Introduction
Under the leadership of Prime Minister Narendra Modi, the Indian government has embarked on a transformative journey aimed at improving the country's economic landscape and promoting sustainable development. This article explores the 10 major achievements of the Modi government's tenure, emphasizing their impact on India's financial and developmental trajectories.
1. Controlling Retail Inflation
One of the most significant challenges the Indian economy faced was retail inflation, which directly affected the everyday lives of millions of Indians. The Modi government's focus on reducing inflation through monetary and fiscal policies has paid off. According to recent reports from the International Monetary Fund (IMF), the government scored a perfect 10/10 on this metric. This achievement can be attributed to reforms in the agricultural sector, energy pricing, and a prudent approach to fiscal management.
2. GST: One Nation, One Tax Rate
The introduction of the Goods and Services Tax (GST) marks a monumental step in the economic integration of India. Although the implementation has encountered several challenges due to its complexity and the numerous changes in taxation, the passage of this reform is crucial. The GST sought to eliminate multiple levies and unify the tax structure, leading to a more streamlined business environment and reduced trade barriers.
3. Demonetization and Crackdown on Shadow Economy
The demonetization of high-value currency notes in 2016 was a bold and controversial move by the Modi government. While the move faced criticism and analysis, it also dealt a significant blow to the shadow economy—a sector characterized by cash transactions and undeclared income. This initiative, despite its initial hardships, has been deemed effective in combating black money and promoting a more transparent financial ecosystem.
4. Bank Reforms and Targeting Defrauders
The government's efforts to fight financial corruption and recover unpaid loans have been notable. The targeted approach towards defaulters serves as a deterrent and ensures the soundness of India's banking system. Reforms in banking policies have streamlined the process of identifying and recovering defaulted loans, leading to a more robust and reliable financial infrastructure.
5. Affordable Housing under RERA and CLSS
The Modi government's initiative to provide affordable housing through the Real Estate (Regulation and Development) Act (RERA) and the Credit Linked Subsidy Scheme (CLSS) has been a cornerstone of the nation's efforts to improve living conditions for the middle-income group. These initiatives, aligned with the Pradhan Mantri Awas Yojana Urban (PMAY-U), have played a pivotal role in addressing the housing crisis and providing financial assistance to those in need.
6. Crackdown on Shell Firms and NGOs
The government's stringent measures against shell firms and NGOs have been instrumental in curbing black money and improving transparency. Operations targeting unaccounted foreign funding to NGOs have helped in halting projects that were being stalled due to lack of transparency. This crackdown has significantly enhanced the integrity of India's financial sector.
7. Long-Term Capital Gains (LTCG) Tax
The introduction of a LTCG tax at the perfect time played a crucial role in regulating the overheated stock market. By addressing the potential for a market crash, this tax helped stabilize the financial markets and promote a healthy investment climate.
8. Crackdown on Bitcoin and Other Cryptocurrencies
The government's crackdown on cryptocurrencies such as Bitcoin has been seen as a masterstroke. It has protected the retail trader from economic annihilation, ensuring that the cryptocurrency market operates under stricter regulatory frameworks. This move has also facilitated the promotion of traditional financial systems and services.
9. Insolvency and Bankruptcy Code (IBC) 2016
The IBC 2016 has been a much-needed reform that created a uniform and comprehensive legal framework to handle corporate insolvency and bankruptcy. This reform has not only provided relief to distressed credit markets but has also advanced the BJP's agenda to improve the ease of doing business in India. By ensuring early identification of potential insolvency, this code maximizes the value of insolvent assets for creditors and provides a much-needed boost to India's credit markets.
10. Make in India and FDI Inflow
The "Make in India" campaign has attracted substantial foreign direct investment (FDI), particularly in vital sectors such as defense, e-commerce, and pharmaceuticals. This initiative has led to a record average FDI inflow of 52.2 billion annually over the past four years, significantly contributing to India's economic growth and industrial development.
Conclusion
The achievements of the Narendra Modi government in India's economy and development are multifaceted and substantial. From controlling inflation to promoting a transparent and robust financial system, the government's initiatives have had a profound impact on the country's progress. While there may be differing opinions on specific measures, these significant reforms have laid the foundation for a brighter and more prosperous future for India.