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{{Use dmy dates|date=September 2024}}
{{Use Indian English|date=September 2024}}
{{Narendra Modi series}}
'''The economic policies of the [[Narendra Modi]] government''', also known as '''Modinomics''', focused on privatization and liberalization of the economy, based on a [[neoliberal]] framework.<ref name="Ruparelia">{{cite journal|last1=Ruparelia |first1=Sanjay |date=12 January 2016 |title='Minimum Government, Maximum Governance': The Restructuring of Power in Modi's India |journal=Journal of South Asian Studies |volume=38 |issue=4 |pages=755–775 |doi=10.1080/00856401.2015.1089974 |issn=0085-6401 |doi-access=free |s2cid=155182560}}</ref><ref name="Shah & Lerche">{{cite journal|last1=Shah|first1=Alpa|last2=Lerche|first2=Jens|url=https://www.epw.in/journal/2015/41/book-reviews/indias-democracy-illusion-inclusion.html|title=India's Democracy: Illusion of Inclusion|journal=[[Economic & Political Weekly]]|date=10 October 2015|volume=50|issue=41|pages=33–36|access-date=23 October 2021|archive-date=28 March 2023|archive-url=https://web.archive.org/web/20230328113150/https://www.epw.in/journal/2015/41/book-reviews/indias-democracy-illusion-inclusion.html|url-status=live}}</ref> Modi liberalized India's [[foreign direct investment]] policies, to allow for more foreign investment in several industries, including in defense and the railways.<ref>{{cite web|first1=Sanjeev|last1=Miglani|first2=Krishna N.|last2=Das|url=http://in.reuters.com/article/india-reforms-idINKCN0SZ18J20151110|title=India frees up foreign investment in 15 major sectors|agency=[[Reuters]] India|date=10 November 2015|access-date=10 October 2017|archive-date=11 June 2016|archive-url=https://web.archive.org/web/20160611005401/http://in.reuters.com/article/india-reforms-idINKCN0SZ18J20151110|url-status=dead}}</ref><ref>{{cite news | url=https://economictimes.indiatimes.com/news/economy/policy/cabinet-approves-raising-fdi-cap-in-defence-to-49-per-cent-opens-up-railways/articleshow/39767641.cms | work=[[The Economic Times]] | title=Cabinet approves raising FDI cap in defence to 49 per cent, opens up railways | date=7 August 2014 | access-date=17 October 2021 | archive-date=17 October 2021 | archive-url=https://web.archive.org/web/20211017184753/https://economictimes.indiatimes.com/news/economy/policy/cabinet-approves-raising-fdi-cap-in-defence-to-49-per-cent-opens-up-railways/articleshow/39767641.cms | url-status=live }}</ref><ref>{{cite news | url=https://www.wsj.com/articles/modi-presses-reform-for-india-but-is-it-enough-1416466742 | work=[[The Wall Street Journal]] | first=Raymond | last=Zhong | title=Modi Presses Reform for India—But Is it Enough? | date=20 November 2014 | access-date=17 October 2021 | archive-date=29 March 2016 | archive-url=https://web.archive.org/web/20160329123224/http://www.wsj.com/articles/modi-presses-reform-for-india-but-is-it-enough-1416466742 | url-status=live }}</ref> Other proposed reforms included making the forming of unions more difficult for workers, and making recruitment and dismissal easier for employers. In 2021–22, the [[Foreign direct investment in India|foreign direct investment]] (FDI) in India was $82 billion. India's gross domestic savings rate stood at 29.3% of GDP in 2022.<ref>{{cite web|url=https://www.rbi.org.in/scripts/PublicationsView.aspx?id=20623|title=Reserve Bank of India – Publications|work=Reserve Bank of India|access-date=8 July 2022|archive-date=8 July 2022|archive-url=https://web.archive.org/web/20220708104448/https://www.rbi.org.in/scripts/PublicationsView.aspx?id=20623|url-status=live}}</ref>

