Bengaluru, February 11
India is in the era of cooperative federalism and it has stepped into the age of Artificial Intelligence, said Defence Minister Rajnath Singh on Tuesday in Bengaluru.
Speaking at Global Investors Meet (GIM) 2025, he asserted that Bengaluru will give India its first Foundational AI Model.
Defence minister Singh said India's technological capital Bengaluru not only creates the future of India, but also shapes it, driving innovation and progress at national and global scale.
Being home to Hindustan Aeronautics Limited and a thriving aerospace industry, Bengaluru plays a pivotal role in India's ascent to the skies, he said.
"India is in the era of Cooperative Federalism, where we work with the true spirit of Team India. Best example is the GST framework, in which representatives from both the Central and State Governments come together, to collectively decide tax rates through, consensus. This a testament, to how the Central and State Governments are collaborating, to shape the country's economy," he said.
"One of the biggest reasons behind the growing culture of Cooperative Federalism in India today, is the leadership experience of Prime Minister, who himself served as the Chief Minister of Gujarat for many years. I, too, have had the honour of serving as the Chief Minister of Uttar Pradesh," Singh said.
Singh said it was Prime Minister during his Chief Minister days in Gujarat when he pioneered the tradition of hosting Investors Summits.
"Today, this tradition has been embraced by almost every state in India, which is a positive development for country's economy. In the past, investors faced numerous challenges, and one of the biggest hurdles was red tape. India no longer presents red tape to investors. Instead, we roll out the red carpet for them," he added.
Further, he said that all levels of governance in India, including the Central Government, State Governments, and local bodies, there is a broad consensus that sustainable economic development must be driven by a market-led economy, with the private sector playing a leadership role.
"This shared commitment provides, a stable and predictable policy environment, ensuring that, businesses can invest, with confidence of policy continuity," he said.
In terms of consumption, India is already one of the world's fastest-growing markets. Several recent economic decisions are expected to further strengthen the demand environment.
The Reserve Bank of India has reduced the repo rate from 6.5 percent to 6.25 percent, making borrowing more affordable.
Also, the recent Budget has introduced a massive income tax cut.
"The relief will substantially increase the disposable income of our people," the defence minister said.
- ANI