Over the past few years, India has witnessed great economic and political developments, led by Prime Minister Narendra Modi’s government. Modi has been widely credited for India’s improvements in both economic and foreign policy, propelling the nation forward in a relatively short period of time. In this article, we will look in detail at the economic growth and foreign policy that Modi has championed since his first election in 2014, how these policies have impacted India and their effects on the rest of the world.
Narendra Modi’s Rise to Power
Narendra Modi was elected prime minister of India in 2014, after leading the Bharatiya Janata Party (BJP) to an astonishing victory in the general elections. After winning the election, he vowed to work towards an improved India, outlining his plans for economic growth and foreign policy initiatives. His ideas sparked a lot of enthusiasm amongst the public and, ever since then, Modi’s reforms have been largely successful.
India’s Economic Growth under Modi
Investment and Employment Initiatives
Since Modi’s election, the nation’s Gross Domestic Product (GDP) has grown by an impressive 7.3% annually, making India the world’s fastest growing major economy. Amongst the plans aimed at pushing India’s economy forward are initiatives to promote and attract foreign investment. The Make in India campaign, for instance, encourages and incentivises businesses to manufacture their products in India, creating employment opportunities and boosting local industries.
Tax Reforms
Modi’s reforms to the country’s tax system have had a positive effect on India’s economic growth and development. He has implemented the Goods and Services Tax (GST) as part of his plan to create a unified, tax-efficient economy. The GST replaced the previous, complex tax structure and greatly simplified the tax system, creating a more efficient and transparent economy.
Infrastructure
Infrastructure development has been a key initiative for the Modi government since coming to power. Through the ambitious Sagar Mala Project, the government has identified 39 coastal economic zones (CEZs) and developed 24 ports, in a bid to encourage investment, create jobs and facilitate efficient transportation.
Financial reforms
In an attempt to promote and facilitate more financial inclusion, Modi’s government has also introduced various financial reforms. The Jan Dhan Yojana (JdY) sees the government partnering with banks in order to provide banking facilities to millions of people. This includes zero balance accounts and the ability to access financial services such as debit cards, loans and insurance.
Foreign Policy
Since becoming Prime Minister, Narendra Modi has focused heavily on improving India’s foreign policy, using the country’s growing economic strength to achieve his goals. Here are some of the key initiatives he has implemented:
• Strengthening India’s Relations with the USA
Modi and US President Donald Trump have been developing the US-India relationship since Trump took office in 2017. The US-India Strategic Partnership Forum (USISPF) has been launched to promote trade, investments and job creation, whilst the Logistics Exchange Memorandum of Agreement (LEMOA) has been designed to enhance military cooperation.
• Improved Relations with Israel
India and Israel are strengthening their ties on a cultural, economic and defence basis, with Modi visiting Tel Aviv in 2017 to meet Israeli President Reuven Rivlin. This relationship further boosts India’s diplomatic status, whilst also leading to increased trade opportunities and technology transfer.
• Increased Exchange with China
Under Modi’s leadership, India and China have begun to work closer together, improving their mutual understanding and sharing of knowledge. Modi participated in his first multilateral exchange event with President Xi Jinping in 2014 and they continue to cooperate in areas such as economic development and military technology.
• Growing Connection to Africa
Modi has sought to strengthen India’s ties to Africa, laying out a series of plans designed to both develop India’s own economy and assist African nations. This includes training African political leaders, providing investment opportunities and providing access to education and healthcare services.
Since becoming Prime Minister in 2014, Narendra Modi has overseen a period of profound economic growth and development in India. His policies have achieved numerous successes, notably the introduction of GST, financial reforms, improved foreign relations and infrastructure developments. These successes together with India’s growing international recognition has made Modi a much-admired political figure, both within India and abroad.