📷 Image: Wikimedia Commons / Europäische Kommission - Audiovisueller Dienst, CE
Business
Modi-era economic shifts: growth trends and reforms needed
✍️ CNBC TV18
🗓 08 Oct 2026, 06:09 AM
👁 10
An analysis of how India's economy has transformed under Prime Minister Narendra Modi and the key reforms experts say are still required.
Prime Minister Narendra Modi's tenure has seen a marked acceleration in India's economic performance, with GDP growth rates rising and foreign investment inflows reaching historic highs. Structural reforms such as the Goods and Services Tax (GST) and the Insolvency and Bankruptcy Code (IBC) have streamlined business operations and improved credit recovery.
Despite these gains, analysts point to lingering bottlenecks that could curb future momentum. The manufacturing sector still lags behind the services segment, and labour market rigidity hampers job creation. Infrastructure gaps, especially in logistics and power, remain a drag on competitiveness.
Experts argue that the next phase of reform must focus on deepening the capital market, simplifying land acquisition, and enhancing skill development to match industry needs. Strengthening fiscal prudence while expanding social safety nets is also seen as essential to sustain inclusive growth. The government’s policy agenda in the coming years will likely hinge on balancing these priorities to keep the economy on an upward trajectory.
Despite these gains, analysts point to lingering bottlenecks that could curb future momentum. The manufacturing sector still lags behind the services segment, and labour market rigidity hampers job creation. Infrastructure gaps, especially in logistics and power, remain a drag on competitiveness.
Experts argue that the next phase of reform must focus on deepening the capital market, simplifying land acquisition, and enhancing skill development to match industry needs. Strengthening fiscal prudence while expanding social safety nets is also seen as essential to sustain inclusive growth. The government’s policy agenda in the coming years will likely hinge on balancing these priorities to keep the economy on an upward trajectory.