Economic Liberalization under Modi's Government
The economic policies implemented during Narendra Modi's tenure as Prime Minister of India primarily revolved around the principles of privatization and liberalization, in line with a neoliberal framework. This approach aimed to reshape the Indian economy by reducing government intervention and promoting free-market mechanisms. One of the significant elements of this strategy was the liberalization of foreign direct investment (FDI) policies, which represented a shift towards welcoming greater foreign capital into the Indian market.
Modi's government made substantial changes to FDI norms across various sectors, allowing increased foreign participation in vital industries such as defense, railways, and telecommunications. This openness was expected to bolster domestic industries, create jobs, and enhance technology transfer, ultimately aiming for accelerated economic growth. For instance, in the defense sector, the government raised the FDI cap to 74%, facilitating international partnerships and encouraging global defense manufacturers to establish operations in India.
The emphasis on privatization also led to a renewed focus on the disinvestment of government-owned enterprises. By selling stakes in state-owned companies, the government aimed not only to reduce fiscal burden and enhance efficiency but also to attract much-needed capital into various sectors. The privatization drive was met with both support from proponents of free markets and criticism from those concerned about the potential loss of public control over essential services. Nevertheless, Modi's economic agenda sought to position India as a competitive player in the global economy through structural reforms aiming for sustainability and growth.
In summary, Modi's administration focused on broad economic reforms designed to liberalize and privatize the economy. These reforms aimed to facilitate foreign investment, increase efficiency through market competition, and stimulate economic growth while preparing the Indian economy for the challenges of globalization.
Labour Reform
The labour reforms initiated by the administration of Prime Minister Narendra Modi aimed to overhaul the existing labor laws in India, which were perceived as outdated and overly restrictive. The government's intention was to attract investment and encourage job creation by simplifying the regulatory environment for businesses. However, these reforms faced significant criticism from various quarters, particularly from labor unions and certain academics. Detractors argued that the changes primarily benefited employers at the expense of workers’ rights, making it more challenging for workers to form unions and more convenient for employers to engage in practices such as hiring and firing without adequate checks.
The reforms received endorsement from international financial bodies like the World Bank, which viewed them as a positive step towards improving the ease of doing business in India. However, the local reaction was more divided, with substantial pushback from trade unions who feared that these changes would erode hard-won labor rights and protections. On September 2, 2015, a massive strike was organized by eleven of India's largest labor unions, including one tied to the ruling Bharatiya Janata Party (BJP). This strike was significant not only for its scale but also for the impact it had on the economy, which was estimated to cost approximately $3.7 billion.
The Bharatiya Mazdoor Sangh, affiliated with the Sangh Parivar, expressed deep concerns regarding the negative implications of these labour reforms. They argued that the changes would facilitate corporate exploitation of laborers, undermining their rights and leading to a deterioration of working conditions. This tension between government initiatives aimed at economic growth and the protection of labor rights illustrates the complexities of reforming India's labor market. As India moves forward, striking a balance between encouraging business investment and safeguarding the rights of workers will remain a critical challenge for policymakers.
Economy
During Narendra Modi's first budget, Finance Minister Arun Jaitley set a proactive agenda, committing to a gradual reduction of the budgetary deficit from 4.1% to 3% within two years. This move aimed to enhance fiscal discipline and restore investor confidence in India's economic stability. Additionally, the government focused on divesting shares in public banks, which was seen as a strategy to streamline operations and attract private investments. As Modi's administration commenced, a significant milestone was reached with India's GDP soaring at an impressive growth rate of 7.5%, establishing it as the fastest-growing economy globally. This surge was supported by a new methodology for calculating GDP that was instated just after Modi took office, which generated considerable surprise and debate among economists regarding its implications on true economic performance.
However, the early optimistic growth trajectory faced challenges as the GDP growth rate dropped to 6.1% by the third year of Modi's administration, raising concerns among economists and policymakers. This decline was largely attributed to two major policy moves: the controversial demonetization initiative in 2016, which aimed to curb black money and counterfeit currency, and the rollout of the Goods and Services Tax (GST), which aimed to simplify the tax structure. While these reforms had long-term objectives, their immediate impact saw a sharp rise in unemployment, with internal government reports indicating it had reached its highest level in 45 years by 2017. As industries struggled to adapt to the sudden changes, job losses began to mount, leading to an increase in income inequality across the country.
Modi's international trade policies also raised eyebrows, notably when he declined to endorse a critical trade agreement with the World Trade Organization in July 2014. He cited concerns that the deal could undermine protections for Indian farmers and compromise food security, arguing it would diminish India's bargaining power on the global stage. In the aviation sector, however, positive developments included a 23% growth in passenger traffic in 2016, alongside over a 25% decrease in airfares, indicating increased accessibility to air travel for the general populace.
Throughout his first term, Modi's administration achieved an average GDP growth rate of 7.23%, surpassing the previous government's 6.39%. Still, the final year of his first term was overshadowed by a lack of substantial economic advancements, as the government shifted its focus towards defense policies and promoting the ideological framework of Hindutva. Nonetheless, it was noted that the administration placed emphasis on social welfare measures, particularly by enhancing pension schemes for senior citizens and marginalized communities. The economic landscape for 2018-19 reflected the ongoing struggles, marking a growth rate of 6.1% that remained below the average rate established in the initial years of Modi’s leadership. The persistent effects of demonetization and the implementation of GST continued to weigh heavily on the economy, as the government sought to navigate these complex challenges while laying the groundwork for future reforms.
Make in India
Launched in September 2014, the Make in India initiative under Prime Minister Narendra Modi aimed to position India as a competitive manufacturing powerhouse on the global stage. The initiative sought to attract foreign investments by encouraging multinational corporations to manufacture their products within India, thereby fostering a favorable environment for domestic industries. By enhancing India's manufacturing capabilities, the initiative aimed to not only boost the economy but also create a robust job market, thereby addressing issues of unemployment.
Supporters of economic liberalization applauded the initiative, viewing it as a significant step toward further integrating India's economy with global markets. They cited the potential for technology transfer and improved efficiency as key benefits of foreign investments in India's manufacturing sector. On the other hand, the initiative faced criticism from various quarters. Detractors expressed concerns that prioritizing foreign corporations could lead to monopolistic practices and diminish opportunities for local businesses, potentially diluting India's indigenous manufacturing base.
The Make in India initiative outlined three primary objectives aimed at transforming the manufacturing landscape of the country. The first goal was to achieve a substantial growth rate in the manufacturing sector, targeting 12-14% per annum. Such growth is crucial for maintaining competitive advantage and driving economic expansion. The second aim was to create an impressive 100 million additional manufacturing jobs by 2022, a milestone set to tackle the pressing issue of unemployment in the country and thus enhance the standard of living for many citizens. Lastly, the initiative aimed to elevate the manufacturing sector's contribution to India's GDP to 25% by 2022, a target that was later revised to 2025, reflecting the ambition to diversify the economy and reduce reliance on agriculture and services.
To implement these goals, the government sought to improve the ease of doing business in India by simplifying regulations, enhancing infrastructure, and promoting skill development. Specific sectors such as electronics, automobiles, and textiles were identified as focus areas for investment and growth under the Make in India initiative. Over the years, various policy measures and incentives were introduced to facilitate investment, including tax breaks and financial assistance for new ventures, further highlighting the government's commitment to this transformative initiative.
As of October 2023, Make in India continues to play a pivotal role in shaping the manufacturing landscape of the country, with ongoing efforts to harness innovation and foster sustainability within the sector. While challenges remain in achieving the ambitious targets originally set, the initiative has undeniably sparked discussions on the vital importance of manufacturing in achieving economic resilience and self-reliance.
Healthcare Investment Trends
Under the premiership of Narendra Modi, public health expenditure in India has seen significant fluctuations. Initially, in the fiscal year 2013-14, public health spending was recorded at 1.3% of the country's GDP. This figure was slightly reduced to 1.2% in the following years under Modi's governance. However, a positive development occurred in 2016-17, when public health expenditure was increased to 1.5% of GDP. This increase reflects a growing recognition of the need for enhanced investment in the healthcare sector.
The changes in health spending are indicative of a broader strategy aimed at improving healthcare accessibility and quality for the Indian populace. The Modi government recognized several challenges in the healthcare system, including inadequate infrastructure, shortages of medical professionals, and limited access to essential services, particularly in rural areas. By increasing the allocation of resources to healthcare, the government aimed to address these pressing issues.
In addition to direct financial allocations, the Modi administration has emphasized several health initiatives to boost public health. Programs like Ayushman Bharat have been introduced, aiming to provide health insurance to the most vulnerable populations, thus improving their access to essential healthcare services. The rise in health expenditure and the implementation of such initiatives are part of a concerted effort to lay the groundwork for a more robust and effective healthcare system in India, ultimately striving for better health outcomes across the nation.
Oil Prices and Tax Adjustments
In October 2014, under the leadership of Prime Minister Narendra Modi, the Indian government took significant steps to deregulate fuel prices, particularly diesel. This shift aimed at creating a market-driven pricing mechanism, allowing prices to be determined based on global crude oil fluctuations. However, the government also implemented a series of tax increases during this period, raising diesel taxes by Rs 13 and petrol taxes by Rs 11 from June 2014 to January 2016. This strategy primarily aimed to bolster government revenues while transitioning to a deregulated fuel market.
As the global oil market experienced volatility, the Indian government carefully monitored the internal implications. Between February 2016 and October 2018, the administration responded to fluctuations in global prices by reducing taxes on petrol and diesel by Rs 4. This move was essential in keeping the retail selling prices in check and providing relief to consumers amid volatile global oil prices. The government recognized that stabilizing domestic fuel prices was crucial for managing inflation and ensuring economic stability.
The scenario changed dramatically during the early months of 2020 when global crude oil prices plummeted by approximately 69%. Capitalizing on this decline, the Indian government raised excise duties once more in May 2020, imposing an increase of Rs 10 per litre on petrol and Rs 13 per litre on diesel. This decision was indicative of the government's strategy to reconcile budgetary needs with fluctuating global oil prices. Despite substantial adjustments to taxes, the retail selling prices of fuel in India remained relatively stable, showcasing the Modi government's ability to navigate complex economic landscapes while balancing fiscal responsibilities and consumer interests. The management of oil prices during this period demonstrated a significant aspect of Modi's economic policy, focusing on stability and sustainability in the face of global market challenges.