==Economy==
In his first budget, [[Minister of Finance (India)|Finance Minister]] [[Arun Jaitley]] promised to gradually reduce the budgetary deficit from 4.1% to 3% over two years and to divest from shares in public banks.<ref>{{Cite news |title=Budget 2016: Full text of Finance Minister Arun Jaitley's speech |work=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/policy/budget-2016-full-text-of-finance-minister-arun-jaitleys-speech/articleshow/51194097.cms |access-date=28 February 2022 |archive-date=28 February 2022 |archive-url=https://web.archive.org/web/20220228104518/https://economictimes.indiatimes.com/news/economy/policy/budget-2016-full-text-of-finance-minister-arun-jaitleys-speech/articleshow/51194097.cms |url-status=live }}</ref>

Over Modi's first year in office, the Indian GDP grew at a rate of 7.5%.<ref>{{Cite web |title=Overview |url=https://www.worldbank.org/en/country/india/overview |access-date=28 February 2022 |website=World Bank|archive-date=18 November 2021 |archive-url=https://web.archive.org/web/20211118154214/https://www.worldbank.org/en/country/india/overview |url-status=live }}</ref> However, the first eight years of Modi's premiership, India's GDP grew at an average rate of 5.5% per cent compared to the rate of 7.03 per cent under the previous government.<ref>{{Cite web |last=Tiwari |first=Amitabh |date=30 May 2022 |title=PM Narendra Modi’s 8 Years: How He Has Performed Compared to Manmohan Singh |url=https://www.thequint.com/opinion/pm-narendra-modis-8-years-how-he-has-performed-compared-to-manmohan-singh |website=[[The Quint]]}}</ref> In recent years, independent economists and financial institutions have accused the government of manipulating various economic data, especially [[Economic growth|GDP growth rate]].<ref>{{cite news |last1=Kumar |first1=Manoj |date=9 May 2019 |title=India's incredulous data: Economists create own benchmarks |url=https://www.reuters.com/article/us-india-economy-data-insight/indias-incredulous-data-economists-create-own-benchmarks-idUSKCN1SF0L6 |url-status=live |archive-url=https://web.archive.org/web/20190509085922/https://www.reuters.com/article/us-india-economy-data-insight/indias-incredulous-data-economists-create-own-benchmarks-idUSKCN1SF0L6 |archive-date=9 May 2019 |access-date=9 May 2019 |work=[[Reuters]]}}</ref><ref>{{cite news |last1=Sharma |first1=Mihir S. |date=13 June 2019 |title=GDP data under cloud: Govt should know that this is a crisis of credibility |url=https://www.business-standard.com/article/economy-policy/gdp-data-under-cloud-govt-should-know-that-this-is-a-crisis-of-credibility-119061300134_1.html |url-status=live |archive-url=https://web.archive.org/web/20190613040500/https://www.business-standard.com/article/economy-policy/gdp-data-under-cloud-govt-should-know-that-this-is-a-crisis-of-credibility-119061300134_1.html |archive-date=13 June 2019 |access-date=13 June 2019 |work=[[Business Standard]]}}</ref><ref>{{Cite web |title=What Is Wrong With India's GDP Numbers? |url=https://thediplomat.com/2019/07/what-is-wrong-with-indias-gdp-numbers/ |website=thediplomat.com}}</ref>

In July 2014, Modi refused to sign a trade agreement that would permit the [[World Trade Organization]] to implement a deal agreed in Bali, citing that agreement will lead to "lack of protection to Indian farmers and the needs of food security" and "Lack of bargaining power".<ref>{{Cite news |title=WTO deal failure: Valid reasons why PM Narendra Modi's government refused to yield |work=The Economic Times |url=https://economictimes.indiatimes.com/news/economy/foreign-trade/wto-deal-failure-valid-reasons-why-pm-narendra-modis-government-refused-to-yield/articleshow/39471767.cms |access-date=28 February 2022 |archive-date=28 February 2022 |archive-url=https://web.archive.org/web/20220228112924/https://economictimes.indiatimes.com/news/economy/foreign-trade/wto-deal-failure-valid-reasons-why-pm-narendra-modis-government-refused-to-yield/articleshow/39471767.cms |url-status=live }}</ref> The addition to Indian airports grew by 23 percent in 2016 while the airfares dropped by over 25 percent.<ref>{{Cite news |last=Jha |first=Somesh |date=17 January 2017 |title=Domestic air passenger traffic grew 23% in 2016|work=The Hindu |url=https://www.thehindu.com/business/Industry/Domestic-air-passenger-traffic-grew-23-in-2016/article17050073.ece |access-date=28 February 2022 |issn=0971-751X |archive-date=28 March 2023 |archive-url=https://web.archive.org/web/20230328113306/https://www.thehindu.com/business/Industry/Domestic-air-passenger-traffic-grew-23-in-2016/article17050073.ece |url-status=live }}</ref>

