The Impact of Modi’s Economic Policies on India

Introduction

The economic policies implemented by Prime Minister Narendra Modi since he came to power in 2014 have been pivotal in shaping India’s economic landscape. Their relevance is underscored by the continually evolving global economic scenario, particularly in the wake of the COVID-19 pandemic and increasing geopolitical tensions. Modi’s approaches aim not only to stimulate domestic growth but also to enhance India’s position on the international stage.

Main Body

Since taking office, Modi has rolled out several significant economic initiatives, including Make in India, Digital India, and the Goods and Services Tax (GST). Each initiative aims to modernise India’s economy, boost manufacturing, and streamline taxation.

Make in India

This initiative encourages companies to manufacture their products in India, effectively turning the country into a global manufacturing hub. As of 2023, over 1,000 foreign companies have set up or expanded their manufacturing bases within India, resulting in a surge in job creation.

Digital India

The Digital India initiative promotes online infrastructure development, enhancing access to digital services across rural and urban areas. According to the Indian government, around 700 million people now have access to the internet, a considerable increase from previous years. This increase is crucial for leveraging technology in various sectors such as education, healthcare, and financial services.

Goods and Services Tax (GST)

GST has been one of Modi’s flagship reforms that aimed to simplify India’s complex tax structure by consolidating multiple state and central taxes into a single tax. The implementation of GST in 2017 has significantly increased tax compliance, resulting in higher revenue for the government. Recent reports indicate that GST collections have reached record highs, reflecting a recovering economy.

Conclusion

Looking forward, the significance of Modi’s economic policies cannot be underestimated. While challenges such as unemployment and inflation persist, the government’s focus on infrastructure development, sustainability, and digital transformation presents a roadmap for future growth. Modi’s administration appears committed to fostering a business-friendly environment that could position India as a key player in the global economy. As these policies continue to unfold, their long-term implications may significantly influence both domestic and international perceptions of India’s economic potential.