Insights by: Sumit Kochar
India i.e., Bharat, has witnessed substantial economic growth under the leadership of the Hon’ble Prime Minister, Shri Narendra Modi, since 2014. The latest testament to this progress is the impressive 7.7 percent surge in Gross domestic product (GDP) during the initial half of the fiscal year. Upon assuming office in 2014, India held the tenth position globally in terms of the economy. However, under Prime Minister Modi’s visionary leadership, the nation has ascended to the fifth-largest economy during his second term, with a commitment to reaching the top three economies in his third term.
In the upcoming months, India is poised to achieve the significant milestone of surpassing a $4 trillion GDP. This remarkable accomplishment underscores the profound impact of his economic policies, which strategically emphasize infrastructure development, financial inclusion, and digital transformation.
Beyond the economic domain, India, under his guidance, has extended its influence into space explorations, defense and electronics manufacturing, emerging as a global manufacturer and exporter of such products. Additionally, India has made significant strides in various other strategic industries, solidifying its standing on the global stage.
This article delves into Prime Minister Narendra Modi’s transformative achievements span across multiple sectors, showcasing his strategic and comprehensive approach towards governance.
Financial Inclusion: Initiating critical steps in 2014, the government ensured universal access to bank accounts. A staggering approximately 49 crore individuals have since reaped the benefits of this financial inclusion initiative. The implementation of direct benefit transfer across 53 Departments/Ministries emerged as a milestone, successfully channeling funds worth ₹29.39 lakh crore directly into bank accounts. This not only streamlined the process but also eradicated corruption, resulting in a substantial savings of ₹2.73 lakh crore in central schemes.
Digital India: India’s transition from a cash-dependent economy to a digitalized economy marked a significant achievement. The demonetization operation and the promotion of Unified Payments Interface (UPI) facilitated faster and more efficient transactions. As of December 2023, India celebrated an extraordinary milestone, recording 12.02 billion transactions valued at ₹18.23 lakh crore. The scale of digitalization has become so pronounced that even some first-world countries lack comparable speed in their transactions.
Social Welfare Initiatives: Several flagship programs underscore the government’s commitment to social welfare. Swachh Bharat Abhiyan (SBA), initiated in 2014, prioritized sanitation and hygiene standards, transforming India’s landscape through the construction of millions of toilets, waste management initiatives, and public awareness campaigns. Further, Jan Dhan Yojana initiated in 2014 brought over 400 million unbanked individuals into the formal banking system, promoting financial literacy and inclusion. Ayushman Bharat Yojana initiated in 2018 offers affordable healthcare coverage to over 500 million people, enhancing access to medical services and reducing financial burdens on vulnerable families.
Execution on Covid-19 pandemic: India’s response to the COVID-19 pandemic showcased resilience and global responsibility. Despite challenges, the government not only managed the crisis domestically but also exported vaccines to other countries, contributing significantly to global recovery. The efforts resulted in the vaccination of 40 crore people, showcasing a successful mission with a low mortality rate compared to first-world countries. Initiatives like Arogya Setu and the rescue of Indians stuck in China during Covid-19 further highlighted India’s preparedness and resilience.
Direct currency trade: The initiation of the Atma Nirbhar Bharat (ANB) mission aimed to reduce India’s dependency on the dollar for international transactions. This shift not only boosted India’s economic independence but also eased transactions for citizens traveling abroad. The introduction of the RuPay card on platforms like Google Pay this year marked a significant step toward reducing dollar dependency and promoting Indian currency.
GST: The implementation of the Goods and Services Tax (GST) in 2017 brought about a transformative change, unifying all the states and union territories into a single market. By streamlining and reducing taxes, the GST contributed to lowering the cost of local production. Over 200 products now enjoy a reduced GST rate of 18%, down from the previous 28%. This simplification of the tax system has facilitated businesses in maintaining single tax ledgers, enhancing overall productivity, and attracting more foreign direct investment (FDI).
