In a comprehensive address to the Rajya Sabha, Prime Minister Narendra Modi highlighted the significant strides made in reforming the banking sector, particularly in tackling the issue of Non-Performing Assets (NPAs), while underscoring the nation's robust economic growth and future potential. Modi asserted that his government had successfully freed banks from the "illness" of NPAs through decisive reforms and institutional changes.
The Prime Minister stated that a considerable amount of his time has been dedicated to repairing the image of India, which he claims was tarnished by the previous Congress-led governments. He defended his government's aggressive push for global trade integration, emphasizing that the world was once hesitant to engage in significant trade agreements with India. Today, however, India is a key player in global supply chains and a "ray of hope" amid global uncertainties.
Modi spotlighted the landmark Free Trade Agreement (FTA) with the European Union, finalized on January 27, 2026, after years of negotiations, which EU leaders have described as the "mother of all deals". This pact is expected to provide near-zero tariffs on most Indian exports, including textiles, pharmaceuticals, machinery, and gems & jewellery, while simultaneously opening new avenues for services and investment. He also referenced a trade understanding with the United States, where tariffs on Indian goods are expected to be reduced from 50 per cent to 18 per cent.
The Prime Minister contrasted these achievements with the policies of past governments, which he suggested lacked vision and determination, leaving India isolated and its economic image damaged. Modi asserted that India is moving forward with "high growth and low inflation," showcasing the inherent strength of the economy. He noted that India, once described as part of the 'fragile five', is rapidly moving towards becoming the world's third-largest economy.
Amid protests and sloganeering from opposition parties, Modi began his address in the Rajya Sabha by taking a jibe at Congress President Mallikarjun Kharge. Soon after, opposition MPs walked out of the house. Modi responded by saying, "thak gaye, chale gaye" (They got tired, they left).
The Prime Minister emphasized that India is currently "riding on the Reform Express" towards becoming a developed nation. He stated that the government is moving ahead with the vision to reform, perform, and transform. Modi said that the country has finalized trade deals with nine countries, including the "mother of all deals" with the EU. He added that the world is looking towards India with hope, as the country possesses a young talent pool.
Modi's address in the Rajya Sabha served as a strong defense of his government's economic policies and reforms, while also setting the stage for India's continued growth and development on the global stage. He pointed out that gross NPAs of public sector banks have declined from 9.11% in March 2021 to 2.58% in March 2025, indicating the success of the reforms. Comprehensive measures, including reforms in the Insolvency and Bankruptcy Code (IBC), Debts Recovery Tribunals (DRTs), and the Reserve Bank of India's (RBI) Prudential Norms for Early Resolution, have been taken to recover and reduce NPAs. The IBC has fundamentally changed the creditor-borrower relationship, taking away control of defaulting companies from promoters/owners and debarring wilful defaulters from the resolution process.