Over the course of almost a decade, Modi has made choice after decision that has altered India’s economy in distinct ways. With India so severely split between proponents and opponents of Modinomics, the success of Modi’s policies in improving the economy may be up for discussion. No one, however, disputes that Modi pursued his reforms with an intensity never seen before.
Morgan Stanley’s most recent study praised Prime Minister Narendra Modi’s administration.
The report claims that in only a decade, India has risen in the global order, which has had far-reaching, beneficial effects on the macro and market prospects.
Improvements in national roadways, internet subscription rates, renewable energy sources, and electrified train routes were highlighted in the study.
Understanding the policies
Some of his policies that altered India’s economy are listed below:
The Goods and Service Tax
Modi was able to successfully implement the GST, which was the reform to end all reforms. Since its inception, both the number of taxpayers and the amount of money collected have increased significantly. April’s GST receipts were a record $1.87 trillion, a 12.4 percent increase from the same month a year ago. Most major states have recorded an increase in GST of 20% or more compared to the same time last year, pointing to widespread expansion across industries and jurisdictions. The number of e-way bills created in March 2023 was 90,000,000, an 11% increase over February’s tally of 81,000,000.
Transfer of Benefits Directly
The Direct Benefits Transfer (DBT) program was another innovative initiative used by the Modi administration to bring India’s underprivileged people into the formal financial system. Former Prime Minister Rajiv Gandhi said in the 1980s that barely 15 cents of every rupee provided by the Central government really reached the poor. The DBT has made it possible. The Modi administration was able to successfully implement direct subsidy transfers to citizens’ bank accounts by using the JAM (Jan Dhan + Aadhar + Mobile) trinity.
Stacking up India
Modi is unlike any other Indian prime leader in that he uses technology extensively in his social welfare initiatives. The Unified Payment Interface (UPI) implemented by his administration has greatly benefited the rural economies of India. India Stack is a collection of open application programming interfaces (APIs) and digital public goods (such as Aadhaar, UPI, Digilocker, and the more recent CoWin Vaccination Platform) with the goal of unlocking the economic potential of identity, data, and payments at population scale in India.
India Stack’s primary goal is to reduce transaction costs so that the country’s 1.3 billion residents have access to publicly and privately provided services that are both socially and economically significant. It promotes private enterprise development supported by public utilities. India Stack developed a collection of publicly available protocols or standards, which are now being adopted by the relevant organisations. The UPI has made it easier for private enterprises to adopt digital payment strategies.
Made in India
India’s economy has historically been based on providing services, but Modi’s Make in India initiative aims to change that. The services sector has been more important to India’s economy than manufacturing. Recently, the Indian government announced a Performance-Linked Incentives plan to encourage investment in over a dozen different areas of manufacturing, most notably electronics and semiconductor chips, as part of the Make in India initiative.
With the help of the scheme, India is encouraged to increase production at home in high-priority development areas where the country has a competitive edge. Improving the competitiveness of Indian companies and increasing their export potential are all parts of this strategy. Benefits for the whole MSME ecosystem are anticipated as a result of the Made in India Scheme’s increased output and employment.
Many people questioned India’s potential to become a manufacturing giant when Modi first introduced the Make in India plan in 2014. It needed a large amount of money and a skilled workforce. Apple’s decision to open a manufacturing facility in India nine years after the launch of the Make in India initiative is a powerful signal to Western firms that they can successfully diversify their production away from China. Make in India was undoubtedly introduced at the right moment. The global geopolitical landscape has shifted in India’s favor in the eight years since its introduction.