India recently entered into a spate of trade agreements, including with the European Union and the United States, “from a position of strength”, Prime Minister Narendra Modi said on Sunday (February 15, 2026), adding that these deals were designed to expand global market access for Indian manufacturing and services.
His remarks, made in a written interview to the Press Trust of India, comes after the first part of the Budget Session of Parliament, where the government faced an attack by the Opposition on the terms of the trade deals.
Mr. Modi defended the agreements, noting that while long negotiations by the previous Congress-led UPA government had not yielded any results, his government’s “political stability and political predictability” had restored investors’ confidence in India.
Looking beyond tariffs
The Prime Minister spoke at length about his own government’s efforts to enable the environment to strike these deals as well as his expectations from the private sector in taking advantage of these agreements.
“Trade competitiveness is not only about tariffs. It is about liquidity, certification, technology adoption and compliance with global standards. Our Free Trade Agreements (FTAs) are designed to reduce non-tariff barriers and expand market access for Micro Small and Medium Enterprises (MSMEs) in sectors such as textiles, leather, processed food, engineering goods, chemicals, handicrafts and gems and jewellery,” Mr. Modi said.
“Indian MSMEs are more export-ready than before, and India’s trade policy now deliberately places MSMEs at the centre of global integration. These FTAs are tools to ensure that our youth are not just suppliers to the domestic market, but active participants in global trade and growth,” he said.
Private sector responsibility
But, he added, “policy can only create the enabling framework. The next phase of transformation requires a decisive response from the private sector.”
“As a country that is part of various trade agreements, making Indian products and services globally competitive is crucial. Our stance on ‘Zero Defect, Zero Effect’ has resonated deeply with the youth, start-ups and small and medium businesses,” the Prime Minister said. “MSMEs must move beyond being peripheral suppliers. They must become technologically upgraded, globally integrated and export-oriented enterprises that form the backbone of India’s participation in global value chains,” he added.
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‘We are ready’
Mr. Modi explained the long-term approach behind the Union Budget for 2026-2027. “This is not a ‘now or never’ moment born out of compulsion. It is a ‘we are ready’ moment born out of preparation and inspiration. This Budget reflects this yearning to become a developed nation,” he said, explaining the Budget’s boost for capital expenditure.
He added that it was now time for the private sector to step up and take advantage of the government’s investment in infrastructure and capital expenditure. “I am proud to say that we have moved from incremental adjustments to systemic transformation,” he said.
His government’s top three reform priorities for the next decade, Mr. Modi said, would be continued structural reforms, deepening innovation, and further simplification of governance.
Defence focus
On defence expenditure and reforms, he noted that his government’s focus on the issue had visibly paid off during the course of Operation Sindoor against Pakistan.
“During the operation, one could see the benefits of the reforms we have undertaken in the last decade. Therefore, defence budgets, modernisation, etc., all these are parts of our continuous effort and need not be linked to any particular issue,” he said in the written interview.
When asked whether the higher budgetary allocation to the defence sector was part of the lesson learnt from Operation Sindoor, he answered in the affirmative. “Yes, the reality is that our country has to be strong and be prepared at all times, and that is what we are doing,” the Prime Minister said.
“In this year’s budget, a record ₹7.85 lakh crore have been allocated to the defence sector. This is 15 per cent higher than the previous budget and is also the biggest chunk allotted to any ministry or department,” he said.
Speaking on the eve of the global AI Summit to be held in New Delhi from Monday, Mr. Modi said that “tax incentives announced in the Budget are designed to accelerate investment in this space, lower the cost of building advanced facilities and position India as a globally competitive destination for data infrastructure. The result of this, too, will be a massive number of jobs for our youth. We invite the whole world’s data to reside in India!”
Published – February 15, 2026 10:05 pm IST
