Defence Minister Rajnath Singh highlighted India's economic transformation, noting a surge in free trade agreements from 4 to 38 under PM Modi. He praised India's growth to a USD 4 trillion economy and a major surge in defence exports.

Defence Minister Rajnath Singh on Tuesday highlighted a dramatic transformation in India’s international economic engagement, noting that India has successfully secured free trade agreements with 38 countries over the last 10 to 12 years under Prime Minister Narendra Modi’s leadership.

Dramatic Rise in Free Trade Agreements

Addressing the Indian diaspora during his visit to Sri Lanka, the Defence Minister contrasted India's current global trade footprint with that of the pre-2014 era. He noted the significant expansion of the country's trade network over the last decade. "Today, India's situation is such that before 2014, the UPA government was able to sign comprehensive trade agreements with only four countries. But today, the situation is such that we have signed free trade agreements with the good, big countries of the world. And so far, India has succeeded in signing its free trade agreement with 38 countries, whereas 10-12 years ago, the number of those countries was only four with whom we had a free trade agreement," Singh said.

India-EU FTA: 'Mother of All Deals'

Underlining the economic impact of this trade push, the Defence Minister pointed to the historic Free Trade Agreement (FTA) signed between India and the European Union, characterising it as the "mother of all deals" in the international arena. "The free trade agreement that has been signed between India and the European Union is being called the 'mother of all deals' in the international community right now. And I believe that this agreement opens the way to the large EU market of about 27 trillion dollars," he said.

"And this is not just a trade agreement, but it is also proof of the leadership quality of our Prime Minister Modi, along with India's diplomatic and economic capability," Singh added.

Referring to further progress in India's global economic partnerships, the Defence Minister also highlighted the implementation of the free trade agreement with the United Kingdom, noting, "And after that, you must have come to know through news agencies that in the United Kingdom, that is, with England, India's free trade agreement has also been implemented."

Rapid Economic Transformation

Additionally, Rajnath Singh highlighted India’s rapid economic transformation, stating that the country is among the fastest-growing major economies in the world and contributes more than 16% to global growth. He said that India’s economy, which stood at USD 2 trillion in 2014, has doubled to approximately USD 4 trillion over the last decade, according to an official release.

He added that amid global economic challenges, the country’s economy grew at 7.8% in the first quarter of Financial Year (FY) 2026-27. He also underlined the improvement in macroeconomic stability, saying that average inflation over the last 12 years has been approx. 4.7%, compared to 10-11% during the earlier period.

Sector-Specific Growth: Electronics, Mobile, and Auto

Singh added that the value of India’s goods and services exports has increased from Rs 45 lakh crore in 2014 to Rs 79 lakh crore in FY 2025-26. On the remarkable expansion in electronics and mobile phone manufacturing, he said electronic goods production has risen from Rs 1.9 lakh crore to over Rs 11 lakh crore, with exports witnessing a 700% increase from around Rs 38,000 crore to more than Rs 3 lakh crore. “India has also emerged as the world’s second-largest mobile phone manufacturer, with the number of manufacturing units increasing from just two in 2014 to more than 300 today. Mobile manufacturing has grown from Rs 18,000 crore to Rs 5.5 lakh crore, while mobile exports have risen nearly 163 times to Rs 2.6 lakh crore. Automobile exports increased from around Rs 50,000 crore to Rs 1.20 lakh crore annually,” he said.

Defence Sector's 'Aatmanirbhar' Journey

On the transformation of the defence sector, Raksha Mantri asserted that 12 years ago, India used to export defence equipment worth just Rs 600 crore. This figure has reached an all-time high of approx. Rs 39,000 crore, he said, adding that the defence budget, which has risen from approx. Rs 2 lakh crore in FY 2013-14 to Rs 7.25 lakh crore in FY 2025-26. This growth reflects India’s expanding capabilities and its continuing journey towards a stronger and Aatmanirbhar defence sector, the release cited him as saying.

Rajnath Singh pointed out that today India possesses the third-largest start-up ecosystem in the world, with the number of unicorns in the country increasing rapidly since 2014. This, he said, reflects the innovative spirit and entrepreneurial courage of India's youth.

Elaborating on significant reforms in taxation, Rajnath Singh highlighted that the introduction of GST established the ‘One Nation, One Tax’ regime, while tax relief measures have reduced the burden on individual taxpayers.

Impact on Public Welfare and Infrastructure

On the impact of economic growth on public welfare, Rajnath Singh stated that approximately 25 crore Indians have been lifted out of the cycle of poverty. He noted the sharp decline in poverty in both rural and urban areas and highlighted the expansion of social security coverage, stating that while social security schemes reached around 25 crore citizens in 2014, approximately 95 crore Indians are now covered by the social security net.

He also underlined the transformative impact of digital public infrastructure, noting the rapid expansion of broadband connectivity and the unprecedented growth of UPI, the release noted.

The Defence Minister also highlighted the rapid development of India’s infrastructure, including the expansion of highways, airports and other transport networks. He stated that Indian Railways is rapidly progressing towards the goal of 100% electrification. He further highlighted the role of the JAM network and Direct Benefit Transfer mechanism in ensuring that welfare benefits reach citizens directly. Rs 51 lakh crore has been transferred to people’s bank accounts through DBT, he said.

Cabinet Minister in the Sri Lankan Government Saroja Savithri Paulraj; Governor, Western Province Hanif Yusoof; Deputy Minister Sundaralingam Pradeep; High Commissioner of India to Sri Lanka Santosh Jha; senior Indian civil and military officials; and members of the Indian community attended the event. (ANI)

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