Trade Talks Could Not Conclude Under UPA Rule: PM Narendra Modi Highlights India’s Global Economic Rise

Prime Minister Narendra Modi has criticised the trade negotiation record of the United Progressive Alliance (UPA) government, stating that economic mismanagement during that period prevented India from successfully concluding major international trade agreements. He emphasised that India’s recent success in signing multiple free trade agreements reflects stronger economic fundamentals, policy stability, and growing global confidence in the country.

The Prime Minister’s remarks came during an interaction where he discussed India’s economic transformation over the past decade and its expanding engagement with global partners through trade diplomacy.

PM Modi said his government's reforms helped both India's manufacturing and service sectors. | NDTV

Criticism of UPA-Era Trade Negotiations

According to Modiji, trade negotiations during the UPA period often remained inconclusive because India lacked the economic strength and policy clarity required to negotiate from a position of confidence. He suggested that weak macroeconomic conditions, uncertainty in policymaking, and governance challenges created an environment in which negotiations could begin but rarely reach completion.

He pointed out that several negotiations initiated during that era, including discussions with major economies, failed to produce final agreements despite years of engagement. In his view, a nation’s ability to conclude trade deals is closely tied to its economic credibility and internal stability, both of which were insufficient during that time.

Economic Reforms and Policy Stability After 2014

The Prime Minister credited reforms implemented after 2014 for strengthening India’s economic foundation and improving its global standing. Measures aimed at improving ease of doing business, boosting manufacturing, promoting digitalisation, and enhancing infrastructure helped create a more predictable and investment-friendly environment.

He noted that India’s emergence as one of the fastest-growing major economies has increased its attractiveness as a trade partner. Political stability and long-term policy direction, according to him, have given foreign governments and investors confidence to pursue deeper economic engagement with India.

Expansion of India’s Free Trade Agreement Network

Modiji highlighted that India has signed free trade agreements with 38 partner countries in recent years, calling it an unprecedented achievement in the country’s trade history. Agreements with nations such as Australia and the United Arab Emirates have already contributed to significant growth in bilateral trade and investment flows.

He also referred to ongoing negotiations with major partners including the United Kingdom and the European Union, which are expected to provide Indian exporters with greater market access by reducing tariffs across multiple sectors. Such agreements are designed not only to expand exports but also to integrate India more deeply into global supply chains.

Opportunities for Industry, Services, and Employment

The Prime Minister emphasised that modern trade agreements extend beyond tariff reductions and focus on broader cooperation areas such as supply-chain integration, regulatory alignment, technology exchange, and services mobility. Labour-intensive sectors including textiles, footwear, electronics, and engineering goods are expected to benefit significantly from improved market access.

He also expressed confidence that India’s skilled workforce and entrepreneurs will strengthen the country’s global presence. Increased participation in global value chains, he said, will create employment opportunities for young people and support long-term economic growth.

India’s Strategic Trade Vision

India’s trade strategy, according to policymakers, is increasingly driven by national interest and long-term economic transformation goals rather than short-term pressures. The government aims to use trade agreements as tools to enhance competitiveness, attract investment, and accelerate industrial development while protecting domestic priorities.

This approach aligns with India’s broader ambition of becoming a developed nation by 2047, with trade diplomacy playing a central role in achieving sustained economic expansion.

The MGMM Outlook

The remarks by Narendra Modi underline how economic credibility and policy consistency play a decisive role in shaping a nation’s global trade outcomes. The contrast drawn with the United Progressive Alliance period highlights the argument that incomplete negotiations were not merely diplomatic setbacks but reflections of broader structural weaknesses within the economy at that time. Over the past decade, sustained reforms, improved governance mechanisms, and a clearer long-term economic vision have strengthened India’s negotiating position, allowing it to pursue and conclude agreements with greater confidence while also attracting international trust.

The expansion of trade partnerships is presented as part of a larger national transformation strategy rather than isolated economic achievements. Modern agreements are increasingly linked with supply chains, technology flows, investment opportunities, and employment generation, which together contribute to industrial growth and global competitiveness. A stable policy environment combined with demographic strength and entrepreneurial capacity creates conditions where trade diplomacy can function as a catalyst for long-term development, reinforcing the perception of India as an emerging economic leader with growing influence in international markets.

(Sources: NDTV, Economic Times)