Land Reforms under Modi Administration
The Modi administration has undertaken significant amendments to the existing Land Acquisition Act of 2013 to facilitate the establishment of various defence and industrial corridors across India. This legislative shift allows the government to acquire private land without the consent of landowners for specific categories of projects deemed essential for national interest and development. The projects that fall under this exemption include those related to defence, rural infrastructure, affordable housing, industrial corridors developed by government entities, and infrastructure projects involving public-private partnerships (PPP), particularly where the government retains ownership of the land.
Under the original framework of the 2013 Land Acquisition Act, the process for land acquisition was quite stringent, requiring different percentages of landowner consent based on the project type. Specifically, while public projects required essentially no consent, public-private projects mandated 70% approval from landowners, and private projects needed 80% consent. The new amendments have streamlined these processes, particularly for the five designated project types, aiming to reduce bureaucratic hurdles and accelerate the pace of critical infrastructural development.
To further enhance transparency and effective land management, the new bill mandates that the government conduct comprehensive surveys of wasteland across the country and maintain a detailed record of these lands. This provision aims to better utilize land resources and reduce the dependency on fertile agricultural land for developmental projects. Despite these intentions, the amendment faced considerable opposition in parliament, leading to its passage through an executive order. Although it has taken shape, the bill eventually allowed to lapse raises questions about its future, legislative scrutiny, and the balance between development needs and landowner rights in India.
Enhancements in Public Transportation
The Indian government's commitment to enhancing public transportation is highlighted by significant partnerships and agreements aimed at modernizing the existing railway infrastructure. In a landmark initiative, large contracts were signed with global corporations such as General Electric and Alstom, which are set to supply India with 1,000 new diesel locomotives. This move is part of a broader strategy to reform the Indian Railways, which includes efforts to privatize various aspects of the railway system to promote efficiency and improve services.
In a significant leap towards high-speed rail travel, the government finalized a crucial agreement with Japan in December 2015 to collaboratively develop a bullet train system linking the bustling metropolises of Mumbai and Ahmedabad. This project not only showcases India's intentions of entering the realm of advanced transportation but also represents a critical step in reducing travel times and enhancing connectivity between major urban centers. The bullet train initiative is expected to set new standards in travel speed and comfort for passengers.
Under Modi's administration, the budgetary framework for railways underwent a transformative change when the Railway budget was merged into the Union Budget of India. This strategic shift, effective from 2017, allows for a more comprehensive overview of the nation's financial allocations and priorities. The presentation of the budget was moved from its traditional date of 28 February to 1 February, enabling earlier planning and execution of projects. Moreover, the fiscal calendar was revised to align with the financial year commencing in April rather than July, improving coherence in budget management.
Additionally, the government eliminated the previously prevalent artificial distinction between planned and non-planned expenditures, simplifying the budgeting process. By dismantling the Foreign Investment Promotion Board (FIPB), which had been viewed as a barrier to foreign direct investment (FDI) inflows, the Modi regime aimed to create a more attractive investment climate. This move is expected to encourage international investments in various sectors, including public transportation and infrastructure, fostering a more robust and dynamic economic environment.
COVID-19 Pandemic Impact
The COVID-19 pandemic devastated economies around the world, and India was no exception. In 2020, as the country implemented a nationwide lockdown to contain the spread of the virus, the industrial sector faced unprecedented challenges. This resulted in a staggering GDP contraction, with India experiencing a historic quarterly decline of -23%. The implications of this downturn were profound, affecting millions of livelihoods, particularly in the informal sector, where a significant proportion of the workforce is employed.
In response to this economic crisis, Prime Minister Narendra Modi initiated the Atmanirbhar Bharat movement, which translates to "Self-Reliant India." The primary aim of this initiative was to bolster the country's economy by promoting local businesses and reducing dependency on foreign products, particularly from China. The government introduced various schemes designed to support small-scale and indigenous enterprises, thereby fostering a sense of economic independence and resilience. To further cushion the economy's blow, Modi announced a large-scale relief package worth ₹20 lakh crore, approximately equivalent to ₹24 trillion or US$280 billion in 2023. This package provided critical financial support to various sectors hit hard by the pandemic, including agriculture, manufacturing, and services.
Additionally, the Indian government laid out plans to enhance transportation infrastructure as a strategy for economic recovery and growth. A notable initiative was the conversion of 101 rivers into national waterways, aimed at facilitating the efficient movement of goods and passengers across the country. This move not only seeks to modernize India’s transport infrastructure but also aims to promote sustainable development by utilizing rivers for transport. In tandem with this, an ambitious highway expansion program was launched, with an allocation of ₹700 billion (approximately US$8.4 billion) earmarked for the project. This multi-faceted approach reflects the government’s commitment to revitalize the economy and stimulate growth in a post-pandemic landscape.
Major Reforms and Policies Under Modi Government
Under the leadership of Narendra Modi, the Indian government has implemented a series of significant reforms and policy initiatives aimed at enhancing governance and promoting sustainable development. One notable example is the increase in the budget for the National Mission for Green India, which was raised from Rs. 290 crore (approximately $38.5 million) to Rs. 361.69 crore (approximately $48 million). This initiative underscores the government's commitment to environmental sustainability and green growth, aligning with global efforts to combat climate change.
In the realm of education, the Modi government has made substantial investments aimed at improving educational outcomes. The public expenditure on education, including technical education, was maintained at a competitive level, with the percentage of GDP allocated increasing from 4.35% in 2014-2015 to 4.56% in 2015-2016. Such investments are critical as they lay the groundwork for a more educated workforce, which is crucial for India's economic progress.
The approach to revenue sharing between the central and state governments also underwent changes during Modi's tenure. There's been a notable increase in the percentage of central revenue granted directly to states, although the funding provided through central government programs decreased. This adjustment in the revenue-sharing formula meant that while 19 states saw an increase in allocations, 10 states experienced a decrease. Interestingly, the only state among those ten that was ruled by the Bharatiya Janata Party (BJP) at the time of the change was relatively unaffected compared to its counterparts.
In an ambitious move to modernize urban infrastructure, Modi launched the Smart Cities Mission on June 25, 2015. This program aims to develop 100 smart cities across India, leveraging technology and sustainable practices to improve urban living conditions. Through these efforts, it is estimated that IT companies could gain significant benefits, projected at around ₹20 billion ($240 million). Concurrently, the government initiated a "smart villages" project, which aims to enhance rural areas by providing internet access, clean water, sanitation, and low-carbon energy. The ambitious target was to establish at least 2,500 smart villages by 2019, showcasing the government's holistic approach towards both urban and rural development.
The government also launched the "Give up LPG subsidy" campaign in March 2015, aimed at encouraging wealthier LPG users to voluntarily forgo their subsidies. This initiative saw significant participation, with approximately 10 million individuals opting to surrender their subsidy by April 2016. The funds saved from these surrendered subsidies were redirected to provide free cooking gas connections to underprivileged households in rural areas. States like Maharashtra, Uttar Pradesh, Karnataka, Delhi, and Tamil Nadu led the way in this initiative.
In 2017, the implementation of the Goods and Services Tax (GST) marked a transformative moment in India’s tax landscape. Considered one of the most important tax reforms since independence, GST consolidated around 17 different taxes into a single tax structure, which came into effect on July 1, 2017. This reform aimed to simplify the tax process, enhance compliance, and foster a more unified market nationwide.
More recently, in March 2024, Modi participated in a virtual event titled “India’s Teched: Chips for Developed India,” where he laid the foundation for three semiconductor projects with an investment of approximately Rs 1.25 lakh crore. This initiative aligns with Modi's vision of establishing India as a global hub for semiconductor design, manufacturing, and technological innovation. This ambition not only aims to create numerous employment opportunities for India’s youth but is also crucial for bolstering the country's technological infrastructure in an increasingly digital world.
Financial Inclusion Initiatives
In August 2014, Prime Minister Narendra Modi introduced the Pradhan Mantri Jan Dhan Yojana (PMJDY), a landmark initiative aimed at enhancing financial inclusion across India. The primary goal of PMJDY was to establish bank accounts and provide debit cards to 150 million families, thereby enabling them to participate in the formal banking system. Beneficiaries of this scheme were also entitled to an overdraft facility of ₹5,000 (approximately US$60), along with accident insurance coverage. The program witnessed remarkable success, as evidenced by the fact that by January 2015, over 125.4 million accounts had been opened, indicating a strong public response to the initiative. This massive enrollment played a crucial role in increasing the banking penetration in rural and semi-urban areas, facilitating easier access to financial services for previously unbanked populations.
Following the success of PMJDY, the Modi government launched the Pradhan Mantri Mudra Yojana (PMMY) in April 2015. This scheme was designed to provide financial assistance for non-agricultural activities, particularly focusing on micro and small enterprises to bolster entrepreneurship. Under PMMY, loans were categorized into three distinct segments—Shishu, Kishore, and Tarun—catering to the varying financing needs of small businesses. Shishu offered loans up to ₹50,000 (US$600), Kishore provided loans from ₹50,000 to ₹500,000 (US$6,000), and Tarun facilitated loans between ₹500,000 and ₹1 million (US$12,000). A report by the SKOCH Group highlighted the significant impact of this initiative, estimating that PMMY had generated approximately 1.68 crore (16.8 million) incremental jobs in its first two years, ending in September 2017. This not only fostered economic activity but also contributed to the country's overall employment landscape.
Both PMJDY and PMMY exemplify the Modi government's commitment to building a financially inclusive society. By facilitating access to banking services and credit, these initiatives have empowered millions of individuals and entrepreneurs, enabling them to improve their livelihoods and contribute positively to the Indian economy. The broader impacts of such schemes, particularly in promoting self-employment and small businesses, underscore the significance of financial inclusion as a key driver of sustainable development and economic growth in India.
Anti-corruption Efforts
Upon taking office, Prime Minister Narendra Modi made a decisive move by establishing a specialized team dedicated to investigating black money. This initiative marked the beginning of a broader campaign aimed at combating corruption and enhancing transparency within the Indian financial system. Modi's administration viewed the issue of black money as a significant obstacle to economic stability and growth, potentially undermining public trust in government institutions.
Economic Growth and Inequality
During the first four years of Modi's leadership, India's economy experienced considerable growth, with an average GDP increase of 7.23%, surpassing the previous administration's growth rate of 6.39%. This economic expansion was attributed to various factors, including increased foreign investment, advancements in technology, and infrastructure development. However, despite this promising growth trajectory, an internal government report indicated a stark increase in income inequality. Wealth became concentrated in the hands of a few, thereby exacerbating social divides and raising concerns about sustainable development.
