With economic reforms taking centre-stage and the introduction of GST a landmark achievement, the Indian government has crossed significant milestones. Sahil Sharma says that the Make in India campaign which has catapulted the country into a global manufacturing hub and a number of welfare/governance schemes, are a god augury for socio-economic and political fabric, although challenges remain. Narendra Modi’s charisma and strong leadership has guided these campaigns and how!
As Narendra Modi secures his third term as the Prime Minister of India, it is an opportune moment to reflect on the policies, achievements, and controversies during his previous terms in office. Since his ascent to the national stage in 2014, there have been significant changes in India’s socio-economic and political landscape.
One of the cornerstones of the tenure has been the ambitious economic reforms. The introduction of the Goods and Services Tax (GST) in 2017 stands out as a landmark achievement. By unifying the country under a single tax regime, GST aimed to streamline tax compliance and boost revenue collection.
This move was seen as a monumental step towards creating a cohesive market across the nation, replacing a plethora of state and central taxes with one unified tax system. Despite initial implementation challenges, the GST has facilitated easier trade across state borders and is expected to enhance the efficiency of tax collection over the long term.
Global manufacturing hub
Launched in 2014, the government’s ‘Make in India’ initiative sought to transform India into a global manufacturing hub by encouraging both domestic and international companies to manufacture their products within the country. This ambitious policy was designed to attract foreign investment, foster innovation, and build world-class manufacturing infrastructure. Over the years, the campaign has garnered significant attention and interest, marking India’s emergence as a potential leader in global manufacturing.
The primary objectives of the Make in India initiative were to boost the manufacturing sector and increase its share in India’s GDP from 16 per cent to 25 per cent by 2025; generate employment opportunities for the burgeoning youth population; enhance skill development and improve the skill sets of the workforce to meet the demands of a modern manufacturing economy; attract foreign investment by facilitating foreign direct investment (FDI) in various sectors by easing regulatory barriers; and promote innovation, research, and development in manufacturing technologies.
For this ambitious initiative, 25 key sectors for potential growth and investment were identified and targeted. These include Automobiles and Auto components, Aerospace and Defence, Biotechnology, Chemicals, Construction, Electronic Systems, Food Processing, Information Technology and Business Process Management, Leather, Media and Entertainment, Mining, Oil and Gas, Pharmaceuticals, Ports and Shipping, Railways, Renewable Energy, Space, Textiles and Garments, Tourism and Hospitality, and Wellness.
Most of the objectives of the Make in India initiative were successfully achieved. The initiative has been instrumental in attracting substantial foreign direct investment. Between 2014 and 2019, India received over $286 billion in FDI, a testament to the campaign’s effectiveness in positioning India as a favourable investment destination.
Several international companies have since established manufacturing plants in India. For instance, Apple started assembling iPhones in India, and Samsung opened one of the world’s largest mobile phone manufacturing plants in Noida. Additionally, automobile giants like Kia Motors and Tesla have expressed interest in investing in the Indian market.
As part of the initiative, the Indian government undertook significant reforms to improve the ease of doing business. These included simplifying the regulatory framework, introducing the Insolvency and Bankruptcy Code (IBC), and implementing the Goods and Services Tax (GST). These measures helped India jump 79 positions in the World Bank’s Ease of Doing Business rankings between 2014 and 2019.
The initiative has faced several challenges as well along the way that need to be addressed to fully realise its goals. Despite efforts to streamline processes, India’s regulatory environment can still be complex and cumbersome. Investors often face difficulties navigating through multiple bureaucratic layers, leading to delays and increased costs.
Acquiring land for industrial projects remains a significant challenge due to fragmented land laws and opposition from local communities. Infrastructure in India has grown in a big way, still in certain zones transportation networks, logistics, and power supply need upgrades to support large-scale manufacturing.
Welfare schemes and governance
The Modi government in the previous terms had also prioritised social welfare schemes aimed at improving the quality of life for the underprivileged. The Pradhan Mantri Jan Dhan Yojana (PMJDY) has been particularly noteworthy, achieving financial inclusion by opening millions of bank accounts for the unbanked population. This initiative has facilitated direct benefit transfers, ensuring that subsidies and welfare payments reach the intended beneficiaries, thus reducing corruption and leakages in the system.
The Swachh Bharat Abhiyan (Clean India Mission) was launched in 2014, aimed to eliminate open defecation and improve sanitation across the country. The campaign’s impact has been substantial, with millions of toilets constructed and a significant reduction in open defecation reported. This initiative has contributed to improved public health and hygiene standards, particularly in rural areas, and has fostered a broader socio-cultural shift towards cleanliness and sanitation.
The Prime Minister’s leadership style has been characterised by a strong centralisation of power and a focus on decisive governance. His charismatic persona and effective communication skills have played a crucial role in maintaining his popularity. The BJP’s political strategy, including leveraging social media and fostering a robust grassroots network, have been instrumental in their electoral successes. Modi’s ability to connect with the masses through his oratory skills and use of digital platforms has set a new standard in political campaigning in India.
Controversies and criticism
The abrogation of Article 370 in August 2019, which granted special autonomy to the region of Jammu and Kashmir, marked a significant policy decision. The move was celebrated by many as a step towards integrating the region fully with India, reflecting the government’s commitment to national unity. It aimed to bring administrative and economic reforms to the region, though it also led to heightened security measures and political tensions, which continue to be a topic of debate.
The Modi government faced unsurmountable challenges, including the Covid-19 pandemic, particularly during the second wave in 2021. At the time, the world’s most advanced nations succumbed to the coronavirus-inflicted crisis, but India fared well. There were voices that criticised India’s handling of the Covid-19 pandemic specially the need for robust healthcare infrastructure and resources for better preparedness. On Ground Zero, India was not only protecting its people fiercely but also extending help to other nations in need.
Modi’s previous tenures have seen debates about the balance between governance and democratic principles. Laws such as the Citizenship Amendment Act (CAA) sparked widespread protests and discussions about India’s secular fabric. The CAA, which aims to provide citizenship to persecuted minorities from neighbouring countries, was viewed by some as discriminatory against Muslims.
As Narendra Modi embarks on his third term as Prime Minister, his legacy includes significant achievements and ongoing deliberations. His tenure has brought about transformative changes in India’s economic and social landscape. His second term culminated with the building of the Ram Temple in Ayodhya – a centuries-old dispute that was taken to its logical and legal conclusion.
From ambitious economic reforms like GST and demonetisation to impactful social welfare schemes like PMJDY and Swachh Bharat Abhiyan, Modi’s policies have sought to modernise and uplift the nation. His era has been a period of dynamic change, and its long-term impact on India’s socio-economic and political fabric will continue to strengthen the nation.