• 14 June 2024

9 Years Of Modi’s Governance From 1.0 to 2.0

Aug 10, 2023

In 9 years of Modi’s governance, India, a vast democracy of 1.2 billion, transforms. India, populous and growing, aims for global prominence. Article highlights political, economic impact worldwide, strategic initiatives, growth, challenges.

Join us on this captivating journey as we uncover the key milestones and remarkable achievements of India’s nine years under Modi’s Governance, and discover how the nation’s rich heritage and dynamic growth have positioned it as a force to be reckoned with in the world.

These seven key highlights showcase the significant progress made under Modi’s Governance

  • Under Modi’s Governance, India achieved a robust GDP growth rate of around 7.5% annually, making it one of the fastest-growing major economies globally.
  • Ambitious projects led to India’s third-largest road network and significant advancements in highways, railways, airports, and ports.
  • Pradhan Mantri Jan Dhan Yojana opened over 370 million bank accounts, empowering previously unbanked citizens.
  • Over 100 million toilets were constructed, improving sanitation and moving India closer to becoming open defecation-free.
  • India’s digital revolution brought over 600 million internet users, ranking second globally in internet adoption.
  • India attracted a cumulative FDI inflow of approximately $283 billion, reinforcing its appeal as an attractive investment destination.
  • Skill India trained over 10 million people, nurturing a skilled workforce and driving economic growth and job opportunities.
Before and after Modi's Governance

India’s Journey Towards Global Leadership: Economic Growth, Reforms, and Strategic Ambitions under Modi’s Governance

Economic Resilience and Growth

  • Despite the impact of the COVID-19 pandemic, India experienced a strong economic rebound in FY21/22, positioning itself as one of the fastest growing economies globally.
  • The government’s fiscal and monetary policies, along with successful vaccination campaigns, played a pivotal role in driving growth.
  • Real GDP is estimated to have expanded by 6.9% in FY22/23, driven by robust domestic demand, infrastructure investments, and increased private consumption.
  • However, challenges such as rising borrowing costs, tightening financial conditions, and inflationary pressures may moderate India’s growth to 6.3% in FY23/24.

Fiscal Consolidation and Reforms

  • India has made progress in fiscal consolidation, with the fiscal deficit estimated to decrease from over 13% in FY20/21 to 9.4% in FY22/23.
  • Public debt has also declined from over 87% to around 83% of GDP, driven by increased revenues and the gradual withdrawal of pandemic-related stimulus measures.
  • The government remains committed to increasing capital spending, particularly in infrastructure, to stimulate growth and enhance competitiveness.

India’s Path to Global Leadership

  • Prime Minister Narendra Modi envisions India as a leading power, shaping international politics rather than just being a balancing force.
  • Achieving multidimensional success is crucial, involving economic improvements, regional integration, effective military capabilities, and sustaining democracy.
  • Collaboration with the United States and other strategic partners is essential for India’s global ambitions, ensuring access to capital, technology, and support.
  • India’s ability to navigate internal reforms, strengthen state capacity, and build efficient markets will determine its ascent to great power status.

A Decade of Transformative Leadership (2014-2023)

Modi's governance from 2014-19
Modi's governance from 2019-23

India’s Influence under Modi’s Governance in the Present World: A Global Powerhouse

Political Significance

  • India, as the world’s largest democracy, holds immense political importance.
  • Its diplomatic initiatives and active engagement in international forums contribute to shaping global policies.
  • India’s pursuit of strategic partnerships and collaborations strengthens its influence in global affairs.

Economic Strength

  • India’s robust economy and market potential make it a global economic powerhouse.
  • Government initiatives and policies promote innovation, research, and development.
  • The allocation of substantial funds to science and technology sectors fosters advancements and attracts foreign investments.

Global Collaborations

  • India actively collaborates with various countries, fostering bilateral science and technology programs.
  • Engagements with countries like Denmark and ASEAN strengthen partnerships for sustainable development.
  • Initiatives such as the India International Science Festival promote creativity, innovation, and scientific advancements.

