In 2004, the UPA government inherited a strong economy from the previous NDA government but struggled to sustain growth over its 10-year tenure. Persistent high fiscal deficits worsened challenges. India became more vulnerable to external factors due to heavy reliance on external commercial borrowings (ECB), growing annually at an unprecedented rate of 21.1 per cent. Under Prime Minister Narendra Modi’s leadership from 2014 to 2023, the growth rate of ECB dropped to 4.5 per cent annually.
Since 2014, the Modi government has implemented major reforms, including GST, the JAM Trinity (Jan Dhan Yojana, Aadhaar, and Mobile platforms), and DBT mechanisms, which have streamlined benefit distribution, curbed corruption, and saved funds. This article critically assesses the impact of these reforms.
Goods and Services Tax (GST)
The introduction of GST marked a milestone. It streamlined indirect taxes, fostering a more efficient tax system and promoting a favourable environment for business. Despite criticism from Congress leader Rahul Gandhi, GST collections experienced a robust 12 per cent year-on-year growth. The GST council exemplifies the spirit of Cooperative Federalism under the Modi government, facilitating continuous dialogue between states and the Centre. Their collaborative efforts aim to achieve mutually beneficial solutions. The implementation of GST has brought about manifold ramifications:
Simplification: It replaced multiple taxes with one, reducing paperwork
Broadened Tax Base: It brought unregistered businesses into the formal system, boosting tax revenue Interstate Commerce: It eliminated entry taxes and octroi, promoting interstate trade
Challenges and Reforms: Despite benefits, it faced compliance issues. Reforms include simplifying compliance.
JAM Trinity and Direct Benefit Transfer (DBT)
The integration of the JAM Trinity with DBT has revolutionised welfare benefit and subsidy distribution. Despite skepticism from Congress leader P Chidambaram, India, under PM Modi, has become a global leader in digital transactions, comprising 46 per cent of all such transactions worldwide.
Financial Inclusion: JAM Trinity grants millions access to banking facilities, fostering participation in the nation’s economic growth
DBT: The integration of JAM Trinity with DBT ensures funds reach beneficiaries directly Impact on Poverty Alleviation: DBT-streamlined subsidy delivery uplifts marginalised communities
Social Campaigns
The Modi government has made significant strides in uplifting women. Initiatives like Beti Bachao Beti Padhao address gender imbalance, while schemes like Pradhan Mantri Matru Vandana Yojana provide support to pregnant women. Stand-Up India aids women entrepreneurs, and legislative reforms like the Triple Talaq Bill bolster women’s rights.
Swachh Bharat Abhiyan, launched in 2014, aimed to end open defecation and promote cleanliness nationwide.
Beti Bachao Beti Padhao united the nation in addressing gender disparities, especially in girls’ education and rights, resulting in improved sex ratios.
Digital India prioritised digital literacy and connectivity, democratising access to government services.
Impact and Way Forward
The Modi government’s transformative measures reflect a nationalist ethos. Initiatives like GST, JAM Trinity and DBT strengthen economic foundations. By promoting financial inclusion and poverty alleviation, these reforms empower citizens. Societal campaigns promote behavioural change and collective responsibility. Overall, the reforms embody a nationalist governance approach, focused on economic resilience, social cohesion and collective progress.
The Modi government’s initiatives have laid the foundation for a more prosperous and equitable India, boosting economic growth and societal wellbeing. Additionally, the government has launched proactive measures to promote Indian culture domestically and globally, fostering pride in cultural heritage. The recent pran pratishtha of the Ram Mandir exemplifies this cultural resurgence, symbolising a collective aspiration for a harmonious society reminiscent of Ram Rajya. These cultural endeavours inspire hope and unity for India’s future.
Sumeet Bhasin
Director, Public Policy Research CentreI
Posts on X (formerly known as Twitter): @sumeetbhasin