as a powerful system of governance, inclusion, and innovation that brought millions of previously excluded citizens into the formal financial ecosystem.
He reiterated his government’s focus on inclusive growth, stating:
“Those whom nobody values, Modi worships.”
Key Reforms Mentioned
PM Modi also listed major reforms carried out in recent years, including:
- GST implementation
- Formation of NITI Aayog
- Removal of Article 370
- Triple Talaq law
- A shift towards an output-centric budget approach
Why FTAs Are Now Possible
Concluding his remarks, the Prime Minister said the key reason developed nations are now eager to partner with India is the transformation in India’s mindset, policy direction, and national confidence.
He said India today is a nation ready to compete globally, with clarity of purpose and a strong economic foundation—making it an attractive trade partner.
“Today’s India is full of self-confidence and prepared to compete with the world. That is why these trade deals are happening,” he stated.
With India’s rising economic stature, the Prime Minister’s remarks signal that the country is now being viewed as a powerful and dependable global partner—something that, he argued, was missing before 2014.
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