Digitalization of Villages: The past nine years witnessed a gradual but drastic transformation in rural areas, fueled by government initiatives. The Ayushman Bharat Digital Mission revolutionized village health systems, with digitalized centers keeping records of diseases to facilitate necessary interventions. The government’s focus on menstrual health, discussed in the Menstrual Health Management Summit 2023, and programs promoting open talk on menstruation health and building menstrual incubators have addressed crucial aspects of rural development.
Gender Inclusiveness: From earmarking substantial funds in the gender budget statement to launching impactful initiatives like Beti Bachao Beti Padhao, Kasturba Gandhi Balika Vidyalayas, and Mahila Police Volunteers, the government has prioritized women’s empowerment. The SBA, with the construction of millions of toilets, significantly improved health and security outcomes for women. The Pradhan Mantri Ujjwala Yojana, providing free LPG cylinders, particularly benefited rural women, reducing their reliance on smoke-emitting chulhas for cooking. The government’s commitment to gender inclusiveness is further evidenced by mandatory reservations and extended maternity leaves, reinforcing the importance of women in the nation’s progress.
Make in India, Startup India and PLI: Launched in 2014, the Make in India initiative set out to encourage investment, spur innovation, and position India as a focal point for manufacturing, design, and creativity. The program has consistently drawn substantial foreign direct investment (FDI) and propelled India up the ranks in global indices like the Global Innovation Index. In the fiscal year 2021-22, FDI inflows reached an unprecedented $83.57 billion, showcasing a positive trajectory under the government. Although there was a slight dip to $70.97 billion in financial year (FY) 2022-23, the overall trend remains upward, highlighting a favorable surge in FDI.
This positive momentum is attributed to a series of liberalized FDI policies that have made India an increasingly attractive investment destination. Key sectors such as services, computer software and hardware, and trading have played pivotal roles in attracting FDI equity inflows. Notably, in FY 2023, the computer software and hardware sector alone attracted investments totaling $9.39 billion, closely followed by the services sector with $8.70 billion.
Geographically, Maharashtra, Karnataka, and Gujarat have been leaders in garnering the majority of FDI inflows, showcasing the diverse economic landscape of India. The Make in India campaign has significantly contributed to this success by aiming to position India as a global manufacturing powerhouse, enticing foreign investors. Additionally, the government’s ongoing efforts to simplify investment procedures have bolstered India’s standing on the global stage. A noteworthy statistic is that nearly 65% of total FDI inflows over the last 23 years occurred in the nine years since 2014, underscoring the improved investment climate and strategic policy reforms.
Startup India, at the forefront of efforts to nurture innovation and startups, offers benefits such as fast-tracking and rebates on intellectual property applications, access to a Fund of Funds worth ₹ 10,000 crore, self-certification under labor and environmental laws, and income tax exemptions for three years.
The Product Link Incentive (PLI) Scheme has become a crucial element of the Prime Minister’s vision to make India a $5 trillion economy. In the post-pandemic scenario, PLI has proven to be a significant catalyst in creating an ANB strengthening India’s manufacturing sector by incentivizing domestic and foreign investments. The PLI scheme currently targets 14 sectors of strategic and economic importance for India’s growth. By providing targeted incentives to sectors such as electronics, automobiles, pharmaceuticals, food, telecom, solar, textiles, and drones, the scheme encourages companies to invest in areas where India has the potential to become a global leader. The incentives provided by the government, including support for research and development and transfer of technology, are designed to boost manufacturing capabilities over a period of up to five years. Early estimates indicate encouraging trends in sectors such as large-scale electronics manufacturing, with investments of ₹ 4,784 crore and a total production of ₹ 2.04 lakh crore, including exports of ₹ 80,769 crore. The scheme has generated employment and led to a significant increase in exports.
Satat Bharat – Sanatan Bharat (Sustainable India): India’s commitment to sustainable development is evident through the Satat Bharat – Sanatan Bharat program. The country’s climate action strategies focus on clean and efficient energy systems, disaster-resilient infrastructure, and planned eco-restoration. Achievements include the electrification of 100% of villages, the reduction of 38 million tonnes of CO2 emissions annually through energy-efficient appliances, and the provision of clean cooking fuel to 80 million poor households. India has set ambitious targets, including installing 450 GW of renewable energy and restoring 26 million hectares of degraded land by 2030. Globally, India ranks third in renewable power, fourth in wind power, and fifth in solar power. The launch of the Coalition for Disaster Resilient Infrastructure and the International Solar Alliance demonstrates India’s commitment to global partnerships for climate action and disaster resilience.
