Narendra Modi has ensured India continues its rapid progress among the world’s top economies, leading to improvements in the lives of many Indians.
Promises and Economic Growth
During the 2014 election, Narendra Modi confidently proclaimed, “acchhe din aane waale hain” (good times are coming), as he surged towards victory.
As Narendra Modi prepares for another term as prime minister in the upcoming elections starting on April 19.
However, the economic progress has been unevenly distributed. The majority of India’s growth is driven by those at the top of the income pyramid, including a select group of large, tightly controlled businesses.
Welfare Programs and Rural Development
Approximately 90% of India’s vast population of 1.4 billion people are estimated to live on less than $3,500 a year. Nevertheless, in the poorest rural areas, life has improved due to expanded welfare programs under Narendra Modi leadership. Many tangible benefits have been provided, such as free grain, toilets, gas cylinders, and housing materials.
Furthermore, commercial advancements have significantly changed village life, with the introduction of LED lights, affordable smartphones, and almost free mobile data, altering how people spend their leisure time.
Welfare programs have also become more efficient and responsive under his leadership.
Stock Market Surge and Economic Expansion
India’s stock market has seen a threefold increase in value since he first assumed office. Additionally, India’s economy has nearly doubled in size.
This surge in stock values can be attributed to the significant rise in the number of Indians willing to invest and take on investment risks, with the percentage increasing from barely 2 percent to nearly 5 percent of the population.
Foreign Investor Confidence
International surveys indicate that Indian consumers are the most optimistic globally.
Foreign investors are expressing confidence in the Narendra Modi-led economy.
Major banks like Morgan Stanley and JPMorgan Chase are swiftly increasing India’s representation in their global stock and bond indexes. Chris Wood, a highly respected market strategist in Asia, cautioned that if Mr. Modi were not re-elected, Indian markets could plummet by 25 percent or more.
India’s economy is fastest growing in major Economy
India’s economic success is undeniable, it also reflects a hallmark of Narendra Modi’s leadership: his ability to wield power effectively, prioritizing presentation and showmanship.
India’s rise in the global economy seems inevitable. It has surpassed Britain to become the world’s fifth-largest economy and is expected to surpass Japan and Germany to claim the third spot in the next few years.
While America was experiencing a “recession” feeling down despite positive economic indicators, India has been experiencing the opposite. Despite mixed signals, the overall sentiment is overwhelmingly positive.
Although official figures project a growth rate of approx 8 percent for the current fiscal year, most financial experts in Mumbai estimate it to be between 7 to 7.5 percent.
Even the most conservative estimate is around 4.5 percent, surpassing the growth rates of the United States and possibly China.
Digital revolution in India
India, particularly in banking and business dealings, has experienced a significant digital revolution.
This initiative was initiated during the previous administration under Dr Manmohan Singh, but Narendra Modi has accelerated its implementation.
The introduction of the “India Stack,” a collection of software platforms built upon Aadhaar, a biometric identification system, has enabled Indians to conduct peer-to-peer transactions faster and at lower costs compared to Americans.
Change in tax systems
India’s tax systems have been revamped. India has shifted more of its economy into the formal sector, such as by introducing a Goods and Services Tax similar to Europe’s value-added tax.
This move has allowed the government to collect more revenue from a wider range of individuals and businesses. Consequently, more funds have become available for public spending, and corporate tax cuts have stimulated private investment.
Foreign companies are moving manufacturing operations into India
The Indian government plays a pivotal role in attracting foreign companies to move their manufacturing operations into the country.
Through various initiatives and policies, such as Make in India, Skill India, and incentives like tax breaks and subsidies, the government aims to create a conducive environment for foreign investment.
Additionally, regulatory reforms aimed at easing business processes and improving infrastructure further bolster India’s appeal as a manufacturing hub.
By actively engaging with foreign investors and addressing their concerns, the government facilitates smoother transitions and encourages long-term commitments, ultimately contributing to economic growth and job creation in India.
Conclusion
Narendra Modi’s leadership over the past decade has propelled India’s economy forward.
While his promises of “good times” have materialized for many, especially in rural areas through welfare programs and digital initiatives.
India towards becoming one of the world’s top economies, with increased investor confidence and significant strides in areas like digitalization and tax reform.