How Modi-Era Reforms Transformed India into a Financial Powerhouse: Insights from Sitharaman

India’s economy has seen significant changes under Prime Minister Narendra Modi’s leadership in the past 11 years. Finance Minister Nirmala Sitharaman highlighted these transformations, emphasizing the shift from challenges to advantages for major sectors. This change has been crucial in positioning India as the fastest-growing major economy.

When Modi took office in 2014, India faced a difficult situation. It was listed among the “Fragile Five,” a group of economies vulnerable to financial crises. To combat this, the government focused on structural reforms. Key measures included the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Real Estate Regulation Authority (RERA). These reforms were designed to stabilize the economy and promote growth.

During the pandemic, initiatives like the Production Linked Incentive (PLI) Scheme and the Emergency Credit Line Guarantee Scheme (ECLGS) aimed to support small and medium-sized enterprises (MSMEs). Over time, these efforts helped bolster infrastructure, which had been overlooked before.

A noteworthy accomplishment in the last decade is the rise of digital payments, driven by the Unified Payments Interface (UPI). In the financial year 2025, UPI recorded over 185 billion transactions. The government has also seen a surge in entrepreneurial activity, with more than ₹33 lakh crore disbursed through MUDRA loans to over 53 million borrowers.

According to Commerce and Industry Minister Piyush Goyal, foreign direct investment (FDI) inflows have expanded significantly. They now come from 112 countries, up from 89 in 2013–14. This growth reflects not just favorable statistics but also a shift in global perceptions about India’s economic potential.

Experts highlight the importance of a well-structured governance model. By reducing regulatory burdens and enhancing public services, the government’s approach fosters trust among investors, which is critical for sustained economic growth.

To make this progress even clearer, recent data shows that India’s GDP growth is outpacing many other major economies, indicating a robust recovery from past setbacks. As the country navigates these complex changes, its ability to adapt and innovate will be vital for future success.

For more insights into India’s economic policies, you can check reports from the Reserve Bank of India or follow updates from the Ministry of Finance.

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