Modi Urges Industry to Invest in R&D, Focus on Quality for Trade Deal Success
Prime Minister Narendra Modi on Tuesday called on Indian industry to increase investment in research and development (R&D) and prioritize quality to fully capitalize on the opportunities presented by recent trade agreements. Addressing the second webinar on the Union Budget for 2026-27, Modi emphasized the demand for a shift from frugal R&D spending to a commitment to “quality, quality, quality.”
Leveraging Trade Agreements and Global Standards
Modi stressed the importance of ensuring Indian products meet global standards to maximize the benefits of trade agreements. He stated that maintaining high quality is paramount and requires “maximum strength, intelligence and focus.” The Prime Minister highlighted the need to understand the specific needs and preferences of consumers in different markets, advocating for the creation of “user-friendly products tailored to their needs.”
Sustainability and Emerging Technologies
The Prime Minister identified the carbon capture, utilization, and storage (CCUS) mission as a crucial initiative, underscoring the necessity of integrating sustainability into core business strategies. He noted that companies investing in clean technology will gain better access to new markets in the future. This point was reinforced by recent discussions with Canadian Prime Minister Mark Carney, where both leaders “underscored solutions for CCUS as a key area of cooperation” [1].
Boosting MSME Competitiveness
Modi acknowledged the positive impact of reforms aimed at improving the MSME (Micro, Small and Medium Enterprises) sector, particularly changes to MSME classification that alleviate concerns about losing government benefits as businesses expand. He highlighted ongoing efforts to improve MSME access to credit, promote technology upgrades, and build capacity. Though, he cautioned that the full impact of these efforts will only be realized when MSMEs become more competitive, increase productivity, raise quality standards, adopt digital processes, and integrate into robust value chains.
Strengthening India’s Trade Ecosystem
The Prime Minister outlined initiatives to strengthen India’s trade ecosystem, including a focus on sectors like Dedicated Rare Earth Corridors and container manufacturing. He also recognized the growing global emphasis on sustainability, noting that markets are increasingly considering environmental impact alongside cost. He reiterated the core mantras of “build more, produce more, connect more, and export more” [2].
Budget 2026-27: A Roadmap for Viksit Bharat
The Union Budget 2026-27 has been hailed as “historic” by Prime Minister Modi, laying out a clear roadmap towards a ‘Viksit Bharat’ (Developed India) by 2047 and giving fresh momentum to India’s reform push. Finance Minister Nirmala Sitharaman presented the budget, raising capital expenditure to Rs 12.2 lakh crore, with a focus on infrastructure, manufacturing, tax simplification, and long-term growth [2]. The budget also triggered political reactions, with opposition parties expressing disappointment.