Garib Kalyan Rojgar Abhiyaan: Launched in June 2020, the Garib Kalyan Rojgar Abhiyaan is a massive employment-cum-rural public works initiative. The scheme aims to boost employment and livelihood opportunities for migrant workers returning to villages, especially in the aftermath of the COVID-19 outbreak. It focuses on durable rural infrastructure and provides modern facilities like internet access in villages. The Ministry of Rural Development emphasizes various aspects of rural development, including education, skill mapping, access to bank credit, water conservation, health and nutrition, electricity, housing, open defecation-free initiatives, waste disposal, roads, internet connectivity, LPG distribution, direct benefit transfers, social protection for the elderly, sports, and the promotion of non-agricultural activities. The comprehensive approach aims to make rural areas self-sustainable and prevent large-scale outward migration to cities.
PM Gati Shakti National Master Plan: In a significant push to enhance infrastructure, ease of doing business, and improve logistical performance, the central government has implemented the PM Gati Shakti National Master Plan. This integrated and holistic approach for planning and executing multi-modal and last-mile connectivity has played a crucial role in reducing high logistics costs and is envisioned to boost exports, making Indian micro, small, and medium enterprises (MSMEs) globally competitive. The initiative emphasizes coordination and monitoring for the establishment of modern infrastructure in the country.
Focus on Traditional Medicines: Recognizing the global demand for Indian traditional medicines and therapies, India has been proactive in promoting the Ayush sector. The strong demand, with a global market size of $657.5 billion in 2020 and global exports of $31.0 billion in 2019, showcases the sector’s significance. With a growth rate of 17% from 2014 to 2020, the Ayush industry is projected to achieve a turnover of $20.6 billion in 2022. To sustain this growth, the World Health Organization (WHO) launched the first Global Centre for Traditional Medicine in India. The government’s efforts include facilitating unhindered access to Ayush treatments, introducing a special Ayush visa category to promote medical tourism, and developing a network of Ayush parks to promote research and manufacturing of Ayush products and services for foreign customers and investors.
Education Reforms: The National Education Policy (NEP) of 2020 is a historic and transformative initiative that addresses the country’s expanding developmental imperatives. The policy aims to revise and revamp all aspects of the educational structure, including regulation and governance, to create a system aligned with the aspirational goals of the new era in education. Since the inception of NEP, various efforts have been launched to meet the policy’s objectives of access, equity, inclusion, and quality. These efforts focus on honing interdisciplinary skills and knowledge among students at elementary, secondary, and senior secondary levels. In response to the global shift towards a digital learning ecosystem, the government has implemented initiatives to facilitate multi-mode access to online teaching and learning methods for students and teachers across the country.
Establishment of GIFT City: Established under the visionary leadership of Prime Minister Narendra Modi, the Gujarat International Finance Tec-City (GIFT City) has emerged as a paradigm of India’s commitment to fostering economic growth and innovation. The city’s strategic planning and development have strategically positioned it as a global financial and technological powerhouse. Through a meticulously crafted regulatory framework and investor-friendly policies, GIFT City has become a magnet for FDI, attracting multinational corporations across sectors like banking, finance, insurance, and technology. The International Financial Services Centre (IFSC) within GIFT City stands as a testament to its prowess in the financial realm, providing an optimal environment for global transactions, fund management, and capital market activities. The city’s commitment to technological innovation is evident in the establishment of cutting-edge research and development centers, technology incubators, and innovation labs. This convergence of finance and technology within GIFT City has resulted in groundbreaking solutions, redefining traditional business operations and contributing significantly to India’s economic growth on a global scale. GIFT City’s transformative impact extends to addressing unemployment concerns by becoming a substantial job creator. The city’s focus on skill development and talent acquisition has not only attracted skilled professionals from within India but has also led to a brain gain for the nation, further fueling socio-economic development in the region. Moreover, GIFT City’s success has played a pivotal role in elevating India’s global standing in both the financial and technological spheres. The city’s recognition as a leading financial center underscores India’s potential as an emerging market, signaling the country’s growing influence in the global economy.
