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Premiership of Narendra Modi

Period of the Government of India since 2014

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  • 9 chapters

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Through Indian National Congress, India and Jawaharlal Nehru

In 2019, he was elected as the prime minister of India for a second term and sworn in at the Rashtrapati Bhavan on 30 May 2019. His second cabinet consisted of 54 ministers and initially had 51 ministers, which was expanded to 77 ministers during a reshuffle on 7 July 2021. Modi was sworn in for a third term as prime minister, heading a coalition government, on 9 June 2024.

His premiership has, to a considerable extent, embodied a high command culture. India has experienced significant democratic backsliding under his tenure.

Modi is the longest serving non-Congress prime minister of India. In 2024, Modi became the first non-Congress leader to win three consecutive general elections and secure a third consecutive term as prime minister of India, with Jawaharlal Nehru being the only other person to do so. As of August 2025, Modi is the third longest serving prime minister of India, after Jawaharlal Nehru and Indira Gandhi in terms of number of days in office. His first cabinet consisted of 45 ministers, 25 fewer than the previous United Progressive Alliance (UPA) government. A total of 21 ministers were added to the council of ministers on 9 November 2014.

Economic policies

Overall

The economic policies of Modi's government focused on privatisation and liberalization of the economy, based on a neoliberal framework. Modi liberalised India's foreign direct investment policies, allowing more foreign investment in several industries, including in defence and the railways.

The first eight years of Modi's premiership, India's GDP grew at an average rate of 5.5% compared to the rate of 7.03% under the previous government.

The level of income inequality increased significantly, while an internal government report said that in 2017, unemployment had increased to its highest level in 45 years. This was attributed to the 2016 demonetisation, which was an issuance of new banknotes in an effort to curtail the black market, as well as the effects of the Goods and Services Tax, the biggest tax reform in the country since independence.

One of the major impacts of Modi's economic reforms has been introduction of UPI payment service, an indigenous payment system that made India a leading nation in cashless transactions. UPI has visibly contributed to reduced corruption and increased financial inclusion.

Labour and employment

Modi's labour reforms received support from institutions such as the World Bank, but opposition from socialist and communist parties, scholars, and worker rights groups within the country. The labour laws also drew strong opposition from 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. In 2025, Modi's government announced reforms to the country's labour laws.

Healthcare

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.

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.

In December 2015, the Modi administration signed an agreement with Japan to jointly develop a high-speed rail network connecting Mumbai and Ahmedabad.

Under his leadership, the Railway Budget was merged with the 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.

Other major reforms and policies

The government has increased the Budget for National Mission for Green India from Rs. 290 Crore($38,511,333.00 in USD) to 361.69 Crore($48,034,782.98 in USD). The public expenditure on education including technical education as a percentage of GDP for the year 2013-2014 was 4.44% which was later reduced to 4.35% in the year 2014-2015 and was later increased to 4.56% in the year 2015–2016 by Modi Government.

The government substantially increased the percentage of central revenue directly granted to states, while decreasing the amount granted through various central government programs. Overall, states' share of revenue increased marginally. The criteria upon which individual states' allocation was determined were changed, such that the revenue to 19 states increased, and that of 10 states decreased. Only one of the ten states was ruled by the BJP when the policy was enacted.

On 25 June 2015, Modi launched a program intended to develop 100 smart cities. The "Smart Cities" program is expected to bring IT companies an extra benefit of ₹20 billion (US$210 million). He also launched a "smart villages" initiative, under which villages would be given Internet access, clean water, sanitation, and low-carbon energy, with Members of Parliament overseeing the program's implementation. The program had a stated goal of at least 2,50 smart villages by 2019.

Give up LPG subsidy was a campaign launched by Modi in March 2015. It was aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy. As at 23 April 2016 1 crore ( 10 million) people had voluntarily given up the subsidy. The surrendered subsidy is being used by the government to provide cooking gas connections to poor families in rural households free of cost. Maharashtra, Uttar Pradesh, Karnataka, Delhi and Tamil Nadu are the top five states to give up the subsidy.

Social welfare

Modi launched Pradhan Mantri Jan Dhan Yojana (PMJDY) in August 2014. The initiative aimed to create bank accounts and debit cards for 150 million families, and to allow them an overdraft of ₹5,000 (US$52) and accident insurance. After the launch, 125.4 million accounts were opened by January 2015. The scheme has failed to improve the economic prosperity across states. "Poor usage of financial services" and "a rise in the number of dormant accounts" have been cited as the limitations of the scheme, with 30% of accounts remaining dormant.

Modi government launched the Pradhan Mantri Mudra Yojana (PMMY) in April 2015. Under this scheme, loans up to ₹1 million (US$10,000) are given for non-agricultural activities under the three categories: Shishu (loans up to ₹50,000 (US$520)); Kishore (loans from ₹50,000 (US$520) to ₹500,000 (US$5,200)) and Tarun (loans from ₹500,000 (US$5,200) to ₹1 million (US$10,000)). According to a report by the SKOCH Group, this scheme has generated 1.68 crore incremental jobs in the first two years until September 2017.

In June 2015, Modi launched the "Housing for All By 2022" project, which intends to eliminate slums in India by building about 20 million affordable homes for India's urban poor. A total of 4,718 camps were held from 2014 to 2017, benefiting 6.40 lakh beneficiaries under Assistance to Disabled Persons for Purchase/Fitting of Aids/Appliances (ADIP) scheme, as compared to 37 camps from 2012 to 2014.

In 2019, a law was passed to provide 10% reservation to Economically weaker sections.

Modi also launched Pradhan Mantri Ujjwala Yojana (PMUY) on 1 May 2016 to distribute 50 million LPG connections to women of BPL families. A budgetary allocation of ₹800 billion (US$8.3 billion) was made for the scheme. In the first year of its launch, the connections distributed were 22 million against the target of 15 million. As of 23 October 2017, 30 million connections were distributed, 44% of which were given to families belonging to scheduled castes and scheduled tribes. The number crossed 58 million by December 2018. In 2018 Union Budget of India, its scope was widened to include 80 million poor households. 21,000 awareness camps were conducted by oil marketing companies (OMC). The scheme led to an increase in LPG consumption by 56% in 2019 as compared to 2014.

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