Four years of Modi govt: What worked, what didn’t and what still can.

Four years of Modi govt: What worked, what didn’t and what still can.


On 26 May, Prime Minister Narendra Modi completes four years as the head of India’s first majority government since 1984.

While campaigning for the 2014 general elections, Modi’s Bharatiya Janata Party (BJP) had made a slew of promises to end the 10-year rule of the Congress-led United Progressive Alliance.

A corruption-free regime, 10 million new jobs a year and doubling farm incomes by 2022 were among those promises.


Goods and Services Tax: Although the landmark legislation that overhauled the country’s indirect tax regime had been in the works for more than a decade and a half, the Modi government does deserve credit for getting the GST implemented in July 2017.



Insolvency and Bankruptcy Code: The Modi government can pat itself on the back for implementing a comprehensive bankruptcy law, India’s own version of the Chapter 11 regulation in the US Bankruptcy Code.



Aggressive foreign policy: In March, the Foreign Policy magazine reported that, until then, Modi had made 35 foreign trips as prime minister, having visited 53 countries, rubbing shoulders with nearly all of the world’s top leaders.



Make in India /Startup India: The Modi government had promised to make India a global manufacturing hub catering to both the export and domestic markets.


Black money: On 8 November 2016, Modi banned the use of high-value notes, sucking 86% of the currency in circulation in one swoop, with the ostensible aim of delivering a body blow to black money hoarders.


Bad loans: This was a problem the Modi government inherited and promised to resolve. Bad debts—now at more than Rs 9 trillion—continue to weigh heavily not just on government-controlled banks but also on its fiscal health.


Agriculture: One of Modi’s key poll promises in 2014 was to double farm incomes by 2022. Instead, farm incomes have fallen in real terms, primarily on account of food price deflation and the breakdown in the cash-based rural economy in the wake of the November 2016 demonetisation.



Direct Tax Code: After GST, the Direct Tax Code is the other big tax reform that the Modi government is reportedly looking at implementing. News reports say a draft bill could be introduced in the upcoming monsoon session of parliament. The code could introduce new income tax slabs and cap the corporate tax at 25%.



Jobs: If the Modi government plays its cards well, this could well be its biggest trump card yet, even as four-fifths of its time in office is already gone. In 2014, during its election campaign, the government had promised to create 10 million jobs a year.