Unemployment Challenges
In 2017, an alarming internal report disclosed that unemployment had surged to its highest level in 45 years, a trend that many analysts believed was linked to the economic policies enacted during Modi's tenure. The controversial demonetisation move in 2016, aimed at curbing black money and counterfeit currency, had wide-ranging implications for employment, particularly in the informal sector where many laborers faced sudden job losses. Moreover, the implementation of the Goods and Services Tax (GST) created additional challenges for small businesses, further contributing to job losses and the rise in unemployment rates.
This complex landscape underscores the multifaceted nature of Modi's economic policies and their real-world implications. While the government sought to tackle corruption and stimulate growth, the unintended consequences of these initiatives highlight the delicate balance required in policymaking, especially in a rapidly changing economic environment.
Demonetisation Overview
On 8 November 2016, the Government of India made a historic announcement to demonetise ₹500 and ₹1,000 banknotes of the Mahatma Gandhi Series, with an aim to eradicate black money, curb counterfeit currency, and eliminate the shadow economy. Alongside this demonetisation, new ₹500 and ₹2,000 banknotes were introduced to facilitate currency exchange. Prime Minister Narendra Modi framed this bold initiative as a decisive step towards fostering a cashless economy and restricting the flow of illicit funds, including those tied to terrorism.
Economic Impact and Public Reaction
The immediate aftermath of demonetisation was marked by severe cash shortages, leading to widespread disruption across various sectors of the economy. People found themselves queuing for hours to exchange their old notes, and reports emerged of individuals suffering health crises and even fatalities amid the rush. The situation highlighted the challenges faced by the populace, especially those dependent on cash transactions, such as small traders and daily wage earners.
By 2018, a report from the Reserve Bank of India revealed that an astonishing ₹15.3 lakh crore of the total ₹15.41 lakh crore in demonetised currency had been deposited back into banks, raising questions about the effectiveness of the initiative in extracting black money from the economy. The stock market bore immediate adverse effects, as evidenced by a drop exceeding 6% in the BSE SENSEX and NIFTY 50 indices just the day after the announcement. Additionally, the industrial production and GDP growth rate experienced noticeable declines, with estimates suggesting a loss of 1.5 million jobs attributed to the economic turbulence caused by the sudden withdrawal of high denomination notes.
Mixed Reception and Political Debate
In the wake of its announcement, demonetisation sparked a mix of domestic and international responses. Although some central bankers and international commentators initially expressed support, many critics labeled the exercise as poorly orchestrated and inequitable. The decision led to widespread protests and litigation against the government, manifesting discontent among segments of the society that were adversely affected. Discussions surrounding the policy took place in both houses of Parliament, delving into its short-term repercussions and the long-term implications for India’s economic landscape.
Moreover, while the short-term consequences were overwhelmingly negative for many, the demonetisation drive reportedly catalyzed an increase in digital and cashless transactions, as citizens adapted to the changing financial landscape. This shift in transaction methods signified an important move towards modernising the Indian economy, but it also underscored the immediate difficulties many faced during the transition period. The long-term success of demonetisation thus remains a pivotal topic of analysis and debate within economic and political circles in India.
Rise of Shell Companies Post-Demonetisation
Following the demonetisation move in November 2016, which aimed to eliminate black money and counterfeit currency, various regulatory authorities in India observed a troubling increase in the activity of shell companies. These entities, often used to mask the true ownership and source of wealth, began depositing significant amounts of cash in banks. This surge raised concerns that individuals were exploiting these companies to legitimize illicit funds acquired through various means, bypassing scrutiny and accountability.
Government Response to Combat Shell Companies
In response to the rise of these suspicious entities, the Indian government took decisive action starting in July 2017. Authorities issued orders for the closure of nearly 200,000 shell companies, a move aimed at cleaning up the corporate landscape and limiting avenues for financial misconduct. Additionally, the Securities and Exchange Board of India (SEBI) intervened by imposing trading restrictions on 162 listed entities identified as shell companies. This multifaceted approach signalled a commitment to promote transparency and integrity in India's financial system.
Enforcement Measures and Accountability
The crackdown intensified in September 2017 when the government initiated a freeze on the bank accounts of approximately 200,000 shell companies. This move was intended to stem the flow of illicit funds and facilitate further investigations into the practices surrounding these companies. In a significant step to enhance corporate governance and accountability, the Ministry of Corporate Affairs also moved to ban around 300,000 directors associated with these shell firms from serving on the boards of other companies. These measures aimed to not only identify the beneficial owners of these entities but also impose penalties on those caught misusing funds diverted from shell companies.
Ongoing Efforts and Implications for Corporate Governance
This comprehensive crackdown has highlighted the Indian government's commitment to battling financial irregularities, ensuring compliance, and promoting a transparent business environment. The emphasis on stripping the influence of shell companies paves the way for stricter regulations and improved scrutiny of corporate practices in India. As the government continues to implement reforms, ongoing monitoring and enforcement will be crucial in preventing the re-emergence of such entities, thereby protecting the economic integrity of the nation.
Infrastructure Development in India
Under the leadership of Prime Minister Narendra Modi, the Indian government has prioritized the enhancement of the nation’s infrastructure, recognizing its pivotal role in economic growth and development. One significant legislative achievement in this domain was the passage of the National Waterways Act in 2016, which set the foundation for the development of 111 National Waterways across the country. This ambitious initiative aims to utilize India's vast river systems for transportation and trade, thereby easing congestion on road networks and providing a more cost-effective means of moving goods.
The National Waterways Act focuses on promoting the use of inland waterways, which are often underutilized yet offer immense potential for easing transport logistics. By encouraging commercial navigation on rivers, the government aims to create alternate routes for freight transport, significantly reducing delivery times and costs. This initiative also aligns with the broader goals of sustainable development, as water transport is generally more environmentally friendly compared to road and rail transport, producing lower emissions and preserving energy resources.
Moreover, the transformation of these waterways is expected to boost local economies, particularly in rural and semi-urban areas, where better connectivity can facilitate trade and create job opportunities. The project includes plans for the construction of terminals, jetties, and essential amenities to support passengers and cargo. It also opens up the possibility for tourism development along river routes, which could further stimulate economic growth and improve livelihoods in local communities.
Additionally, the development of National Waterways complements other infrastructure initiatives undertaken by the Modi government, such as the Sagarmala Program aimed at port modernization and coastal community development, and the Bharatmala Initiative enhancing road connections nationwide. By integrating different modes of transportation, the government aspires to create a more robust and efficient logistics framework that can propel India towards becoming a global economic powerhouse.
PM Awas Yojana Initiation
In June 2015, under the leadership of Prime Minister Narendra Modi, the Ministry of Housing and Urban Affairs (MoHUA) launched the PM Awas Yojana (PMAY) with a transformative mission to provide affordable housing to the nation's economically disadvantaged populations. Recognizing the pressing need for accessible housing, this initiative was designed to extend financial assistance and facilitate the construction of homes, thus aiming to elevate the living standards of millions who fall under the Economically Weaker Sections (EWS) and Low Income Groups (LIG).
Financial Commitment and Objectives
The PM Awas Yojana has set an ambitious target of constructing 2 crore houses for the underprivileged by the year 2022. To accomplish this monumental objective, the central government committed a substantial financial outlay of ₹2 lakh crore (approximately US$25 billion). This investment was intended not just to provide shelter, but also to contribute to the broader goals of urban development and poverty alleviation. The program ultimately seeks to create a conducive environment where beneficiaries can thrive, thus integrating them more fully into the economic fabric of the country.
Impact and Outreach
As a cornerstone of the government's housing strategy, PM Awas Yojana has had a profound impact on urban planning and housing policies in India. By enabling access to affordable housing, the scheme has helped reduce homelessness and improve living conditions for millions. Furthermore, the initiative encourages the use of eco-friendly construction practices, which aligns with the government's long-term vision of sustainable development. The outreach of PMAY has expanded to include various segments of society, ensuring that marginalized voices are recognized and included in the development narrative.
Future Aspirations
Moving forward, the government aims to build upon the successes of PM Awas Yojana by continuing to promote policies that enhance housing accessibility and affordability. The future of the program includes proposals for expanding the benefits to include more innovative housing solutions, such as the promotion of smart and energy-efficient homes. The ambitious target of "Housing for All" encapsulates the essence of this initiative, demonstrating a commitment to not only provide shelter but also foster community development and economic empowerment across diverse regions of India.
Nationwide Strike by Bank Employees
On March 27, 2022, employees across India’s banking sector initiated a nationwide strike that lasted two days, demonstrating their strong opposition to the government’s proposed plan to privatize public sector banks. This protest was organized by various trade unions representing bank employees, highlighting widespread concerns about the potential consequences of privatization on job security, service accessibility, and the overall stability of the financial system. The move to privatize public sector banks was perceived by many as a deviation from the government's original stance of maintaining more significant public sector control over critical financial institutions.
Concerns Over Privatization
The call for strike raised broader issues regarding the future of banking in India. Employees feared that privatization might lead to job losses as private entities typically aim to maximize profits, potentially at the expense of a stable workforce. Additionally, there were worries that privatized banks might prioritize profitability over public service, which could limit access to financial services for marginalized communities. The demonstration not only underscored the bank workers' discontent but also highlighted the necessity for a dialogue between the government and employees to address their grievances.
Government’s Response
The Indian government's push for privatization of public sector banks is part of a larger economic reform agenda aimed at increasing efficiency, enhancing competitiveness, and reducing the fiscal burden on the state. However, this initiative has faced stiff resistance not only from bank employees but also from various political parties and civil society groups. Critics argue that banking is a crucial sector for ensuring economic stability and that privatization could lead to a concentration of wealth and power in the hands of a few private owners, undermining the public interest.
The ongoing debate around bank privatization reflects broader discussions regarding the role of the state in key sectors, particularly in a rapidly changing global economy. The strike by bank employees serves as a reminder of the importance of safeguarding workers' rights and considering the social implications when formulating policies that could reshape the landscape of public services in India.
