Modi's economic transformation: A decade of change in India

As Prime Minister Narendra Modi enters the 11th year of his leadership, India stands transformed economically and diplomatically. Under Modi’s administration, the country has witnessed robust economic growth, ambitious reforms, and a rise in global stature.

India’s GDP has grown dramatically from approximately $2 trillion in 2014 to $3.57 trillion in fiscal year 2023, making it the world’s fifth-largest economy, overtaking the U.K. According to Morgan Stanley, if GDP growth sustains between 6% and 7%, India could surpass Germany and Japan by 2027 to become the third-largest economy globally.

Purchasing Power Parity (PPP) rankings already place India third, following the United States and China. Modi’s economic agenda—dubbed “Modinomics” in local media—has been lauded for initiatives like “Make in India,” which bolstered manufacturing, and “Digital India,” which revolutionized financial inclusion with over 50 crore new bank accounts.

Despite challenges like the COVID-19 pandemic, global economic slowdown, and controversial policies like the 2016 demonetization, India achieved a consistent 6.5% average growth rate during Modi’s tenure. The country also saw foreign exchange reserves swell from $304 billion in 2014 to $690 billion in October 2024, boosted by foreign direct investment (FDI) and strong export performance.

On the global stage, Modi has maintained diplomatic relations with countries across ideological divides. India has balanced ties with the U.S., Russia, and China while strengthening partnerships in the Middle East, Europe, and beyond. Trade with China reached $118 billion in 2023 despite border disputes, underlining Modi’s pragmatic approach.

However, critics argue that economic gains have come at the cost of rising unemployment and poverty. India’s unemployment rate hovers at 7.8%, with over 230 million people still living below the poverty line. Religious minorities have also faced increased violence, according to international human rights groups.