The level of income inequality increased drastically,<ref name="CNBC Nov 2018">{{cite news |last1=V. |first1=Harini |date=14 November 2018 |title=India's economy is booming. Now comes the hard part |publisher=[[CNBC]] |url=https://www.cnbc.com/2018/11/15/india-economy-modi-faces-inequality-black-money-and-taxes.html |access-date=6 February 2019 |archive-date=21 November 2018 |archive-url=https://web.archive.org/web/20181121065518/https://www.cnbc.com/2018/11/15/india-economy-modi-faces-inequality-black-money-and-taxes.html |url-status=live}}</ref> while an internal government report said that in 2017, unemployment had increased to its highest level in 45 years.<ref>{{Cite news |date=31 May 2019 |title=Unemployment rate at 45-year high, confirms Labour Ministry data|work=The Hindu |url=https://www.thehindu.com/business/Economy/unemployment-rate-at-45-year-high-confirms-labour-ministry-data/article62001095.ece |access-date=28 February 2022 |issn=0971-751X |archive-date=23 February 2022 |archive-url=https://web.archive.org/web/20220223030328/https://www.thehindu.com/business/Economy/unemployment-rate-at-45-year-high-confirms-labour-ministry-data/article62001095.ece |url-status=live }}</ref>

The loss of jobs was attributed to the [[2016 Indian banknote demonetisation|2016 demonetisation]], and to the effects of the [[Goods and Services Tax (India)|Goods and Service Tax]].<ref name="NYT Jan 2019">{{cite news |last1=Gettleman |first1=Jeffrey |last2=Kumar |first2=Hari |date=31 January 2019 |title=India's Leader Is Accused of Hiding Unemployment Data Before Vote |work=[[The New York Times]] |url=https://www.nytimes.com/2019/01/31/world/asia/india-unemployment-rate.html |access-date=7 February 2019 |archive-date=31 January 2019 |archive-url=https://web.archive.org/web/20190131203108/https://www.nytimes.com/2019/01/31/world/asia/india-unemployment-rate.html |url-status=live }}</ref><ref name="Reuters Jan 2019">{{cite news |last1=Kumar |first1=Manoj |last2=Ghoshal |first2=Devjyot |date=31 January 2019 |title=Indian jobless rate at multi-decade high, report says, in blow to Modi |work=[[Reuters]] |url=https://in.reuters.com/article/us-india-economy-jobs/indian-jobless-rate-at-multi-decade-high-report-says-in-blow-to-modi-idINKCN1PP0FX |access-date=7 February 2019 |archive-date=9 February 2019 |archive-url=https://web.archive.org/web/20190209003057/https://in.reuters.com/article/us-india-economy-jobs/indian-jobless-rate-at-multi-decade-high-report-says-in-blow-to-modi-idINKCN1PP0FX |url-status=dead }}</ref> The last year of Modi's first term didn't see much economic development and focused on the policies of defence and on the basic formula of [[Hindutva]].

His government focused on pension facilities for old-age group people and depressed sections of society.<ref>{{Cite news |last=Sengupta |first=Hindol |date=October 2019 |title=The economic mind of Narendra Modi|website=[[Observer Research Foundation]] |url=https://www.orfonline.org/research/economic-mind-narendra-modi-56004/ |access-date=14 January 2021 |archive-date=15 January 2021 |archive-url=https://web.archive.org/web/20210115100049/https://www.orfonline.org/research/economic-mind-narendra-modi-56004/ |url-status=live }}</ref> The economic growth rate in 2018-19 was recorded to be 6.1%, which was lower than the average rate of the first four years of premiership.<ref>{{Cite news |date=1 February 2020 |title=GDP growth rate for 2018-19 revised downwards to 6.1 pc |work=[[The Economic Times]] |url=https://economictimes.indiatimes.com/news/economy/policy/gdp-growth-rate-for-2018-19-revised-downwards-to-6-1-pc/articleshow/73808214.cms |access-date=14 January 2021 |archive-date=26 January 2023 |archive-url=https://web.archive.org/web/20230126002208/https://economictimes.indiatimes.com/news/economy/policy/gdp-growth-rate-for-2018-19-revised-downwards-to-6-1-pc/articleshow/73808214.cms |url-status=live }}</ref>