Hindutva and Political Context
The ascendancy of Narendra Modi as Prime Minister during the 2014 elections marked a significant moment for the Bhartiya Janata Party (BJP) and its Hindutva ideology. Throughout his campaign, Modi repeatedly expressed aspirations for a harmonious tenure devoid of communal violence, emphasizing unity across religious communities. Interestingly, the BJP sought to connect itself with historical figures such as B. R. Ambedkar, Subhas Chandra Bose, and Ram Manohar Lohia, leaders who had notably resisted the extremities of Hindu nationalism. Despite this, certain BJP leaders, particularly in states like Uttar Pradesh and the Northeastern regions of India, deployed charged Hindutva rhetoric that stoked communal tensions and aimed to consolidate Hindu voter bases.
In the wake of Modi’s election, several BJP-led state governments began enacting policies reminiscent of Hindutva principles. For instance, the Haryana government made significant revisions to its education policy to incorporate Hindu religious teachings into classroom curricula. Additionally, External Affairs Minister Sushma Swaraj proposed that the Bhagavad Gita should be considered India’s "national book." Although the central government under Modi did not overtly champion Hindutva policies, a notable rise in the activities of Hindu nationalist organizations occurred, highlighting a complex relationship between the state and these groups. Issues such as the controversial "Love Jihad" campaign, which targeted interfaith marriages and conversions, were brought to the forefront, despite a lack of substantive evidence to support the prevalence of such incidents. Reports of intimidation and coercion during alleged "reconversion" efforts further ignited national debates on religious freedom and minority rights.
Cultural Nationalism and Historical Appointments
In a move interpreted as aligning with the Hindutva philosophy, Modi appointed Yellapragada Sudershan Rao, a former member of the Rashtriya Swayamsevak Sangh (RSS), as the chairperson of the Indian Council of Historical Research (ICHR). This decision faced backlash from historians and intellectual circles, which alleged that Rao's appointment symbolized a broader trend of cultural nationalism within the Modi administration. Critics charged that this move paved the way for a rewriting of Indian history from a lens that favors Hindu narratives, potentially marginalizing diverse historical perspectives.
The legislative landscape under the Modi government also showcased shifts that raised concerns about communal inclusivity. On January 8, 2019, the Indian parliament passed a bill that provided residency and citizenship rights exclusively to non-Muslim immigrants from Bangladesh, Pakistan, and Afghanistan who entered India before 2014. This exclusionary measure drew sharp critiques from various quarters for promoting a discriminatory approach to citizenship that fundamentally contradicted the secular ethos enshrined in the Indian Constitution.
Controversies Surrounding Religious Sites and Violence
The controversial Ayodhya dispute culminated on August 6, 2019, when the Supreme Court ruled in favor of establishing a Ram Mandir on contested land, simultaneously allocating 5 acres for the construction of a mosque. This ruling was celebrated by Hindu nationalists as a validation of long-standing claims to the site, which they believe to be the birthplace of Lord Ram. Prime Minister Modi's attendance at the Bhoomipujan on August 5, 2020, not only marked him as the first prime minister to visit the Ram Janmabhoomi but also illustrated the intertwining of religious symbolism with state power, further energizing Hindutva supporters.
Under Modi's administration, larger dynamics of sociopolitical unrest have also been observed. Scholar Sumantra Bose pointed out that since Modi's re-election in May 2019, there has been a discernible increase in state-sanctioned mob violence targeting religious minorities, primarily Muslims. The use of bulldozers to demolish properties in predominantly Muslim areas has sparked significant controversy, with officials defending these actions as responses to illegal structures. However, these moves have drawn scrutiny as they often contravene court rulings, highlighting a concerning trend of aggrandizing Hindutva ideology at the expense of democratic principles and minority rights. Such developments emphasize a growing chasm in India's secular fabric, challenging the foundational ideals that the country was built upon.
Housing for All Initiative
In June 2015, Prime Minister Narendra Modi unveiled an ambitious initiative known as "Housing for All By 2022." This project aims to eradicate slums throughout India by constructing approximately 20 million affordable housing units targeted at the urban poor. The program emphasizes the necessity of adequate housing as a foundational element for improving living standards, enhancing dignity, and providing a stable environment for families. By focusing on urban areas, the government hopes to address rapid urbanization and its associated challenges, creating sustainable and inclusive cities. The program has garnered considerable attention for its scope and the potential transformation it offers to the living conditions of marginalized populations in urban settings.
Assistance for the Disabled
Modi's government has also placed significant emphasis on social welfare programs for vulnerable populations, particularly individuals with disabilities. Under the Assistance to Disabled Persons for Purchase/Fitting of Aids/Appliances (ADIP) scheme, a remarkable total of 4,718 camps were organized from 2014 to 2017, benefiting roughly 640,000 individuals. This marks a substantial increase compared to the mere 37 camps conducted in the previous two years, showcasing a commitment to inclusivity and support for those in need. The program aims to facilitate access to necessary aids and appliances, thereby improving the quality of life and empowering individuals with disabilities to participate more fully in society.
Economic Empowerment through Reservation
Acknowledging the socio-economic disparities in society, in 2019 the government passed a pivotal law granting a 10% reservation for the Economically Weaker Sections (EWS) in educational institutions and government jobs. This was a significant step towards promoting social justice and ensuring that economically disadvantaged individuals have equitable access to opportunities. The move reflects the government's broader vision of inclusive growth and aims to uplift those who have historically faced systemic barriers, allowing them to improve their socioeconomic standing.
LPG Access for Rural Women
Another significant social welfare initiative launched by Modi is the Pradhan Mantri Ujjwala Yojana (PMUY), which began on May 1, 2016. The program aims to distribute 50 million LPG connections to women from Below Poverty Line (BPL) families, thereby promoting cleaner cooking fuel and reducing health hazards associated with traditional cooking methods. The scheme was allocated a substantial budget of ₹800 billion (approximately US$9.6 billion) and saw immediate success, with 22 million connections distributed in its first year, exceeding the initial target of 15 million. By October 2017, the number reached 30 million, with a notable 44% of connections issued to families belonging to scheduled castes and scheduled tribes. This initiative not only facilitates better health and environmental conditions but also empowers women by relieving them of the burden of collecting firewood and enhancing their autonomy. As of December 2018, the total connections surpassed 58 million, and the initiative's reach was further expanded in the 2018 Union Budget to include 80 million poor households, demonstrating the government's commitment to ensuring clean cooking fuel access for all. The Ujjwala Yojana has led to a remarkable 56% increase in LPG consumption in 2019 compared to 2014, underscoring its impact on improving energy access and supporting healthier lifestyles.
Background of the Muslim Women Bill, 2017
The Muslim Women (Protection of Rights on Marriage) Bill, 2017, was a significant legislative move by the Bharatiya Janata Party (BJP) government, responding to growing concerns about the practice of instant triple talaq, also known as talaq-e-biddah. This practice allowed Muslim men to divorce their wives unilaterally by merely uttering "talaq" three times. The Supreme Court's landmark judgement in August 2017 declaring this form of divorce unconstitutional spurred the government to take action. Following this ruling, the government noted approximately 100 cases of instant triple talaq reported across the country, which further emphasized the urgent need for legislative intervention.
On 28 December 2017, the Lok Sabha passed the bill aimed at making instant triple talaq illegal and void in all forms, including verbal, written, and electronic communications like emails or messages sent via platforms such as WhatsApp and SMS. The legislation stipulated severe penalties for offenders, including significant jail time of up to three years for husbands who engaged in this practice. However, the bill faced opposition from several political parties, including the Rashtriya Janata Dal (RJD), All India Majlis-e-Ittehad-ul-Muslimeen (AIMIM), Biju Janata Dal (BJD), AIADMK, and All India Muslim League (AIML). These parties criticized the bill as arbitrary and flawed, leading to a contentious debate in Lok Sabha. The main opposition party, Congress, however, expressed its support for the legislation.
Further Developments and Legislative Process
The struggle to solidify this important piece of legislation continued after the initial passage in 2017, leading to re-introduction in the Lok Sabha on 21 June 2019. The bill demonstrated resilience and garnered further attention, ultimately being passed on 25 July 2019, followed by approval from the Rajya Sabha on 30 July 2019. The legislative process concluded with the assent of President Ram Nath Kovind on 31 July 2019, marking a historic step forward in protecting the rights of Muslim women. The Act took retrospective effect from 19 September 2018, ensuring that its provisions applied from that date.
Despite the positive legislative action, the bill's implementation revealed ongoing challenges. Five years after the Supreme Court's ruling, many women who were initially petitioners seeking justice remained in a difficult situation. These women often described their lives as those of "half-divorcees," reflecting the complicated reality they faced after being abandoned by their husbands. The persistence of social stigma and economic uncertainty continued to impact their lives, demonstrating that while the legal framework had changed, the societal changes necessary for full protection and empowerment of these women were still lagging behind. This underscores the enduring struggle for gender equality and the necessity for comprehensive support systems to protect the rights of women in these vulnerable situations.
Health Policy Evolution
Upon assuming office, Prime Minister Narendra Modi's administration adopted a different approach to healthcare compared to its predecessor. During his first year as Prime Minister, the government reduced healthcare spending, moving away from the previous Congress government’s initiatives that prioritized public health systems, particularly in combating child and maternal mortality rates. The introduction of the "New Health Policy" in January 2015 signified a shift in focus toward enhancing the role of private healthcare organizations without increasing overall government expenditure on health. This change was further illustrated in the budget allocations for the subsequent year, which saw a 15% reduction in healthcare funding. As part of this restructured health framework, vital public health programs, including the National Health Mission, suffered budget cuts that amounted to nearly a 25% decrease in funding compared to the previous year.
In a bid to tackle health concerns linked to lifestyle, Modi's government merged 15 national health programs, spanning areas such as tobacco control and elderly healthcare, into the broader National Health Mission without additional funding. While the Prime Minister initially appointed Dr. Harsh Vardhan, a staunch advocate for tobacco control, to head the Health Ministry, he was replaced in November 2015. The proposed stricter regulations on tobacco packaging faced delays largely driven by the influence of tobacco industry lobbyists, casting shadows on the government's commitment to public health.
Sanitation Initiatives
In tandem with efforts to reform healthcare policies, Modi also launched the Swachh Bharat Abhiyan, or "Clean India" campaign, on October 2, 2014, coinciding with Mahatma Gandhi’s birthday. This ambitious initiative aimed to eradicate open defecation, eliminate manual scavenging, and enhance waste management practices over five years, culminating in time for the 150th anniversary of Gandhi’s birth. The government committed to constructing 60 million toilets by 2019 to promote hygiene in rural areas. However, the construction of toilets faced criticism over transparency and allegations of corruption, and significant challenges remained regarding user uptake of these facilities. Despite these hurdles, Modi has consistently highlighted the significance of sanitation as a pillar of public health and proposed traditional health practices, such as yoga, as complementing these initiatives. Nonetheless, critical assessments, such as an article published in the medical journal Lancet, expressed concern that public health may have regressed during the early phase of his administration.
