Despite being mocked as a "chaiwallah," a Hindi chauvinist, and a photo-attentive leader, Indian Prime Minister Narendra Modi has made tremendous changes in India’s economy. Modi built a formidable reputation as a business-friendly leader while governing his home state of Gujarat, and he has been able to make the world tout India’s fifth-largest economy during his Prime Minister leadership. His remarkable work on digitalizing the economy, improving tax collection, and advancing technology are praiseworthy despite discrepancies in GDP growth.
His dedication to making India a production house and making the world's best economy has made some progress in the past, but his promise seems to falter. The World's second-largest populated country with many possibilities is now struggling to find the grip. Foreign direct investment (FDI) is plunging, private sector investment is falling due to low consumer demand and financial constraints, and unemployment is endemic. However, ten years ago he came into power promising better jobs and lives for millions of Indians.
Economic Development
India's economy has navigated a challenging path despite Modi's efforts to make it the world's third-largest. The Bhartiya Janta Party (BJP) government initiated demonetization to eradicate corruption and illegal black money, but this did not stimulate economic growth. Instead, digitalization has alleviated some of the pain caused by demonetization.
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From 2014 to 2023, India moved from being the ninth-largest economy to the fifth-largest, with a 55% increase in per capita GDP. India experienced the largest GDP growth among major economies, alongside the US and China. This achievement was possible due to crucial infrastructure developments undertaken by the BJP over ten years. The Ministry of Road Transport and Highway reported that India had added nearly 35,000 miles to the national highway, a 60% increase in overall length.
Modi's vision of "Make in India" has shown some progress in beginning leadership terms with foreign investment of $32.64 billion in 2022. But of not having strong progress, the reputation has increased. According to the Reserve Bank of India’s February 2024 bulleting net FDI went down 55% to $9.69 in FY 2024. For example, in 2023, Apple's manufacturer Foxconn shifted some of its manufacturing units to India. However, insiders’ commented that this shift from China to India was more due to global diplomatic changes rather than Modi's policies.
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