The fall in the growth rate was again attributed to the 2016 demonetisation and to the effects of the [[Goods and Services Tax (India)|GST]]<ref>{{Cite web |last=Mishra |first=Asit Ranjan |date=10 January 2019 |title=What India GDP growth rate forecast for 2018-19 means |url=https://www.livemint.com/Politics/zxNzYKQfLHUCB2yR3vKE8J/What-India-GDP-growth-rate-forecast-for-2018-19-means.html |url-status=dead |archive-url=https://web.archive.org/web/20210116102219/https://www.livemint.com/Politics/zxNzYKQfLHUCB2yR3vKE8J/What-India-GDP-growth-rate-forecast-for-2018-19-means.html |archive-date=16 January 2021 |access-date=14 January 2021 |website=[[Mint (newspaper)|Live Mint]]}}</ref> on the economy. In 2025, Modi's government announced reforms to the country's [[Goods and Services Tax (India)|goods and services tax]] (GST).<ref>https://www.economist.com/asia/2026/01/21/the-remarkable-recovery-of-narendra-modi</ref>

===Make in India===
{{Main|Make In India}}
[[File:Narendra Modi launches Make in India.jpg|thumb|right|284x284px|Indian Government at the launch of the ''[[Make in India]]'' program]]
In September 2014, Modi introduced the [[Make in India]] initiative to encourage foreign companies to manufacture products in India, with the goal of turning India into a global manufacturing hub.<ref>{{cite web |last=Choudhury |first=Gaurav |title=Look East, Link West, says PM Modi at Make in India launch |url=https://www.hindustantimes.com/business/look-east-link-west-says-pm-modi-at-make-in-india-launch/story-mGj6f6mlUmos0BAi27Rl1O.html |url-status=live |archive-url=https://web.archive.org/web/20150927051617/https://www.hindustantimes.com/business/look-east-link-west-says-pm-modi-at-make-in-india-launch/story-mGj6f6mlUmos0BAi27Rl1O.html |archive-date=27 September 2015 |work=[[Hindustan Times]]|date=25 September 2014 }}</ref> Supporters of economic liberalisation supported the initiative, while critics argued it would allow foreign corporations to capture a greater share of the Indian market. "Make in India" had three stated objectives:
* to increase the manufacturing sector's growth rate to 12-14% per annum
* to create 100 million additional manufacturing jobs in the economy by 2022
* to ensure that the manufacturing sector's contribution to GDP is increased to 25% by 2022 (later revised to 2025).

Make in India has been unsuccessful at achieving its stated targets. Under this programme, the share of manufacturing in GDP was projected to reach 25% by 2022. However, the GDP share of manufacturing has actually fallen from 16.7% in 2013–2014 to 15.9% in 2023–2024.<ref name="v120">{{cite web | last=Raghavan | first=TCA Sharad | title=10 yrs of 'Make in India' & the manufacturing sector is back to where it was in 2013-14 | website=ThePrint | date=2024-09-25 | url=https://theprint.in/economy/10-yrs-of-make-in-india-the-manufacturing-sector-is-back-to-where-it-was-in-2013-14/2283732/ | access-date=2024-10-01}}</ref><ref name="f310">{{cite web | last=Mondal | first=Dipak | title=Make in India fails to lift manufacturing share in GDP in 10 yrs | website=The New Indian Express | date=2024-09-26|url=https://www.newindianexpress.com/business/2024/Sep/26/make-in-india-fails-to-lift-manufacturing-share-in-gdp-in-10-yrs | access-date=2024-09-30}}</ref><ref name="d223">{{cite web | last=Shastry | first=Vasuki | title=As Modi makes ambitious pitch in the US, Make in India is qualified failure 10 years on | website=Scroll.in | date=2024-09-24 | url=https://scroll.in/article/1073404/ten-years-on-make-in-india-is-a-qualified-failure | access-date=2024-09-30}}</ref><ref name="g226">{{cite web | last=Babu | first=M. Suresh | title=Why ‘Make in India’ has failed | website=The Hindu | date=2020-01-19 | url=https://www.thehindu.com/opinion/op-ed/why-make-in-india-has-failed/article30601269.ece | access-date=2024-09-30}}</ref>