Rebirth of Kashmir: Following the constitutional amendments and reorganization of the former State of Jammu and Kashmir, the Union Territories of Jammu and Kashmir, and Ladakh have seamlessly integrated into the national mainstream. This integration has ensured that the residents now enjoy all the rights enshrined in the Constitution of India and benefit from the central laws, aligning them with the privileges enjoyed by citizens across the country. This transformative change has catalyzed socio-economic development in both Union Territories, fostering empowerment, the abolition of unjust laws, and the establishment of equity and fairness for those historically marginalized.
The comprehensive development initiatives implemented in the new Union Territories, namely Jammu and Kashmir and Ladakh, signify a pivotal shift towards peace and progress. Notable advancements include the empowerment of the populace, rectification of discriminatory practices, and the implementation of holistic development strategies. The recent electoral processes for Panchayati Raj Institutions, including Panches and Sarpanches, Block Development Councils, and District Development Councils, have established a robust three-tier system of grassroots-level democracy in Jammu and Kashmir.
Moreover, the region has witnessed an unparalleled economic transformation, with the Gross State Domestic Production (GSDP) doubling over a remarkably brief four-year period. Recognizing Jammu and Kashmir as an agrarian economy, where more than half of the workforce is engaged in agricultural activities, the government is diligently investing in crucial areas. These investments are strategically guided by the recommendations of the Dr. Mangla Rai Committee, reflecting a concerted effort to revitalize and enhance the agricultural sector.
Making of Temple Economy: The long-anticipated construction of the Ram Mandir in Ayodhya has become a significant catalyst for transformative change in the once tranquil town. With the temple’s inauguration approaching in a matter of weeks, Ayodhya is undergoing a substantial infrastructure overhaul, sparking a notable surge in real estate activity. The city is experiencing a remarkable property boom, with prices escalating up to three times their original value, as investors, hoteliers, and business owners flock to capitalize on the burgeoning opportunities. This phenomenon exemplifies the emergence of a “temple economy,” wherein the construction of a religious monument precipitates comprehensive development in its vicinity. The heightened interest in Ayodhya is not merely confined to property transactions; it extends to the hopes of locals who anticipate increased tourism, translating into newfound sources of income for many residents.
Recognizing the potential, the government has formulated a vision document for Ayodhya, envisioning the creation of four lakh direct jobs and eight lakh indirect jobs in the city. This strategic vision encompasses ambitious projects, including the Ramayana Spiritual Theme Park spread across 2,300 acres, a tourism facility center, and an international museum. Furthermore, the Sri Ram Janmabhoomi Tirth Kshetra Trust, responsible for executing the Ram Mandir plans, aims to construct world-class pilgrimage projects such as the “Ramayan campus” spanning 500 to 1,000 acres. This campus is set to feature miniature replicas of Ayodhya, Janakpur, Dandakaranya forest, Lanka, the river Ganga, and even the sea, offering devotees a immersive experience of the Ramayana era.
It is noteworthy that, during the Sri Ram Janmabhoomi movement, the economic potential of Ayodhya was not a central focus. However, the ongoing developments indicate a rapid economic transformation in the city and its surrounding region. The construction of the Ram Mandir is not only a cultural and religious milestone but also a harbinger of socio-economic revitalization. As millions of devotees are expected to visit from across the country and the world, Ayodhya’s tourism sector is poised for substantial growth, providing a significant impetus to the local economy.