Efforts Toward Universal Healthcare
In pursuit of comprehensive healthcare reform, Modi's government introduced the draft policy for a universal healthcare system dubbed the National Health Assurance Mission. The plan aimed to ensure access to free medications, diagnostic services, and serious ailment insurance but faced delays in implementation due to budget constraints. A significant step toward realizing this vision came with the announcement of the Ayushman Bharat (National Health Protection Mission) during the 2018 Union Budget. Referred to as "ModiCare," this scheme is among the largest health protection initiatives globally, aiming to provide support for 10 crore families. Under this program, a new component was introduced by Finance Minister Arun Jaitley, offering health insurance coverage of ₹5 lakh per family annually. By October 2018, the scheme had benefitted over a lakh individuals, marking a notable effort by the Modi government to improve financial access to healthcare services amidst ongoing challenges.
Education and Skill Development
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) represents a significant initiative by the Government of India aimed at enhancing skill development and recognition standards for various vocational skills. With a robust financial commitment of ₹120 billion (approximately US$1.4 billion), the scheme was envisioned with an ambitious target of training 1 crore (10 million) Indian youth over a span of four years, from 2016 to 2020. By mid-July 2016, progress was evident with 17.93 lakh (1.79 million) candidates successfully trained, reflecting the program's initial traction. The core objective of PMKVY is to bolster employability skills among youth and daily wage earners by offering comprehensive training that enhances their working efficiency. Participants are incentivized through monetary rewards, with an average award of ₹8,000 (US$96) presented to those who complete the training successfully. For wage earners with existing skills, a recognition scheme has been instituted, providing awards ranging from ₹2,000 to ₹2,500. The initial phase set aside ₹15 billion (US$180 million) specifically for distribution to support these endeavors.
To ensure that the training provided is relevant and meets industry standards, the training programs have been meticulously curated based on the National Occupational Standards (NOS). This framework has been developed in collaboration with various Sector Skill Councils (SSC) that comprise industry experts. The National Skill Development Corporation (NSDC) has been appointed as the primary coordinating agency, tasked with overseeing the implementation of PMKVY and ensuring quality control across the board. This structured approach not only aims to enhance skill sets but also to cater to the evolving demands of various sectors, thereby increasing employability among the youth.
In parallel to skill development, the Government of India has also been proactive in reforming the educational landscape, evidenced by the formulation of a new education policy. Following the establishment of the previous education policies in 1968 and 1986, the government introduced the New Education Policy (NEP) after its election. This third iteration has been scrutinized for its ideological leanings, particularly its perceived ties to Hindutva and the influence of organizations like the RSS in its conceptualization. Unlike its predecessors, the NEP did not explicitly reference the ideals of socialism, secularism, and democracy, which had underpinned earlier policies. Instead, it focused on improving educational access for minority groups and those from economically disadvantaged backgrounds, particularly aiming to boost school enrollment rates within these segments. There was considerable discourse surrounding the potential removal of caste-based reservations in favor of an income-based system, a proposal that drew both supporters and criticism, with opponents arguing that it could perpetuate caste discrimination.
In July 2020, the government rolled out the National Education Policy 2020, which is aimed at fostering an India-centric education system designed to promote a transformative and equitable knowledge society. This forward-looking policy aspires to elevate India to the status of a global knowledge superpower by ensuring access to high-quality education for all segments of society. The NEP 2020 envisions an inclusive framework that adapts to the unique cultural and economic contexts of India while simultaneously targeting innovation and integration in the educational processes. As the implementation of these transformative policies continues, the focus remains on creating a skilled workforce capable of driving the economy and addressing the challenges of the future.
Foreign Policy Emphasis in Modi's Governance
During Narendra Modi's election campaign, foreign policy did not play a central role, yet it quickly became a significant aspect of his tenure as Prime Minister. Notably, Modi's swearing-in ceremony marked a diplomatic milestone as he invited leaders from all South Asian Association for Regional Cooperation (SAARC) countries—a first for an Indian prime minister. This gesture pointed towards Modi's intent to establish a more integrated regional framework, fostering partnerships while simultaneously signaling a shift in the diplomatic tone of India. Political analysts noted that Modi's portrayal as a strong, nationalist figure compelled him to adopt a more assertive foreign policy stance, particularly in response to cross-border terrorism, diverging from the previously adopted restraint.
While Modi's foreign policy drew upon the multialignment strategy established by the previous Congress government, it emphasized economic enhancement, security, and regional cooperation. The administration actively sought to attract foreign investments, particularly from East Asian nations, while bolstering military alliances with countries such as Japan and Australia, although a trilateral defense agreement remained elusive. Modi’s government also took steps to join significant multilateral organizations, including the Shanghai Cooperation Organisation (SCO) and the Asian Infrastructure Investment Bank, both of which exhibit China's growing influence in the region. The cooperation with the United States was fortified through the establishment of a "Joint Strategic Vision" for security in the Indian and Pacific Oceans, indicating a pivot towards collaborative engagements on issues of mutual interest.
In pursuit of these foreign policy objectives, Modi undertook numerous international trips shortly after taking office, visiting countries across various continents. Notable among these efforts was his attendance at foreign summits such as BRICS, ASEAN, and G20. Through initiatives like "Make in India" and "Digital India," he aimed to promote foreign investment and strengthen India's economic landscape. His early trips included significant diplomatic gestures towards neighboring nations like Nepal and Bhutan, where he pledged substantial financial aid and initiated cooperation frameworks. Modi also made significant overtures to the United States, repairing relations that had been strained due to past controversies related to his role in the Gujarat riots, and fostering an atmosphere conducive to heightened diplomatic and trade interactions.
The ratification of the land exchange deal with Bangladesh in 2015, initiated by Manmohan Singh's government but revitalized under Modi, exemplified a pragmatic approach to resolving historical disputes and enhancing bilateral ties. Meanwhile, the "Look East Policy," initially launched in 1991, was reinvigorated and rebranded as the "Act East Policy," catering to a more vibrant engagement with Southeast Asian nations. Agreements to improve connectivity with Myanmar highlighted a shift in focus from merely prioritizing security to fostering trade relationships. In 2018, Modi articulated a vision for the "Indo-Pacific region," underlining India's commitment to maintaining a "free, open, and inclusive" maritime environment. He encapsulated the essence of India's aspirations in the global arena through the framework of "three Ds"—democracy, demography, and demand—reflecting the potential of India as an emerging global player.
Defence Policy Overview
During the 2014 election campaign, Narendra Modi and the Bharatiya Janata Party (BJP) committed to reassessing India's nuclear weapons doctrine, particularly its longstanding no-first-use policy. This revisionist approach reflected a growing demand among Indian government and defence officials for a more assertive military posture on regional security. However, shortly after assuming office, Modi emphasized that no immediate changes would be made to this doctrine. The BJP's election manifesto also addressed critical issues such as illegal immigration, particularly in the northeastern states, and the government's approach towards insurgent groups. Modi indicated his willingness to provide refuge to Hindu migrants fleeing persecution in Bangladesh while stating that those who entered India with political motives would be repatriated. As a significant policy measure, the Modi government facilitated the legalization of residency for Hindu, Sikh, and Buddhist illegal immigrants from Pakistan and Bangladesh. Although framed as a humanitarian initiative, this policy faced opposition from various Assamese organizations.
In line with the previous Indian National Congress (INC) administration, Modi's government prioritized military spending, announcing an 11% increase in the military budget in 2015, surpassing the average growth during the Congress era. Demonstrating a proactive approach, the Modi administration successfully negotiated a peace agreement with the National Socialist Council of Nagaland (NSCM), a prominent insurgent group, in August 2015. This marked a milestone in the long-standing Naga insurgency, which had initially erupted in the 1950s. Despite a ceasefire agreement established in 1997, a formal peace accord had been elusive until Modi's administration intervened. Nonetheless, the revocation of a ceasefire with the opposing Khaplang faction of the NSCM led to increased violence, prompting Modi's government to launch a counter-terrorism raid into Myanmar, labeling the NSCM-K as a terrorist organization.
Modi has consistently highlighted Pakistan as a key sponsor of terrorism. His administration took significant measures to enhance the welfare of victims affected by terrorist attacks by increasing monetary compensation and extending this support to residents of Azad Kashmir. In September 2016, he urged the BRICS nations to dismantle the financial networks supporting terrorism. Following an attack in Uri, the Indian Army confirmed that a surgical strike was conducted on terrorist launch pads in Pakistan-occupied Kashmir (PoK). This strategic military operation was met with denial from Pakistan; however, subsequent releases of video evidence corroborated India's claims. The Modi government's assertiveness was evident during the 2017 standoff with China at Doklam, where Modi adopted a strict defence policy while strengthening relations with Bhutan.
The Modi administration's focus on defence intensified following the 2019 Pulwama attack, where a suicide bomber targeted a convoy of security personnel, resulting in the tragic deaths of 46 CRPF members. The attack, claimed by the Pakistan-based terrorist organization Jaish-e-Mohammed, prompted an immediate military response from India. On 26 February 2019, Indian Air Force aircraft conducted a precision strike on a Jaish-e-Mohammed training camp in Balakot, Pakistan, asserting a high casualty count among militants. Pakistan's military attempted to intercept the operation, but the Indian jets successfully executed their mission before returning.
Following the victory in the 2019 Lok Sabha elections, Modi's administration adopted a stern defence strategy against both China and Pakistan. This approach became increasingly relevant after the skirmishes in the Galwan Valley in June 2020, which resulted in the deaths of Indian soldiers. In a national address on the situation, Modi expressed a resolute message directed at China, underlining India's readiness to safeguard its sovereignty. The incident also led to heightened diplomatic communications between Indian and Chinese foreign ministers, with India's Jaishankar condemning China's actions as premeditated, reflecting the evolving complexities of India's defence policy amid regional tensions.