Technological Advancements

  • India’s focus on technology-driven sectors like IT, artificial intelligence, and semiconductors boosts innovation.
  • Investments from global companies and the establishment of research hubs drive technological advancements.
  • The government’s support for digital innovation accelerates problem-solving and enhances public sector services.

Social and Cultural Influence

  • India’s rich cultural heritage and diversity contribute to its soft power and global influence.
  • Indian diaspora worldwide plays a crucial role in various fields, fostering cultural exchanges and economic ties.
  • India’s emphasis on education, research, and development creates opportunities for global collaboration.

Role of India in the Present World:

Political Role

India’s Political Influence Spans Multiple Continents:

  1. South Asia: Holding a leading economic position, India’s cultural heritage is widely respected.
  2. East Asia: Building strong ties with Japan and China, India emerges as a key player.
  3. Africa: Strengthening economic and political relationships across the continent.
  4. Europe: Robust trade ties with numerous nations, India is a significant source of immigrants.
  5. North America: Attracting students and professionals for education and work opportunities.
  6. Latin America: A potential partner in trade, energy, and infrastructure development.

Economic Role:

India’s Economic Significance in the Present World:

  • Fastest-Growing Economy: With an average annual growth rate of around seven percent, India leads as the world’s fastest-growing major economy.
  • Growing Middle Class: Expected to reach 600 million by 2030, India’s rapidly expanding middle class currently comprises 300 million consumers.
  • Political and Military Power: India is a major political and military force globally, with a large military and significant contributions to UN peacekeeping operations.
  • International Organizations: India holds membership in key international organizations such as the United Nations, the World Trade Organization, and the G20.

India’s Contribution to Global Economic Growth:

  • India’s Economic Policies and Initiatives: “Make in India” and performance-linked incentives drive growth.
  • Stock Market Surge: Under Modi’s governance, Sensex and Nifty indices surged by 150%, BSE-listed firms’ market capitalization tripled.
  • Global Economic Rankings: On track to be the world’s third-largest economy by 2027, India’s GDP projected to surpass $7.5 trillion by 2031.
  • Pro-Business Reforms: Infrastructure projects, financial inclusion, and stability enhance India’s market perception under the Modi government.

Income Tax Reforms under Modi’s Government:

The Modi government implemented several income tax reforms, improving tax structures and exemptions:

  • Increasing Exemption Limits: Personal income tax exemption limits were raised, benefitting taxpayers, with Section 80C deductions and home loan interest limits also increased.
  • Health Insurance Deductions: Raised deduction limits on health insurance premiums apply to both the general public and senior citizens.
  • Standard Deduction and Other Benefits: Introduction of standard deduction, additional deductions for National Pension Scheme (NPS) contributions, and rebates for low-income individuals.
  • Tax Slab Changes: The government introduced new tax slabs, allowing taxpayers to choose between the old regime with exemptions and the new reduced tax rate without exemptions.

India’s Foreign Economic Policy under Modi:

India’s foreign economic policy, particularly in the WTO, has witnessed continuity and even increased assertiveness:

  • Trade Policy Continuity: India aligns with its historical skepticism of market integration and protectionist stance, maintaining its trade policy priorities and negotiation positions.
  • Weaponized Interdependence: The phenomenon of “weaponized interdependence” legitimizes India’s traditional trade skepticism and reluctance to integrate, given the security threats posed by deep economic interdependence.
  • Cautious Approach: Generally adopting a cautious foreign economic policy, India emphasizes national security and strategic economic interests in alignment with countries adopting market-cautionary strategies, evident in various instances.

India’s Trade Negotiation Behavior: A Closer Look at the Modi Era.

Trade-Sceptic Narrative:

India’s narrative emphasizes a reform of international trade rules rather than exploiting them to its advantage. This stance is sometimes perceived as contradictory, given India’s self-perception as a rising power. However, it reflects a belief in India’s powerlessness and victimhood, reinforced by statistics highlighting the country’s development challenges.

