Unmasking the Myth: Is PM Modi to Blame for India’s Lower GDP?

It is often a topic of debate to attribute India's lower GDP to Prime Minister Narendra Modi and his administration. However, the truth is more nuanced. The decline in India's GDP over the years is influenced by a mix of both natural factors and specific policy decisions. This article aims to dissect the misconceptions and present a more balanced view.

Debunking False Narratives

False claims linking the lower GDP to PM Modi and his policies are perpetuated by opposition forces and entities with vested interests. These narratives often ignore the broader economic context and the presence of factors beyond human control. The recent reports positioning India as the 5th largest and future 3rd largest economy in the world under PM Modi's leadership countered these myths with evidence of steady growth.

PM Modi's Tenure and Economic Outlook

Prime Minister Narendra Modi has been in power since 2014, and his second term has shown promising signs of growth. Despite various challenges, including the demonetization drive, his reign is expected to last for at least another decade. This extended tenure presents opportunities to rectify past errors and build a stronger economy for the future.

Economic Challenges and Policy Decisions

Many believe that the demonetization drive, implemented in 2016, led to a significant contraction in India's GDP. While the decision was aimed at curbing black money and corruption, implementation issues included inadequate planning and execution, which caused immediate hardships. Additionally, the introduction of the Goods and Services Tax (GST) in 2017 further contributed to economic pressures, leading to a rise in unemployment and retail distress.

In the turbulent period following demonetization, the GDP growth continued to decrease over the years. The graph illustrating the GDP trend from 2016 shows a consistent decline, which has drawn significant attention. The contraction in GDP was exacerbated by the global pandemic, with the first quarter of 2021 showing an astounding -24.4 decrease. While the pandemic played a crucial role in the economic downturn, it is essential to evaluate the government's policies that contributed to the pre-pandemic economic struggles.

Contributing Factors to GDP Contractions

The contraction in GDP is inherently linked to both the demonetization drive and the subsequent implementation of the GST. Poor planning and execution in both these initiatives led to a temporary slowdown. However, it is also crucial to recognize that the government has been working to rectify these issues and implement policies to stabilize and grow the economy.

Prime Minister Modi has acknowledged the need to improve and has initiated several reforms aimed at enhancing economic stability and development. These include measures to boost exports, attract foreign investment, and improve the ease of doing business in the country. The current administration is taking steps to cover up past failures and provide a robust foundation for future economic growth.

Conclusion

While PM Modi and his policies have been under scrutiny for the drop in India's GDP, it is important to understand that economic challenges are multi-faceted. The demonetization and GST reforms, although disruptive, were well-intentioned. As the country continues to navigate through global crises, such as the pandemic, it is vital to give credit where due and recognize the ongoing efforts to bolster the economy. PM Modi's tenure, for at least another decade, must focus on learning from past mistakes and implementing strategies to drive India towards a more robust and sustainable economic future.