Environmental Policies Under Modi's Administration
Upon assuming office, Prime Minister Narendra Modi made notable alterations to the previous environmental governance structure in India. One of his first significant actions was renaming the "Ministry of Environment and Forests" to the "Ministry of Environment, Forests, and Climate Change." This rebranding signaled a shift in focus, yet it was accompanied by substantial budgetary reductions, with funding for the ministry slashed by over 50% in the initial budget. Furthermore, this new ministry progressively removed or diluted several established laws designed to safeguard the environment. Key regulatory measures, such as mandatory clearance from the National Board for Wildlife for projects near protected areas, were eliminated. Additionally, the government allowed certain projects to move forward without waiting for necessary environmental clearances, a decision perceived as prioritizing industrial growth over environmental protection.
Modi's government sought to further streamline processes by attempting to reconstitute the National Wildlife Board, specifically aiming to exclude representatives from non-governmental organizations (NGOs). However, this attempt was thwarted by the Supreme Court, which upheld the necessity for diverse representation in environmental governance. In tandem, the administration relaxed various industrial regulations, arguing that the existing framework fostered corruption rather than compliance. Instead, a government committee proposed that industrial owners could proactively report pollution levels, thereby accelerating project approvals without stringent checks. This regulatory rollback included significant changes such as diminishing oversight on small-scale mining ventures and abolishing the requirement for tribal council approvals for projects located in forested areas. Additionally, the lifting of a moratorium on new industrial activities in India's most polluted regions was particularly contentious, garnering both applause from business sectors and condemnation from environmentalists.
Under the preceding United Progressive Alliance (UPA) government, restrictions on field trials of Genetically Modified (GM) crops had been largely enforced due to farmer protests voicing concerns over crop safety and livelihood stability. However, Modi's administration gradually rescinded these restrictions. The government faced backlash for its actions against environmental groups, notably freezing bank accounts of organizations like Greenpeace under the premise of financial irregularities, although leaked documents suggested that the action was primarily due to Greenpeace's opposition to GM crops.
On the international stage, Modi showcased India's commitment to renewable energy by announcing the establishment of the International Solar Alliance (ISA) during the CoP21 Climate Conference on November 30, 2015. This initiative aimed to unite tropical countries in promoting solar energy usage, with the ISA's headquarters established in Gurgaon and backed financially by India for multiple years. Modi's advocacy for solar energy has earned him recognition on global platforms, culminating in his receipt of the United Nations Champions of the Earth award in 2018 for his environmental efforts.
Despite these initiatives, India's environmental standing faced scrutiny, highlighted by its position at the bottom of the Environmental Performance Index (EPI) in 2022, ranking lowest among 180 nations. This stark placement reveals ongoing concerns regarding environmental degradation, pollution, and the sustainability of natural resources, sparking debate about the balance between economic development and environmental stewardship under Modi's tenure.
Governance and Centralisation of Power
During his tenure, Narendra Modi's first year as Prime Minister marked a notable shift toward centralisation of power within the Indian government, a deviation from the more collaborative approaches of prior administrations. Modi took a hands-on role in the selection of civil servants, often issuing directives to them directly, bypassing their respective ministers. This change in governance structure not only streamlined decision-making processes but also led to significant unrest among senior officials, many of whom resigned in response to the increasing control exerted by the Prime Minister’s Office. The BJP-led government, despite holding a majority in the Lok Sabha, faced challenges in the Rajya Sabha, where they lacked a majority. This impediment prompted Modi to utilize ordinances, thereby enacting policies through executive orders and further consolidating authority within the executive branch.
Judicial independence also came under scrutiny during Modi's administration. In a notable incident, the Prime Minister's Office blocked Gopal Subramaniam's appointment to the Supreme Court, citing concerns over his past conduct in high-profile cases. Observers suggested that the underlying motive was tied to Subramaniam's association with an investigation that implicated BJP leaders. Furthermore, legislative changes were introduced that affected the appointment processes of judges, granting the government more influence while limiting the judiciary's autonomy. Such actions stirred debates about the balance of power between the executive and judiciary in the framework of Indian democracy.
Reforming Economic Governance
On December 31, 2014, Modi announced the dissolution of the Planning Commission, a central institution that had been integral to India's economic planning since independence. The Planning Commission was replaced by NITI Aayog—an initiative meant to foster cooperative federalism by involving state leaders in the decision-making process. However, unlike its predecessor, the new body lacks the authority to allocate funds, thus shifting economic power towards the central government and reducing the financial autonomy previously enjoyed by individual states. Critics argued that the Planning Commission had become inefficient over time, inhibiting growth, but many also recognized its historical role in advancing social welfare initiatives since the liberalization of the 1990s.
In a bid to stimulate business growth, the Modi administration undertook several significant deregulations to reduce bureaucratic red tape, simplifying permit and inspection processes that had long hindered entrepreneurial activities. Additionally, a reform agenda aimed at streamlining the Indian Administrative Service was initiated, intending to enhance governmental efficiency and responsiveness. These reforms were part of Modi's broader economic vision, which sought to create a more business-friendly environment and attract investments.
Impact on Civil Society and Dissent
Modi's government adopted a more assertive approach towards civil society organizations, conducting extensive investigations into numerous entities under the premise that their activities were obstructing economic progress. This led to heightened scrutiny of international NGOs, including well-known organizations like Médecins Sans Frontières, which faced significant pressure from authorities. Such actions, including the filing of sedition cases against critics, stirred concerns regarding the erosion of democratic freedoms and raised parallels to the contentious political climate under former Prime Minister Indira Gandhi.
Moreover, the use of laws like the Unlawful Activities (Prevention) Act (UAPA) has been critiqued for being employed to silence dissent and target activists, consequently leading to an atmosphere of intimidation among those exercising their right to criticize the government. As Modi’s government navigated its first year, these controversies created an atmosphere of unrest within the Bharatiya Janata Party and beyond, suggesting a key tension between governance and civil liberties.
Engagement with the Public
Amidst the politically charged atmosphere, Modi initiated a monthly radio broadcast titled “Mann ki Baat” on October 3, 2014, which sought to connect with the Indian public directly. Through this program, he addressed various issues affecting citizens’ lives, aiming to foster two-way communication between the government and the populace. This initiative highlighted Modi's commitment to establishing a rapport with the people, offering a platform for his administration to promote its policies while simultaneously encouraging feedback from listeners. The program has since become a hallmark of Modi's governance style, emblematic of his desire to engage directly with citizens while projecting a vision for a unified and progressive India.
Repealing Obsolete Laws
During the first three years of Narendra Modi's tenure as Prime Minister, a significant legislative initiative was undertaken to modernize India's legal framework by repealing approximately 1,200 obsolete laws that had lingered since British colonial rule. This notable feat starkly contrasts with the collective 1,301 such laws repealed by previous governments over a span of 64 years. The efforts were formalized through a series of legislative instruments, including the Repealing and Amending Acts of 2015, 2016, 2017, and their second variants. This proactive approach aimed not only to streamline the legislative process but also to eliminate archaic laws that no longer served a purpose in contemporary society.
Among the pivotal British-era laws that were highlighted for repeal included the Indian Penal Code, the Code of Criminal Procedure, and the Indian Evidence Act. While the legislative changes initiated by the Modi government sought to clear the legal landscape, they also introduced new laws that drew significant criticism from various quarters. These new legislative frameworks have often been criticized for creating ambiguities surrounding critical definitions such as sedition and terrorism, effectively bolstering the government's capabilities to curb dissent and limit freedoms of expression. The resultant legal interpretations have raised concerns among civil rights advocates, who argue that the modifications pose risks to democratic processes and individual liberties.
Furthermore, the amendments brought forth substantial changes to procedural law. The reforms have reportedly made it increasingly difficult for individuals to secure bail, thereby infringing on the presumption of innocence. Additionally, changes to the framework surrounding plea bargaining have narrowed the possibilities for defendants to engage in meaningful negotiations with prosecution, which presents challenges in seeking justice. The provisions empowering law enforcement to invade digital privacy, confiscate properties pre-trial, and initiate investigations sans formal complaints have drawn accusations of overreach, suggesting a shift towards heightened state surveillance and control over citizens' rights. Critics worry that these measures not only undermine the foundations of a fair judicial process but also disproportionately disadvantage defendants, making the balance of justice skewed against the average individual while enhancing the prosecutor's position in court proceedings.
As these legislative changes continue to unfold, the implications for India's democracy, civil liberties, and the rule of law remain a contentious and evolving discourse in both legal and public spheres. The government's ambition to modernize has been met with scrutiny, suggesting that the era of reform requires careful consideration of human rights and due process to ensure that the objectives of justice and fairness are upheld.
IT Policy Initiatives
Under the leadership of Prime Minister Narendra Modi, the Digital India programme was introduced with an ambitious vision of transforming India into a digitally empowered society and knowledge economy. This initiative aims to provide government services electronically, thereby enhancing accessibility and efficiency. A critical aspect of this programme is the development of infrastructure that will ensure high-speed internet access even in rural and remote areas. By bridging the digital divide, the government is committed to integrating technology into the everyday lives of every citizen.
In a significant step towards enhancing connectivity, the programme has identified 400 railway stations across the nation to be equipped with Wi-Fi technology. This initiative not only facilitates better communication and access to information for travelers but also fosters an environment conducive to digital literacy. Alongside connectivity projects, there is a focus on fostering the local manufacturing of electronic goods through favorable policies that stimulate domestic production.
Moreover, the 2017 Union Budget of India marked a pivotal moment for digital transactions by exempting various technologies such as Point of Sale (POS) machines, scanners, fingerprint readers, iris scanners, and micro ATMs from custom duties. This move is expected to encourage the adoption of cashless transactions and promote the growth of the digital economy. The focus on reducing the cost of technology is indicative of the government's commitment to making digital solution accessible to a larger segment of the population.
The impact of these initiatives is reflected in the surge of internet penetration in India, which increased impressively from 20 percent in 2014 to 28.7 percent in 2016. Such growth not only signifies greater access to information and resources but also underlines the potential for e-governance, e-commerce, and overall digital empowerment. The Digital India programme is a large-scale effort that continues to evolve, aiming for comprehensive socio-economic development through technology and digital infrastructure.
Unnat Bharat Abhiyan Overview
Unnat Bharat Abhiyan is an initiative launched by the Government of India, aiming to promote sustainable rural development through community engagement and technological intervention. The program specifically focuses on empowering neighboring communities by identifying their challenges and working collaboratively to develop solutions that are tailored to their needs. This initiative embodies the spirit of inclusive growth, ensuring that rural areas benefit from the advancements and innovations available in urban settings.