Instance:

India’s Ambassador to the WTO highlights the stark development divide, pointing out India’s high poverty rates, undernourished population, and disparities in domestic support for farmers compared to the United States.

Statistics:

India is home to 35.6% of the world’s poor.

  • Generally, India accounts for 24% of the world’s undernourished people.
  • Additionally, India’s per capita GDP is only 2.9% of the United States
  • Moreover, approximately 61.5% of India’s population depends on agriculture
  • With instances like this, it’s evident that domestic support per farmer in the United States is 267 times greater than in India..
  • India has 81 times more farmers per hectare than the United States.

Distributive Negotiation Strategy:

Generally, India employs a distributive strategy, refusing concessions and threatening to hold others’ issues hostage, thereby exacerbating the other party’s alternatives. It argues that developing countries should not have the same obligations as developed countries due to the vast development divide.

 Instance:

Additionally, India advocates SDT as a non-negotiable right for all developing members. Moreover, India opposes selective economic indicators used to deny the divide between developing and developed members.

Coalitions of Developing Countries:

India relies on coalitions of developing countries to advance its demands, emphasizing collective action and unity. It aligns itself with China, despite their rivalry, to preserve their right to exercise SDT status.

Instance:

India joins a joint proposal by ten countries, including China, advocating for the preservation of SDT.

By understanding India’s trade negotiation behavior, we can appreciate the complexities of its foreign economic policy and the challenges it faces in balancing economic prosperity and security. India must collaborate with allies, adopting a strategic approach considering economic and security factors in this evolving landscape.

Now Examining Critical Issues in Narendra Modi’s Economic Policies: A Data-Backed Analysis

  • Sluggish Economic Growth: Ambitious goals, but India’s GDP growth falls short of $5 trillion economy by 2025.
  • Joblessness and Unemployment Crisis: Unemployment peaked at 6.1% in 2017-18 due to demonetization and GST implementation, leading to job losses.
  • Stagnant Manufacturing and Declining Exports: “Make in India” stalled at 15% share in manufacturing, $300B exports, losing market to rivals.
  • Infrastructure Development as a Bright Spot: Highway and renewable energy progress enhance services, but resource utilization and fiscal deficits challenge.
  • Inadequate Healthcare Spending: Generally, India’s healthcare spending is globally low, with limited uptake of ambitious insurance schemes.
  • Farming Sector Reforms: Moreover, piecemeal reforms faced resistance from farmers, leading to protests and concerns about shrinking incomes.
  • Concentration of Economic Power: Generally, concerns arise over stifling innovation and hindering competition as a few large conglomerates dominate the economy.
  • Critical analysis highlights challenges and missed opportunities in Modi’s economic record, generally, urging a balanced approach for India’s growth.

CONCLUDING NOTE

Narendra Modi’s governance, in India since 2014 has been a mix of achievements and challenges, demanding a nuanced evaluation. Additionally, India’s economy grew steadily, improved business rankings, and developed essential infrastructure. Jan Dhan Yojana and Swachh Bharat boosted financial inclusion and public health. Moreover, in foreign policy, the Act East Policy and improved international relations enhanced India’s global stature. However, there are criticisms too, including concerns about unemployment, agrarian distress, and communal tensions. Furthermore, embrace diverse perspectives to understand India’s intricate socio-economic and political landscape objectively.

Furthermore, India under Narendra Modi’s governance, has achieved remarkable progress on its path toward global leadership. Additionally, India thrives with strong GDP, infrastructure projects, and financial inclusion, becoming a leading economy. Its commitment to social welfare, digital revolution, and strategic partnerships further cements its position as a global powerhouse. While challenges persist, India’s pursuit of structural reforms, innovation, and inclusivity promises a lasting impact on the world stage. Generally, as a beacon of hope and progress, India’s journey continues to inspire and shape global affairs.

Also , read thelogicalpie.com/index.php/2023/08/02/why-india-is-giving-priority-to-privatization

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