==Labour==
Modi's labour reforms received support from institutions such as the [[World Bank]] but faced opposition from scholars, [[Socialism in India|socialist]] and [[Communism in India|communist]] parties, and [[Labor rights|worker rights groups]] within the country. The labour laws also drew strong resistance from [[Trade unions in India|unions]]: on 2 September 2015, eleven of the country's largest unions went on strike, including one affiliated with the BJP. The strike was estimated to have cost the economy $3.7 billion.<ref>{{Cite web |date=3 September 2015 |title=Millions strike in India to protest against Modi's labor reforms |url=https://www.cnbc.com/2015/09/03/millions-strike-in-india-to-protest-against-modis-planned-labor-reforms.html |access-date=3 November 2023 |website=CNBC}}</ref><ref>{{Cite web |title=Millions strike in India over government labour reforms |url=https://www.aljazeera.com/news/2015/9/2/millions-strike-in-india-over-government-labour-reforms |access-date=3 November 2023 |publisher=Al Jazeera}}</ref>

The [[Bharatiya Mazdoor Sangh]], a constituent of the [[Sangh Parivar]], stated that the reforms would hurt labourers by making it easier for corporations to exploit them.<ref>{{Cite news |last=Mohan |first=Archis |date=12 May 2020 |title=Bharatiya Mazdoor Sangh asks state units to oppose changes in labour laws |work=Business Standard India |url=https://www.business-standard.com/article/economy-policy/rss-affiliated-union-asks-state-units-to-oppose-changes-in-labour-laws-120051200035_1.html |access-date=28 February 2022 |archive-date=28 February 2022 |archive-url=https://web.archive.org/web/20220228104519/https://www.business-standard.com/article/economy-policy/rss-affiliated-union-asks-state-units-to-oppose-changes-in-labour-laws-120051200035_1.html |url-status=live }}</ref>

==Healthcare==
[[File:Forecasting public healthcare expenditure by Government of India.jpg|left|thumb|390x390px|Forecasting public healthcare expenditure by Government of India<ref>{{Cite web |author=Avishek Majumder |date=6 December 2018 |title=Understanding public healthcare expenditures by the Government of India |url=https://www.projectguru.in/understanding-public-healthcare-expenditures-government-india/ |access-date=28 February 2022 |website=Project Guru|archive-date=28 February 2022 |archive-url=https://web.archive.org/web/20220228151402/https://www.projectguru.in/understanding-public-healthcare-expenditures-government-india/ |url-status=live }}</ref>]]

India's health budget increases under Modi's premiership have been criticised as disappointing despite new measures such as expanded health insurance, a national dialysis programme, and more government-run pharmacies offering low-cost generic medicines. While private healthcare welcomed these steps, public health experts expressed concerns that public healthcare funding remains inadequate, and that public health services were being outsourced to the private sector.<ref>{{Cite journal |last=Mudur |first=Ganapati |date=4 March 2016 |title=Rise in India’s health budget is “disappointing,” say experts |url=https://www.proquest.com/openview/edba3e082ac91d49f9cbddd3f4964099/1?pq-origsite=gscholar&cbl=2043523 |journal=[[The BMJ]] |doi=10.1136/bmj.i1338 |pmid=26944481|url-access=subscription }}</ref>