Engaging with Communities
The core of Unnat Bharat Abhiyan lies in fostering a participatory approach where local communities are actively involved in the decision-making process. By encouraging dialogue and collaboration between local populations and various stakeholders, including educational institutions and government organizations, the initiative seeks to build a sense of ownership among residents regarding their development. This engagement not only helps in identifying issues but also in finding sustainable solutions that are culturally and regionally relevant.
Focus on Technology for Upliftment
At the heart of Unnat Bharat Abhiyan is the pivotal role that technology plays in enhancing livelihoods and improving the quality of life in rural communities. The initiative promotes the use of modern technologies, such as digital tools, agricultural innovations, and sustainable practices, to address specific challenges faced by these communities. For instance, enhancing agricultural productivity through precision farming or improving access to education through e-learning solutions are some examples of how technology can be leveraged for substantial impact.
Success Stories and Impact
Numerous success stories have emerged from the implementation of Unnat Bharat Abhiyan, demonstrating its effectiveness in uplifting rural communities. Various pilot projects have showcased improvements in areas such as health care, education, sanitation, and economic development. These success narratives are vital in proving the concept that by equipping local populations with the necessary tools and knowledge, sustainable progress can be achieved, ensuring that communities do not merely survive but thrive.
Future Directions
As Unnat Bharat Abhiyan continues to evolve, the focus will remain on expanding its outreach and strengthening partnerships with various stakeholders. The collaboration between academic institutions, NGOs, government bodies, and local entrepreneurs has the potential to drive innovative solutions forward. By embracing a more holistic approach, the initiative aspires to create resilient communities that are equipped to tackle their inherent challenges, paving the way for long-term rural development in India.
Democratic Backsliding: An Overview
Democratic backsliding refers to the gradual decline of democratic norms and practices, where a functioning democracy begins to show autocratic tendencies. This process can manifest in various ways, including the erosion of civil liberties, the undermining of institutional checks and balances, and the stifling of dissent. Since Prime Minister Narendra Modi assumed office in 2014, numerous studies conducted by various non-governmental organizations have documented a noticeable downturn in India's democracy indices. As a result, India is increasingly perceived as entering a phase of "electoral autocracy," where the formal mechanisms of democracy persist, yet are controlled in a manner that limits genuine political pluralism.
In March 2021, the Swedish organization International Institute for Democracy and Electoral Assistance notably categorized India as an "electoral autocracy." This characterization is grounded in systematic observations of the political climate in the country, where dissenting voices are often silenced and government power is exercised with growing impunity. These trends have raised significant concerns among political analysts and human rights advocates who fear that the shrinking democratic space could lead to long-term consequences for governance and civil society in India.
Critics argue that the democratic backsliding observed in India is largely propelled by the leadership of PM Modi and the ruling Bharatiya Janata Party (BJP), which is often associated with Hindu nationalism. As elements of national identity and religion become intertwined in governance, critics contend that the inclusivity that characterized India's democracy is being compromised. Policies and rhetoric advancing Hindu nationalism have fueled tensions among religious minorities, and actions perceived as undermining the judicial independence or media freedom have been scrutinized. This deterioration of democratic fabric not only affects how politics operates in the country but also raises questions about the future of democratic governance in India amidst a growing trend of authoritarianism worldwide.
As these developments unfold, it remains crucial for the global community and domestic stakeholders to advocate for the preservation of democratic values, ensuring that all citizens can enjoy the rights and freedoms guaranteed to them. The situation continues to call for a robust public discourse about democracy's health in India and the necessity of fostering an environment conducive to fair and transparent political engagement for all.
Statistics
Over the past decade, India has experienced a noticeable decline in multiple global freedom indices, reflecting growing concerns regarding civil liberties and democratic practices within the nation. Notably, in 2020, a series of reports indicated that India had fallen in rankings across several important indices, including the Human Freedom Index, Global Economic Freedom Index, Internet Freedom Index, and the Human Development Report. These declining metrics indicate challenges in areas ranging from economic autonomy to the protection of individual rights.
One significant area of concern is press freedom, where India has witnessed a dramatic decline. In the Press Freedom Index published by Reporters Without Borders, India's ranking dropped from 133rd out of 180 countries in 2016 to a troubling 161st position in 2023. This downturn raises alarms about the increasing challenges faced by journalists and media organizations in the country, leading to fears regarding censorship and the stifling of free expression.
Furthermore, India's position in the Democracy Index published by the Economist Intelligence Unit (EIU) reflects a similar trend. In 2021, India ranked 46th out of 165 independent countries and two territories. This ranking exemplifies the tension between the country's status as the world's largest democracy and the actual state of democratic governance. Critics argue that these declines in various indices are symptomatic of broader systemic issues, including increased authoritarianism, intolerance toward dissent, and challenges to the rule of law. Collectively, these statistics underscore the importance of addressing the underlying factors contributing to the erosion of freedoms in India to ensure the country's continued commitment to democratic principles and human rights.
Democratic Backsliding in India
In recent years, significant concerns have emerged regarding the backsliding of democracy in India under the leadership of Prime Minister Narendra Modi and the Bharatiya Janata Party (BJP). An analysis by the international think-tank Chatham House has identified a multitude of factors contributing to this trend. Prominent among these are the government's control over the media, various forms of corruption, and the concentration of power within the ruling party. These elements are raising alarms that India could be mirroring the political landscapes observed in countries like Turkey and Russia, where democratic frameworks have been compromised in favor of populist and authoritarian rule.
The BJP's approach to governance, while ambitious in its developmental goals, has led to increasing polarization within society. This polarization is manifested through divisive politics and communal tensions, which ultimately weaken the democratic fabric of the nation. As political leaders often exploit societal divisions for electoral gain, the erosion of trust in the state’s institutions becomes evident. Citizens are left questioning the integrity of judicial systems and legislative processes that are foundational to democracy. This degradation not only stifles meaningful public discourse but further distances the populace from their government, leading to disillusionment with the democratic process.
Moreover, the implications of such backsliding are profound and far-reaching. The undermining of the rule of law and the encroachment on civil liberties can result in heightened social unrest, diminished civic engagement, and a waning of faith in democratic institutions. As political power consolidates in the hands of a few, the space for dissenting voices shrinks, making it increasingly difficult for citizens to hold their government accountable. Overall, the trajectory of India under the current regime raises significant questions about the future of its democracy and the fundamental principles that sustain it.
Suppression of Dissent
Under the premiership of Narendra Modi, there has been a noticeable trend of silencing dissenting voices through various forms of state-sponsored intimidation and harassment. Critics of Modi and his party, the Bharatiya Janata Party (BJP), have frequently faced repercussions, including legal action, tax raids, and surveillance. This systemic approach aims to stifle criticism and limit the free flow of information that is crucial for a functioning democracy. The public's ability to evaluate governmental performance is thus severely compromised, as they are deprived of the necessary tools to hold leaders accountable for their decisions and policies.
Rise in Sedition Cases
The timeframe between 2010 and 2021 witnessed a staggering 28% rise in sedition cases in India, reflecting the increasingly strained relationship between the state and its citizens. Notably, 96% of these sedition cases were initiated after Modi came to power in 2014, indicating a marked escalation in the government's response to criticism. The clampdown on dissent extends beyond legal measures; media outlets have also faced pressure to align their coverage with the government's narrative. Studies, such as those examining RepublicTV from 2017 to 2020, have found a consistent bias in favor of the Modi administration, amplifying its message while diminishing opposing viewpoints. This environment compromises the integrity of journalism, as influential businessmen like Mukesh Ambani, who have close ties to Modi, exert control over major media outlets that reach an estimated 800 million viewers.
Judicial Manipulation
The impact of Modi's regime is not confined to media control alone; it also extends to the judicial system. Despite India's historical commitment to an independent judiciary, there have been concerns regarding the manipulation of the Supreme Court and its functions. This raises alarms about effective checks and balances that are essential for a democratic framework. The executive branch has leveraged its powers to introduce and fast-track legislation that can diminish the judiciary's role, subtly altering the foundational balance of power enshrined in the Constitution. Amendments can be made to accommodate this increased executive power, thereby further entrenching an environment where dissent is quickly quashed and the leadership is rarely held accountable.
Consequences for Democracy
The overarching consequence of these actions is a palpable democratic decline in India. The suppression of critical voices and the manipulation of media and judicial institutions create an ecosystem where the public's opinions are shaped predominantly by government propaganda. Lacking access to diverse perspectives and critical analyses, citizens find it increasingly challenging to make informed political decisions. This erosion of democratic norms poses a serious risk to the political landscape of India, potentially leading to long-term ramifications that could hinder the country's democratic processes and civil liberties.
Evaluation against Democratic Backsliding
The issue of democratic backsliding in India has sparked intense debate, particularly under the premiership of Narendra Modi. Despite evidence suggesting a decline in democratic practices, some scholars argue that such concerns may not be as significant as portrayed, primarily due to constitutional checks and balances that remain intact. The evolution of political coalitions in India, notably the National Democratic Alliance (NDA) formed between 1998 and 2004, created a political landscape where the distribution of executive authority was more widespread. This dilution of power among various political entities ensured that no single faction could impose its will unilaterally, thus fostering a more collaborative approach to governance. Consequently, institutions like the judiciary, the Election Commission, and the Comptroller and Auditor General have retained a degree of autonomy, which, in turn, cultivates a more liberal democratic environment and enhances civic engagement.
The resilience of the Indian Constitution plays a pivotal role in sustaining democratic principles in the country. Key provisions, particularly Articles 14 to 18, underscore the commitment to equality and justice for all citizens. Despite periods of political turmoil, including the authoritarian rule during Indira Gandhi’s tenure, these articles persist in safeguarding fundamental rights. The Constitution's framework provides citizens with opportunities to seek justice and equity, ensuring that democratic ideals are continually championed. This legal foundation suggests that claims of democratic regression must be scrutinized in light of the substantive constitutional protections still in effect.
Furthermore, the cultural and social dynamics within India today present a complex picture. According to journalist Akhilesh Pillalamarri, the prevailing attitudes towards speech, individual expression, and dissent do not necessarily signal an impending crisis of democracy but rather reflect deeper social norms that may be illiberal. These norms can influence public discourse and shape perceptions of authority and criticism, complicating the landscape of democratic engagement. Thus, while concerns about authoritarian leanings are valid, it is crucial to recognize that the essence of democracy in India is still undergirded by robust constitutional safeguards and a history of collective governance that resists totalitarian impulses.
