Twelve years post-2014, the Indian economy shows little resemblance to the one Modi took over.
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As Narendra Modi surpasses Jawaharlal Nehru to become India's longest-serving Prime Minister, the nation's economic landscape has experienced a remarkable transformation characterised by reduced inflation, extensive infrastructure development, tax reforms, digitalisation, and an enhanced global economic presence. Throughout the last 12 years, India's economic, political, and international stature has seen a substantial evolution. Under Modi's leadership, often referred to as 'Modinomics,' India has advanced from being the 10th to the 4th largest economy in the world, with its GDP doubling to exceed USD 4 trillion. His economic approach, commonly known as 'Modinomics,' emphasises macroeconomic stability, significant investments in infrastructure, and the establishment of digital public infrastructure, while also addressing ongoing challenges such as job creation and economic disparity. India is increasingly recognised as a significant contributor to global economic growth, highlighted by crucial Free Trade Agreements, including the one with the UK, which was finalised after nearly collapsing during discussions in 2013.
Under macroeconomic growth and fiscal policy, during his 12-year tenure, India's GDP has doubled to over USD 4 trillion, successfully navigating global economic changes to sustain one of the fastest growth rates among major economies, peaking at 7.7% in FY 2025-26. The implementation of the Goods and Services Tax (GST) has consolidated the country's indirect taxes into a single system, with average monthly collections exceeding INR 2 lakh crore. Foreign exchange reserves reached USD 682.3 billion in May 2026, indicating a significantly stronger macroeconomic position compared to a decade earlier. The robust reserves, surpassing INR 67 lakh crore, provide crucial import coverage and protect the economy from external shocks. India's share of the global economy has increased from approximately 2.8% in 2014 to 3.7% in 2024.
In the domain of digital public infrastructure and financial inclusion, the government has enhanced financial inclusion by establishing more than 58 crore Jan Dhan bank accounts, effectively minimising leakages by directing subsidies straight to citizens' accounts. The Unified Payments Interface (UPI) has transitioned millions from a cash-dependent society to a digital economy, handling over 22 billion transactions each month.
In terms of manufacturing and enterprise, the Production Linked Incentive (PLI) schemes and extensive manufacturing initiatives have propelled electronics production from INR 2 lakh crore to beyond INR 12 lakh crore. India has now become the third-largest startup ecosystem globally, with the number of recognised startups increasing to over 3.35 lakh, resulting in the creation of approximately 25 lakh jobs. Significant investments have been made in both physical and digital connectivity, which includes the swift expansion of railways, more than 1,200 operational airports, and thousands of kilometres of national highways.
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Controlling inflation, one of the most significant developments has been the reduction in inflation rates. Despite facing challenges such as high crude oil prices, supply chain disruptions, and global uncertainties, inflation has largely remained within the target over the last decade. The central bank currently anticipates an inflation rate of 5.1% for FY27. The decrease in inflation has contributed to safeguarding household purchasing power, lowering borrowing costs, and granting policymakers increased flexibility to foster growth.
Under the framework of 'Modinomics', initiatives like PM Gati Shakti have aimed to enhance coordination among ministries through a unified digital planning platform, while the modernization of railways has progressed through electrification projects, dedicated freight corridors, and the introduction of Vande Bharat trains.
Focusing on welfare and the 'garib kalyan', hundreds of billions of rupees have been securely transferred into the accounts of citizens, eliminating the need for administrative intermediaries. Programs such as the Pradhan Mantri Awas Yojana (PMAY) have approved millions of housing units, while initiatives like the Jal Jeevan Mission have expanded access to tap water for over 14 crore rural households.
Ayushman Bharat has offered free medical coverage to millions of underprivileged families, alleviating long-term financial pressures on the poor.
Agriculture has consistently been a primary focus during the Modi administration. Through the PM-KISAN scheme, over INR 3 lakh crore has been directly deposited into farmers' bank accounts, offering income support and enhancing financial stability in rural regions. The Pradhan Mantri Fasal Bima Yojana has broadened crop insurance coverage, assisting farmers in managing risks associated with weather-related uncertainties. Despite increasing pressure from Washington to liberalise the Indian agricultural market, the Modi government has continued to support and safeguard the sensitive agricultural and dairy sectors from an influx of imports.
Twelve years post-2014, the Indian economy shows little resemblance to the one Modi took over. Although challenges persist, such as job creation and income inequality amid global economic uncertainties, macroeconomic indicators like foreign exchange reserves and inflation have demonstrated resilience. However, overall per capita income growth remains a significant challenge. Furthermore, the rapid growth of national GDP has not resulted in commensurate increases in employment and wealth distribution. The forthcoming challenge lies in implementing second-generation reforms that can sustain growth and elevate India to a USD 10 trillion economy.
Summing up, while surpassing the record set by former Prime Minister Nehru is a notable achievement, Prime Minister Modi is likely to be remembered more for his transformative impact on India's political landscape than for mere statistics.
(Mithilesh Kumar Sinha is a retired professor of Nagaland University, Lumami)