The [[COVID-19 pandemic in India|COVID-19 pandemic]] led to a [[Economic impact of the COVID-19 pandemic in India|major economic fallout in India]], with a rise in poverty, unemployment, and a recession. In May 2020, Modi announced an overall economic stimulus package worth {{INRConvert|20|lc|lk=on|year=2020}}. By December 2020, it was revealed that less than 10% of the stimulus had been disbursed.<ref>{{Cite news|date=13 December 2021|title=Rs 20 lakh-crore pandemic package: Barely 10% disbursed, says RTI|work=The Economic Times|agency=Indo-Asian News Service|url=https://economictimes.indiatimes.com/news/economy/finance/rs-20-lakh-crore-pandemic-package-barely-10-disbursed-says-rti/articleshow/79703689.cms?ncode=6be610441d2ae972cd29b752110f7bc5ac59cf341a094c32e7bd9b2c3806ca7216ed80d76b9d498ad2cf71b0f49661af3e45cb7959b9fe58cfa0ca4842e8e5f1bc1da39015054cc5d2962a0a54678ace|access-date=14 December 2020}}</ref> By December 2021, India was back to pre-COVID-19 growth.<ref>{{Cite web |date=7 December 2021 |title=HTLS 2021: We’re largely back to pre-Covid growth, says FM Sitharaman |url=https://www.hindustantimes.com/india-news/htls-2021-we-re-largely-back-to-pre-covid-growth-fm-101638641716838.html |website=[[Hindustan Times]]}}</ref>

==Public transportation==
The government entered into significant agreements with [[General Electric]] and [[Alstom]] to supply India with 1,000 new diesel locomotives as part of a broader effort to reform the Indian railway system, which also encompassed privatisation initiatives.<ref>{{cite web |last=Riley |first=Charles |date=10 November 2015 |title=GE to build 1,000 trains for India in massive deal |url=https://money.cnn.com/2015/11/10/news/india-railways-ge/ |access-date=17 October 2021 |work=[[CNNMoney]] |archive-date=27 June 2022 |archive-url=https://web.archive.org/web/20220627063414/https://money.cnn.com/2015/11/10/news/india-railways-ge/ |url-status=live }}</ref><ref>{{cite web |last=Narayan |first=Adi |date=9 November 2015 |title=India's $5.6 Billion GE, Alstom Deals Step Up Rail Overhaul |url=https://www.bloomberg.com/news/articles/2015-11-09/ge-wins-2-6-billion-contract-to-make-1-000-locomotives-in-india |access-date=17 October 2021 |publisher=[[Bloomberg News]] |archive-date=24 August 2021 |archive-url=https://web.archive.org/web/20210824043640/https://www.bloomberg.com/news/articles/2015-11-09/ge-wins-2-6-billion-contract-to-make-1-000-locomotives-in-india |url-status=live }}</ref>

In December 2015, the Modi administration signed an agreement with [[Japan]] to jointly develop a [[high-speed rail]] network connecting [[Mumbai]] and [[Ahmedabad]].<ref>{{cite web |date=13 December 2015 |title=Japan and India sign bullet train deal amid closer ties |url=https://www.bbc.com/news/business-35086944 |access-date=17 October 2021 |publisher=[[BBC News]] |archive-date=17 December 2015 |archive-url=https://web.archive.org/web/20151217074732/http://www.bbc.com/news/business-35086944 |url-status=live }}</ref>

{{Anchor|Railways}}
Under his leadership, the [[Railway budget of India|Railway Budget]] was merged with the [[Union budget of India|Union Budget of India]]. Additionally, the date for presenting the budget was changed from 28 February to 1 February, and the financial year was adjusted from July to April. Moreover, the distinction between planned and non-planned expenditure was abolished. The Modi government also dismantled the [[Foreign Investment Promotion Board]] (FIPB), which had been viewed as a barrier to foreign direct investments.<ref>{{citation |last=Dutta |first=Prabhash K. |title=3 years of PM Narendra Modi: Here's how NDA government performed on economic front |date=26 May 2017 |url=http://m.indiatoday.in/story/narendra-modi-bharatiya-janata-party-nda-government-third-anniversary-economy/1/963861.html |work=[[India Today]] |access-date=19 October 2021 |archive-date=3 December 2017 |archive-url=https://web.archive.org/web/20171203193516/http://m.indiatoday.in/story/narendra-modi-bharatiya-janata-party-nda-government-third-anniversary-economy/1/963861.html |url-status=live }}</ref>

==See also==
* [[Premiership of Narendra Modi]]
* [[Timeline of the Narendra Modi premiership]]
* [[Foreign policy of the Narendra Modi government]]

==References==
{{Reflist}}

{{Narendra Modi}}

[[Category:Narendra Modi]]
[[Category:Modi administration]]
[[Category:Economic policy in Asia]]
[[Category:Economic history of India (1947–present)]]
[[Category:Neoliberalism]]

Economic policy of the Narendra Modi government - Revision history

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