Over the past decade, under the leadership of Prime Minister Narendra Modi, India has experienced notable economic developments. When Modi’s government took office in 2014, India’s economy was valued at just below $2 trillion. As of 2025, it has expanded to approximately $3.8 trillion, marking a significant growth trajectory.
GDP Growth and Economic Expansion
In the initial years of Modi’s tenure, India’s GDP growth accelerated, reaching 7.4% in 2014, making it the fastest-growing large economy globally.
However, this momentum faced challenges, with growth slowing to 6.1% in the 2018-19 fiscal year.
The decline has been attributed to factors such as the 2016 demonetisation and the implementation of the Goods and Services Tax (GST).
Infrastructure Development
Infrastructure has been a cornerstone of Modi’s economic strategy. The government has invested heavily in building roads, airports, ports, and metro systems, with annual expenditures exceeding $100 billion.
This focus aims to modernize India’s infrastructure, fostering long-term economic growth. However, rapid development has occasionally led to quality concerns, as seen in incidents like the collapse of structures at New Delhi airport and other locations.
Financial Inclusion
The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in August 2014, aimed to enhance financial inclusion by opening bank accounts for the unbanked population. By August 2023, over 500 million accounts had been opened, with total deposits reaching approximately ₹20.35 lakh crore.
This initiative has facilitated direct benefit transfers and encouraged a shift from informal savings to formal banking channels.
Manufacturing and ‘Make in India’
The ‘Make in India’ initiative, introduced in September 2014, sought to transform India into a global manufacturing hub. The program aimed to increase the manufacturing sector’s growth rate to 12-14% per annum, create 100 million additional manufacturing jobs by 2022, and raise the sector’s contribution to GDP to 25% by 2025.
While there have been successes, such as increased mobile phone production and exports, the broader impact on manufacturing growth and employment has faced challenges.
Employment and Income
Despite economic growth, job creation has been a persistent concern. An internal government report indicated that in 2017, unemployment reached its highest level in 45 years.
Additionally, while small businesses added approximately 11 million jobs in the year ending September 2024, wage growth has been restrained by high inflation, affecting overall consumption patterns.
Foreign Direct Investment (FDI) and Economic Liberalization
The Modi administration liberalized India’s FDI policies, allowing increased foreign investment in sectors like defense and railways.
These reforms aimed to attract global investors and stimulate economic activity. However, the benefits of these policies have been mixed, with some sectors experiencing growth while others have faced challenges.
Conclusion
Over the past decade, the Modi government’s economic policies have led to significant achievements, including substantial GDP growth, extensive infrastructure development, and increased financial inclusion. However, challenges remain in areas such as employment generation, income inequality, and sustainable manufacturing growth. Addressing these issues will be crucial for India’s continued economic development in the coming years.
