Introduction
In a recent article, the Wall Street Journal in a rather self explanatory article commented about Prime Minister Modi’s years as a leader. It went on to talk about India’s democratic backsliding according to certain Western Government funded research groups, but kudos to them for being honest about one thing which was that despite their claims that India’s democracy is suffering under the current leadership, it is still a sought after country for investment from the investors of the very countries whose governments fund the research groups claiming all this.
As India, the world's largest democracy, approaches its pivotal general elections, the nation stands at a crossroads that will shape its trajectory for years to come. At the center of this defining moment is Prime Minister Narendra Modi, a visionary leader whose potential third term is not merely an option but a necessity for India's continued rise and the global community's collective well-being. Narendra Modi's leadership has propelled India onto an unprecedented path of progress, positioning the nation as a bastion of stability, economic dynamism, and inclusive development, while enhancing its stature on the global stage.
Key Highlights
Here are some of the key points that were mentioned in the article;
American businesses are attracted to an economy that is slated to grow 7.5% this year, according to the World Bank—more than three times the global pace. India, which had long frustrated foreign businesses with its sometimes chaotic political system, might have the world’s third-largest economy by the end of the decade.
Prime Minister Narendra Modi is expected to sail through general elections held once every five years, potentially surpassing his previous vote tally but worrying some observers. The Sweden-based V-Dem Institute, which had downgraded India to the status of “electoral autocracy” in 2018, expects Modi’s third term to lead to further deterioration. The U.S. government funded research group Freedom House, which rates India as partly-free, said the ruling BJP party has increasingly used government institutions to target political opponents.
With the rift between the U.S. and China widening, the U.S. State Department calls the relationship with India one of the most strategic and consequential of the 21st century. It has also made a tepid call to India’s government for “a fair, transparent and timely legal process” for imprisoned opposition leader Arvind Kejriwal and cited an opposition party’s allegations that its bank accounts were frozen. The statements were met with strong objections from New Delhi.
The bonhomie is clear when one looks at investment and trade figures. Foreign direct investment from the U.S. into India has risen substantially since Modi came to power in 2014, CEIC data shows, and is likely to keep growing. The U.S. is now India’s largest trading partner, ahead of China, with bilateral trade in goods and services between the allies likely crossing $200 billion in the financial year ended March 2023, according to India’s Ministry of Commerce and Industry.
That has doubled since 2014 when Modi took office and America’s ambassador to India has said there is potential for it to increase to $500 billion annually. During the 2023 financial year, the U.S. was the third-largest source of FDI into India accounting for almost 9% of total FDI equity inflows, according to India’s Ministry of External Affairs.
It is clear why many foreign investors are rooting for Modi. With his re-election, the government is likely to focus on more politically contentious reforms, including land acquisitions, labor reforms and further liberalization of FDI limits. An outright BJP victory should enable a sustained revival in private investments and lead to higher medium-term growth closer to about 7.0% to 7.5%, according to Nomura.
An unexpected win by the opposition coalition, on the other hand, could hurt governance in the near-term as a chaotic collection of parties tussles over issues of leadership, cabinet berths and a reflationary and populist government agenda.
For India to successfully meet the challenge of becoming a serious alternative to China and make good on its promises to American businesses such as Apple and possibly Tesla adopting the “China+1” policy, labor and land reforms are critical and so is continuous investment in infrastructure.
Former Prime Minister Manmohan Singh failed to break the legislative gridlock among lawmakers and pass economic reforms required to lure foreign capital and kick-start the economy during his second term. Morgan Stanley had lumped India among the “Fragile Five” emerging markets in 2013. Business confidence regularly took a hit and policy flip flops were common. For instance, U.K. telecom player Vodafone was slapped with billions of dollars in back taxes in 2012 after laws were changed.
Building on Transformative Reforms
Under Prime Minister Modi's tenure, India has undergone a transformative journey, marked by ambitious reforms and an unwavering commitment to nation-building. From the landmark Goods and Services Tax (GST) to the promotion of self-reliance (Atmanirbhar Bharat) and inclusive development (Sabka Saath Sabka Vikas), Modi's administration has consistently demonstrated its ability to navigate complex challenges and implement far-reaching initiatives that have propelled India into the ranks of the world's largest and fastest-growing economies.
A third term for PM Modi would ensure continuity and stability, essential for sustaining India's growth momentum and realizing the full benefits of these transformative reforms. Disruptions in governance or leadership transitions could potentially derail the progress achieved thus far, hindering India's ability to capitalize on the opportunities that lie ahead.
Strengthening Global Partnerships and Fostering Multilateralism
Prime Minister Modi's leadership has significantly elevated India's global standing, positioning the nation as a reliable partner and a symbol of progress on the world stage. Under his guidance, India has emerged as a key player in global affairs, advocating for a rules-based international order, promoting multilateralism, and strengthening ties with traditional and emerging partners alike.
PM Modi's diplomatic acumen and statesmanship were instrumental in achieving unanimous consensus at the recent G20 Summit in Delhi, solidifying India's role as a global leader and a champion of collective action on pressing issues such as climate change, terrorism, and economic cooperation. His commitment to fostering global partnerships and embracing a pluralistic worldview aligns with India's ancient philosophy of "Vasudhaiva Kutumbakam" (the world is one family), further underscoring the importance of his continued leadership.
Harnessing India's Demographic Dividend
One of the key strengths of India's growth story lies in its demographic dividend – a young, vibrant, and rapidly expanding population. Prime Minister Modi's vision for inclusive development aims to harness this potential by empowering the marginalized segments of society and ensuring access to essential services and opportunities for all.
Initiatives such as the Pradhan Mantri Jan Dhan Yojana, Swachh Bharat Abhiyan, Ujjwala Yojana, Har Ghar Jal, Pradhan Mantri Awas Yojana, and Ayushman Bharat have uplifted millions out of poverty fostering social inclusion and promoting dignity for the underprivileged. A third term for Modi would allow for the consolidation and expansion of these welfare programs, further unlocking India's human potential and driving inclusive growth.
Embracing Technology and Innovation
Prime Minister Modi's vision for a 'New India' encompasses a robust digital infrastructure and a thriving ecosystem of innovation. India's rapid digitization, fueled by initiatives such as the Digital India program, has transformed the nation into a hub for technological advancement, fostering entrepreneurship, and driving economic growth.
With over 750 million internet users and a burgeoning startup ecosystem, India is poised to capitalize on emerging technologies such as artificial intelligence (AI), fintech, and e-commerce. Modi's continued leadership would ensure a sustained focus on leveraging technology to improve governance, enhance service delivery, and drive economic development, positioning India as a global leader in the digital age.
Realizing the Vision of a Developed India by 2047
As India approaches its centennial year of independence in 2047, Prime Minister Narendra Modi's third term presents an unparalleled opportunity to realize the vision of a developed, prosperous, and influential nation on the global stage. His leadership has laid the foundation for India's transformation, and his continued guidance is crucial for navigating the challenges and capitalizing on the opportunities that lie ahead.
From economic reforms and infrastructure development to social empowerment and diplomatic engagement, Modi's third term would solidify India's position as a beacon of democracy, pluralism, and inclusive growth. It would further cement the nation's role as a global partner, committed to promoting welfare, stability, and prosperity worldwide. As the world's largest democracy exercises its democratic rights, the choice before the Indian electorate is clear: a vote for continuity, stability, and progress; a vote for Prime Minister Narendra Modi's third term and India's ascent as a leading global power in the 21st century.
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