In just a few days, India is set to begin the world’s largest democratic election, with an estimated 960 million eligible voters. Prime Minister Narendra Modi is expected to win a rare third consecutive term. Under his leadership, India is positioning itself as a 21st-century economic powerhouse, offering an alternative to China for investors and businesses. The country has been successful in building healthy relationships with major economies and is actively attracting large companies to set up factories in the nation.
However, the reliability of economic data in India poses a challenge in evaluating the country’s progress. CNN has created five charts based on official sources to showcase India’s performance under Modi’s leadership since 2014. With an expanding economy that currently ranks as the world’s fifth largest, India is expected to continue growing at a rate of at least 6% annually. To become an economic superpower, the country would need to aim for growth rates of 8% or higher.
While India has made significant progress in infrastructure development, there are still challenges to raise its GDP per capita, which currently ranks low globally. The country is investing heavily in building roads, ports, airports, railways, and green energy projects to drive economic growth. Additionally, the government has introduced digital public infrastructure platforms like Aadhaar and UPI, which have improved services and reduced corruption, transforming lives and businesses in India.
India’s stock market has been experiencing record highs, surpassing $4 trillion in market value. Domestic investors have been driving this growth, with retail investors owning 9% of the equity market value and foreign investments expected to increase post-election. The Modi government is also focusing on attracting companies looking to diversify their supply chains away from China, offering incentives for manufacturing in 14 sectors, which has led to investments from top global firms like Apple and Tesla.
Despite these advancements, India faces challenges such as high unemployment rates, especially among the youth. The country’s large, youthful population has not fully benefited from economic opportunities, with educated youth facing higher unemployment rates compared to those with no formal education. Creating millions of jobs for the population remains a critical challenge for the government. Modi’s administration will need to address these issues to further boost economic growth and prosperity in India.
