NEW DELHI: Prime Minister Narendra Modi on Friday said the world is looking at India as a “bright spot of growth and hope”, stressing that the country’s reform journey has shifted from a “punishment model” under the earlier licence raj governments to an incentive-based approach.Addressing the Economic Times World Leaders Forum 2026, PM Modi said the world had witnessed several ups and downs in recent years and that the future of all nations was interconnected.“The world has witnessed many ups and downs over the past few years, and these experiences have made one thing abundantly clear: whether one likes it or not, the futures of all nations are interconnected. Nothing is possible in isolation,” the Prime Minister said.“‘One Earth, One Family, One Future’ was India’s guiding mantra during its G20 presidency. This spirit of a shared future, along with the accompanying sense of responsibility, offers solutions to many of the challenges facing the 21st-century world. There are various concerns regarding global growth. The world has witnessed a grim scenario recently; resources are being weaponized, and an atmosphere of mistrust is giving rise to numerous new challenges. Yet, even in such times, the world views India as a bright spot of growth and hope,” he added.
From ‘production-linked punishment’ to PLI
PM Modi criticised the earlier licence raj governments, saying they followed a “Production Linked Punishment” (PLP) model that penalised companies for increasing production.“Today’s younger generation will be surprised to hear that there was a time in our country when if a company produced more than the prescribed limit, it was punished. This was the PLP, or Production Linked Punishment, model of the earlier licence raj governments,” he said.“Those who make fun of the Make in India and Atmanirbhar Bharat campaigns today are rooted in the same thinking of the past — PLP, or Production Linked Punishment,” he said.
‘Prohibited unless permitted’ to ‘permitted unless prohibited’
PM Modi also said the government is changing the country’s regulatory philosophy by moving away from the earlier approach of requiring permission for activities unless explicitly allowed.“Earlier, the approach to regulations was ‘prohibited unless permitted’ — meaning you could not do something unless the government gave you permission. We are changing this approach to ‘permitted unless prohibited’. That means, for anything that is not explicitly prohibited by law, there should be no need to seek permission at every step.”He said the shift was intended to recast the relationship between the state, citizens and businesses around trust rather than suspicion.“The relationship between the government and citizens should be based not on suspicion, but on trust,” PM Modi added.The Prime Minister also highlighted legislative work undertaken during the Monsoon Session of Parliament.“In the Monsoon Session of Parliament, we have passed the Bankers’ Books Evidence Bill, even as the Opposition has continued to create disruptions in Parliament. We did not allow the work of serving the country to stop,” he said.“We are not just changing regulations, we are changing entire policy of regulations,” PM Modi said at the ET Global Leaders’ Forum.Speaking ahead of PM Modi’s keynote address at the summit, Times Internet chairman Satyan Gajwani said Modi had emerged as a source of stability in a world “lurching from one crisis to the next.”
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Gajwani said the global landscape was being reshaped by multiple, overlapping disruptions – two ongoing wars, an energy crisis, disrupted shipping routes, trade wars and the rapid AI revolution – creating unprecedented uncertainty for governments, businesses and economies.He said India’s political and economic stability, coupled with its growth and reform trajectory, had positioned the country as a reliable force amid growing geopolitical uncertainty.Gajwani said PM Modi’s leadership and policy continuity had helped provide businesses and investors with greater predictability, while giving India an opportunity to play a larger role in the evolving global order.
