As Prime Minister Narendra Modi embarks on his third term, let’s call it ‘Modi 3.0,’ expectations run high of transformative policies aimed at solidifying India’s position as an economic powerhouse. Modi’s letter to the nation after his 45-hour meditation in Kanyakumari suggests Modi 3.0 plans to hit the ground running. Here, in brief, is what we can expect:
Strengthening manufacturing will be on the radar with ‘Make in India 2.0’ that focuses on advanced manufacturing, including Industry 4.0 technologies such as artificial intelligence (AI), Internet of Things, robotics and big data.
We can also expect the development of specialized manufacturing clusters for sectors such as electronics, automobiles, textiles and pharmaceuticals to help enhance efficiency and develop specialized skills, apart from tax breaks, subsidies and facilities to attract investment, and expanded production-linked incentive (PLI) schemes to cover more industries, with a commitment to create new jobs.
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Boosting the economy will be done through infrastructure development by making more highways, airports, ports and logistical parks, and via the use of technology to improve quality and safety.
The National Infrastructure Pipeline (NIP) will get a renewed thrust, smart cities mission will be expanded to more urban areas and high-speed rail and highway links will be built to improve connectivity in Jammu and Kashmir, the Northeast and other remote areas.
Stronger defence preparedness will be on the agenda, done by focusing on modernization and the local production of aircraft, weaponry and other military hardware.
Financial sector reforms may be initiated by addressing non-performing assets and modernizing public sector banks. Digital transactions and fintech innovations will be promoted to improve financial inclusion and efficiency all the way to last-mile links.
Job creation will be promoted through skill development and vocational training, especially in futuristic areas including AI, robotics, machine learning, drones, chip manufacturing. The aim will be to enhance skill sets through the Skill India Mission in alignment with industry needs and also apprenticeship programmes that encourage private-public collaborations for training.
Support for micro, small and medium enterprises (MSMEs) will be stepped up by enabling easier access to credit and state incentives. Simultaneously, doing business will be eased by simplifying regulatory procedures and reducing bureaucratic hurdles.
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Economic diversification will drive GDP growth as the administration promotes sectors beyond traditional industries. Renewable energy, tourism and services will likely be in the spotlight and focus will be placed on developing tourism infrastructure, even as India is promoted as a global services hub.
Tax reforms to simplify tax structures can be expected, and maybe another corporate tax rate cut to attract investment.
Public expenditure, including on health, education and social infrastructure, would likely be stepped up to boost productivity.
Exports may be boosted through trade agreements and diplomacy, with new deals helping open up new markets, including bilateral and multilateral trade pacts with key partners such as the EU, Asean and African nations.
The centre may also strengthen export promotion councils to provide exporters with targeted support and market intelligence, apart from export incentives to boost export-oriented manufacturing through duty drawbacks, subsidies and other measures aimed at making Indian products globally competitive. Logistics and port infrastructure upgradation could reduce costs and raise export efficiency.
Inflation containment could see action by way of agricultural reforms, greater use of technology and supply chain improvements, especially by enhancing India’s cold storage capacity to reduce post-harvest losses, even as roles are played by food processing parks and market reforms. A strengthened National Agriculture Market (e-NAM) could offer farmers better price discovery.
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Energy and transport will be focus areas for energy efficiency and cost reduction. This goes with India’s RE drive.
Digital India 2.0 will make a mark by encompassing more areas and expanding e-governance for better efficiency and transparency. Broadband will likely reach every village. Innovation will be encouraged and also research and development.
The space sector will notch up new successes. We have a manned mission and new exploration programmes coming up. Commercial launches can also be expected to make gains in a lucrative global market.
Research grants and funding for scientific innovation would help create a vibrant base that allows thousands of startups to flourish. Expect more support from incubators, accelerators and venture capital.
Regulatory reforms could focus on streamlining regulations to enhance business competitiveness and the ease of living. India must further simplify procedures and reduce compliance burdens; labour reforms need to be implemented to create a flexible market that allows adjustments.
In a recent statement, Prime Minister Modi, while talking about his vision for India over a thousand-year span, said, “If you want to achieve big, then think big.”
We can expect his leadership to work at laying a solid foundation for a strong and developed country by 2047.