Instrumentalization of Investigative Agencies
Under the premiership of Narendra Modi, there has been a growing concern regarding the politicization of central investigative agencies, particularly the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI). Many observers argue that these agencies have been instrumentalized to target political opponents rather than to uphold law and order. Reports suggest that the Modi government utilizes these investigative bodies to gather intelligence on the vulnerabilities of rival political leaders, subsequently employing tactics such as intimidation and raids to silence dissent. An incident reported wherein Income Tax officers arrived in a vehicle bearing BJP stickers provides a stark illustration of this alleged partisanship.
Moreover, the government's approach to suppressing political opposition can sometimes take escalated forms, such as house arrests or imprisonment. Prominent instances include the treatment of politicians like Nara Lokesh of the TDP and former finance minister P. Chidambaram, who faced severe restrictions that limited their ability to mobilize support or participate in protests. The current scenario has drawn parallels with the Emergency era under Indira Gandhi, during which income tax raids were similarly weaponized against political adversaries, showcasing a worrying trend of authoritarian tactics being revived in contemporary Indian politics.
Trends of Favoritism and Political Defection
A concerning pattern has emerged wherein cases against politicians who switch allegiance to the ruling Bharatiya Janata Party (BJP) have been dropped, raising questions about the fairness of the judicial process. Notable examples include Himanta Biswa Sarma, against whom charges related to the Saradha scam were extinguished following his entry into the BJP. Other politicians like Ajit Pawar, Mukul Roy, Y.S. Chowdary, and Harshvardhan Patil have also experienced similar reprieves after defecting to the ruling party. These instances create an impression of a selective application of justice, where the law appears to bend for those who align with the ruling establishment.
The timing of raids on opposition leaders frequently aligns with critical electoral periods or politically sensitive events, further fueling allegations of strategic manipulation. The statistics shared by the Union government reveal a dramatic rise in the number of cases registered under the Prevention of Money Laundering Act since Modi took office, with only a minuscule number leading to convictions. Out of 5,422 cases registered, a mere 23 individuals were convicted, translating to a conviction rate of less than 0.5%. This raises serious concerns not just about the efficacy of the legal system but also about its potential exploitation for political purposes.
Impact on Political Landscape
The manner in which the ruling party has approached political dissent, specifically through the alleged misuse of investigative agencies, has created a climate of fear among opposition members. According to reports, about 95% of politicians booked, arrested, or questioned by the CBI during Modi's first eight years in office were from the opposition. Such a disproportionate targeting of rival political figures invites skepticism about the integrity of the ruling party's governance methods.
BJP leaders reportedly take pride in their perceived immunity from investigations, highlighting the internal dynamics of the party, where threats of raids and investigations loom large over potential dissenters within their ranks. This behavior not only challenges the fundamental principles of democracy but also raises alarms about the potential erosion of political freedoms and the integrity of democratic institutions in India under Modi's leadership. The implications of these practices can have lasting effects on India's democratic fabric, leading to increased polarization and a detrimental chilling effect on political engagement and dissent.
Targeting Independent Media
Under the premiership of Narendra Modi, there has been a significant crackdown on independent media and journalists in India. This trend escalated following critical coverage of the government's handling of major issues, particularly the COVID-19 pandemic. Notably, the offices of Dainik Bhaskar, a prominent Hindi newspaper, faced raids conducted by the Income Tax department just months after it published revealing reports on the government's pandemic response. Similarly, the BBC India offices were raided shortly after they aired a documentary scrutinizing Modi's involvement during the 2002 Gujarat riots, underscoring a worrying pattern of targeting journalists who challenge the narrative promoted by the government.
The crackdown has not been limited to high-profile media organizations like Dainik Bhaskar and the BBC; various other media outlets have faced unwanted scrutiny as well. This includes Bennett Coleman and Company Limited, India Today Group, Kashmir Times, and newer digital platforms like The Quint and The News Minute. Such actions raise significant concerns regarding press freedom in India, whereby rising journalism bans tend to align with the government’s narrative, limiting the diversity of viewpoints accessible to the public.
Moreover, individual journalists have also faced severe repercussions for their reporting, reflecting an increasingly hostile environment for investigative journalism. Sidheeq Kappan, a journalist covering the highly sensitive Hathras gang rape and murder case, was incarcerated for 850 days under the rigorous Unlawful Activities (Prevention) Act (UAPA). Other journalists, like Manash Baruah from Guwahati, reported being summoned by the National Investigation Agency (NIA) and pressured to sever communication with activist Akhil Gogoi, highlighting the intimidation faced by those who cover dissenting narratives. During the farmers' protests, similar intimidation tactics were evident, as the NIA summoned Gurpatwant Singh Pannun for his reporting that diverged from mainstream media portrayals, further emphasizing the chilling effect of government crackdowns on journalistic freedom.
This systematic targeting of journalists and media organizations not only impacts the individuals directly involved but also has broader implications for democracy in India. A free and independent press plays a crucial role in holding the powerful accountable, enabling public discourse, and underpinning democratic values. The ongoing pressures faced by the media under Modi's government pose significant risks to these democratic principles, making it imperative for civil society to advocate for the protection of press freedom and journalistic integrity amidst such oppressive measures.
Extension of Tenure for Investigative Agencies
The tenure of Sanjay Kumar Mishra, the Director of the Enforcement Directorate (ED), has been a focal point of contention in the Modi government’s approach to investigative agencies. Initially appointed for a two-year term, Mishra was set to conclude his tenure in November 2020. However, the government opted to extend his tenure for an additional year, allowing him to remain in office until November 2021. This move catalyzed significant debate surrounding the autonomy of India's investigative bodies, particularly the ED and the Central Bureau of Investigation (CBI).
In September 2021, the Supreme Court intervened, directing the central government to refrain from granting any further extensions for Mishra after the completion of his term. In response to legal challenges and public criticism, the government enacted two ordinances aimed at countering the judicial directive, thus allowing for the extension of the directors of both the ED and CBI for an additional three years following their initial two-year period. Consequently, this legislative maneuver resulted in Mishra's tenure being extended through November 2022. Critics voiced concerns that these actions represent a systematic erosion of the independence of key investigative entities in India, raising alarms about the potential for political interference in law enforcement.
On 8 May 2023, the Supreme Court was once again engaged in a discussion regarding Mishra’s extended tenure. During the proceedings, K.V. Viswanathan, serving as the court's amicus curiae, declared the extensions granted to Mishra as "invalid" and advocated for the repeal of the legislative changes instituted by the government, asserting that they could jeopardize the democratic fabric of the nation. Viswanathan's observations underscored the ongoing scrutiny regarding the government's involvement in the operational autonomy of investigative agencies, highlighting the importance of maintaining impartiality in law enforcement to safeguard democracy. The case continues to draw attention, raising critical questions about governance, accountability, and the rule of law in India.
Suppression of Data
The Modi administration has faced significant criticism for its management and release of crucial statistical data, particularly regarding employment and socio-economic issues in India. In 2019, the government notably delayed the release of unemployment data, which was initially approved by the National Statistical Commission (NSC) in December 2018. This delay prompted the resignation of two NSC members who were protesting against the government's apparent attempts to control or manipulate economic indicators ahead of a critical election season. The data was ultimately made public in May 2019, after the general elections, leading many to question the integrity and transparency of the government's statistical practices.
Moreover, there have been grave concerns about the handling of sensitive information regarding farmer suicides. The data from 2016 was not released until three years later, raising alarm among social scientists and activists who argue that timely reporting on such issues is essential for effective policymaking and intervention. Additionally, prior to the 2019 elections, the government refrained from publishing various key statistics, including consumer expenditure, GDP growth rates, incidents of lynching, and caste census data from 2011. This pattern of withholding information has been viewed as an effort to craft a favorable narrative about the government's performance while the country faced pressing economic challenges.
The government's approach to data collection and dissemination has also changed significantly, with the National Crime Records Bureau (NCRB) data from 2017 being withheld. Furthermore, the discontinuation of the Labour Bureau's quarterly enterprise survey and the Employment-Unemployment Survey reflects a shift towards new methodologies that have attracted criticism. Instead of comprehensive surveys that assess unemployment rates accurately, the administration has suggested that it will rely on data from provident funds to calculate unemployment figures. Critics argue that this method is inadequate and does not capture the full scope of employment issues in India, undermining the country's statistical credibility. The overall trend of data suppression raises important questions about transparency, accountability, and the impact of such tactics on public trust in governmental institutions.
COVID-19 Pandemic Impact and Vaccine Policy
During the second wave of the COVID-19 pandemic, which peaked in April 2021, the Indian government, led by Prime Minister Narendra Modi, faced immense pressure to manage the crisis effectively. In response to the urgent need for vaccines, the government rolled out a new vaccination policy that allowed private manufacturers like Serum Institute of India and Bharat Biotech to set their prices. This decision inadvertently resulted in substantial profit margins for these companies, making vaccine doses distributed through private hospitals prohibitively expensive for many working-class families in India. As a consequence of this pricing strategy, access to the vaccines became uneven, highlighting significant socio-economic disparities in the vaccination rollout.
Additionally, the operational aspect of the vaccination campaign further alienated segments of the population. The requirement to book vaccination slots online served as a barrier for many Indians lacking smartphones or reliable internet access. This digital divide hampered the ability of certain demographics, particularly the elderly and rural populations, to get vaccinated in a timely manner, raising concerns about equitable access to health services during a critical public health crisis.
Estimates regarding the actual death toll of COVID-19 in India have garnered significant attention from various health organizations. Reports from reputable sources—including The Lancet and the World Health Organization—indicate that the country may have underreported its COVID-19 death figures by a factor of five to ten. Such discrepancies not only reflect challenges in data collection but also underscore the severity of the pandemic's impact in India.
As the vaccination campaign progressed, notable achievements were recorded. By January 30, 2022, India had administered about 1.7 billion doses of vaccines, with over 720 million individuals fully vaccinated. This milestone demonstrated a significant mobilization of resources in the face of the pandemic. Furthermore, a 2022 study published in The Lancet Infectious Diseases journal indicated that vaccination efforts in India saved over 4.2 million lives in 2021 alone. These statistics served as a testament to the critical role that vaccines played in controlling the spread and impact of COVID-19 within the country, despite the challenges faced in the rollout process.
The challenges and successes of India's vaccination campaign highlight the complexities of managing public health initiatives during a global pandemic. It also raises important questions about healthcare accessibility, data accuracy, and the need for inclusive policies that ensure equitable distribution of vital medical resources. As India continues to navigate the aftereffects of COVID-19, these lessons will be crucial for shaping future health responses.