Development of North East India: Recognizing the historical isolation of the northeastern states from the mainland due to geographical and other challenges, the government has prioritized equitable development for both the east and west regions of the country. Initiatives such as the “PM Development Initiative for North East” emphasize the development of robust infrastructure to create livelihood opportunities for women and youth while addressing other development needs of the region. Efforts to combat connectivity challenges include establishing efficient infrastructure such as highways and waterways for multimodal and last-mile connectivity. The vibrant villages program for border villages, focused investments in laying down optical fiber, and the proposal to build an underwater channel to provide year-long connectivity between Assam and Arunachal Pradesh are examples of extensive measures taken. These efforts have resulted in significant improvements in air, road, rail, waterways, and telecom connectivity, positioning the picturesque northeast as a major hub of socio-economic activity.
Proactive and assertive foreign policy: India’s foreign policy has seen significant changes since 2019, when the Bharatiya Janata Party (BJP) government led by Prime Minister Narendra Modi was re-elected. These changes have been driven by a number of factors, including India’s growing economic and military power, the rise of China, and the changing global order.
There have been some major changes in the foreign policy of India ever since Prime Minister Narendra Modi came to power.
- In the past, India was known for its non-aligned stance, but under Prime Minister Narendra Modi, it has become more willing to engage with other countries and play a leading role in global affairs with its ‘multi-alignment’ or ‘issue-based alignment’ strategy. This is evident in India’s increased engagement with the United States, its membership in the Quadrilateral Security Dialogue (Quad), and its growing role in the Indo-Pacific region. Also, simultaneously participate and pursue its interests in BRICS and Shanghai Cooperation Organisation (SCO).
- India now focuses on economic diplomacy. India is now using its economic clout to build stronger relationships with other countries and to promote its own economic interests. This is evident in India’s focus on trade and investment deals, its development assistance programs, and its efforts to promote regional integration. Trade relations have been improved with all the countries and India is not neutral anymore but in fact making partnerships with all the nations.
- Mutual relations with the Middle Eastern countries like Israel, Iran, Oman, Qatar, Saudi Arabia and United Arab Emirates (UAE) have been improved exponentially. Further, India has signed a free trade agreement with the UAE. The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed on 18th February 2022, will remove 80% of tariffs on goods from both countries and eventually eliminate all tariffs within 10 years.
- The foreign policy of India is also moving from continental to maritime and increasing the influence in Indian Ocean region.
- The usage of soft power has also increased in various areas like making yoga more international and encouraging people to take more active part in yoga. Getting the non-resident indian diaspora more involved with the country. And encouraging the culture of different regions of India.
- India has also initiated the Neighborhood First Policy with all our neighboring countries like Sri Lanka, Bangladesh, Afghanistan, Maldives, Bhutan and Nepal.
- India’s diplomacy has also become more people-centric. The government is now placing a greater emphasis on connecting with the Indian diaspora and promoting Indian culture and values abroad. This is evident in the government’s “Know India” program, its “Diaspora Connect” initiative, and its support for Indian cultural events around the world.
Conclusion
Prime Minister Narendra Modi’s tenure has been marked by a transformative and comprehensive approach to governance, leaving an indelible impact on India’s socio-economic fabric and global standing. From steering the nation to becoming the fifth-largest economy to implementing key initiatives like financial inclusion, digitalization, and social welfare programs, Modi’s leadership has ushered in an era of growth and development.
The economic reforms, such as the GST and the ANB mission, coupled with strategic initiatives like Make in India, Startup India, and the PLI Scheme, have attracted FDI and positioned India as a global manufacturing hub. Additionally, the focus on sustainable development, gender inclusiveness, and employment-generation initiatives like the Garib Kalyan Rojgar Abhiyaan showcase a commitment to holistic progress.
The reorganization of Jammu and Kashmir, the construction of the Ram Mandir in Ayodhya, and the developmental push in North East India highlight the government’s dedication to addressing historical challenges and fostering inclusive growth. Moreover, proactive foreign policy initiatives have strengthened India’s position on the global stage, emphasizing multi-alignment and economic diplomacy.
As India moves forward, it is poised for continued growth under Prime Minister Modi’s leadership, with a vision that encompasses economic prosperity, social well-being, and a prominent role in global affairs. The transformative journey undertaken during these years sets the stage for a promising future, with the potential to further elevate India’s stature on the world map.
