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The Modi Effect: Welfare Schemes over Freebies

Introduction

The 2024 Indian General Elections witnessed a riveting contest between the National Democratic Alliance (NDA) led by Prime Minister Narendra Modi and the opposition coalition INDIA. As the electorate navigated the promises and performances of both sides, a nuanced mandate emerged – one that endorsed PM Modi's developmental agenda while also signaling a call for further progress. The results underscored the electorate's discernment in balancing continuity with the need for change.


The NDA won 293 seats in the recently concluded Lok Sabha elections (Source - NDTV)


The Campaign Trail

On one side of the political spectrum, the NDA campaign centered around PM Modi's track record over the past decade, emphasizing the transformative impact of his welfare schemes and policies aimed at uplifting the lives of India's underprivileged. Modi's rallies resonated with promises to "make life easier" through continued support for housing, free rations, healthcare, and farmer assistance programs like the Pradhan Mantri Kisan Samman Nidhi. The NDA's narrative highlighted tangible achievements and a commitment to sustained progress.


In contrast, the INDIA coalition, spearheaded by the Congress party, sought to capitalize on the prevailing economic challenges of inflation and unemployment during Modi Ji's tenure. Their manifesto included ambitious promises of direct cash transfers, such as Rs 1 lakh for every poor family, a legal guarantee of minimum support prices (MSP), and a comprehensive wealth redistribution plan based on socio-economic surveys. The opposition's campaign focused on addressing immediate economic concerns through redistributive policies.


Voter Sentiment

Despite the allure of the INDIA coalition's grand promises of free schemes and cash handouts, a significant segment of the electorate favored the continuity of PM Modi's policies, granting victory to the NDA. This outcome suggests that voters recognized and endorsed the developmental measures implemented during Modi Ji's 10-year rule, which had a tangible impact on improving the lives of millions.


However, the NDA's win was not as decisive as they had anticipated, particularly in key states like Uttar Pradesh and Rajasthan. This nuanced result indicated that while the electorate appreciated the achievements of Modi's welfare initiatives, they also harbored expectations for further progress and course correction on issues like unemployment and inflation.


The Impact of PM Modi's Transformative Welfare Schemes

The success of the NDA's campaign can be attributed, in part, to the widespread support garnered from beneficiaries of PM Modi's flagship welfare schemes. The construction of permanent houses for four crore poor families, providing shelter, basic amenities, and enhanced living standards, emerged as a major achievement. Beneficiaries of this initiative, approximately 20 crore people, experienced a significant improvement in their quality of life and efficiency, naturally inclining their support towards the BJP.


Another impactful scheme, the Pradhan Mantri Ujjwala Yojana, provided LPG gas connections to 10 crore women, liberating them from traditional cooking methods and improving their health and living standards. The construction of toilets under the Swachh Bharat Mission initiated a social revolution, particularly benefiting women who were freed from the indignities of open defecation. These initiatives directly addressed long-standing issues faced by India's underprivileged, garnering widespread support for the BJP.


Furthermore, the BJP government's efforts to connect nearly the entire country with tap water and achieve 100 percent electricity coverage ensured basic amenities reached all households, contributing to their popularity among rural and urban voters alike. Economic support initiatives like the provision of free ration to about 80 crore people and the Rs 6,000 annual assistance to farmers under the Pradhan Mantri Kisan Samman Nidhi also resonated with a significant portion of the electorate.


The Rejection of Cash Distribution Schemes

In contrast to the Modi government's welfare-focused approach, which prioritized long-term development and infrastructural improvements, the Congress party's promises of direct cash transfers failed to resonate as strongly with voters. The public's skepticism towards such schemes was evident in the 2019 elections when the Congress's pledge of Rs 72,000 annually to every poor family resulted in a meager 52 seats.


In 2024, despite an increased promise of Rs 1 lakh per poor family and extensive publicity, voters remained doubtful about the feasibility and sustainability of such a cash distribution scheme. 


PM Modi with the BJP manifesto; Rahul Gandhi with the Congress manifesto. (PTI)


Although the Congress improved its tally from 52 to nearly 100 seats, it still fell well short of the majority needed to form a government. The public's rejection of cash distribution schemes and their trust in the Modi government's social welfare programs highlight the maturity of Indian democracy and its voters. The sustained support for initiatives like the construction of four crore houses, the Pradhan Mantri Ujjwala Yojana, and the Pradhan Mantri Kisan Samman Nidhi underscores a preference for tangible, long-term improvements over immediate cash handouts. This shift indicates a discerning electorate that values sustainable development and comprehensive welfare over short-term monetary gains.


Priorities of the New Government  

As India sets its sights on becoming a developed nation by 2047, the new government faces significant challenges and opportunities. The country's GDP has surged from $2 trillion to almost $4 trillion over the past decade, propelling India from the 10th largest economy to the 5th largest. However, income disparity remains a pressing issue, with around 12 crore individuals still suffering from multidimensional poverty as of 2023, despite the Modi government uplifting 25 crore people from extreme poverty.


Fiscal prudence has enabled the government to ramp up capital investment, leading to extensive infrastructure development across the country. This has had a positive impact on reducing logistics costs and improving the lives of the masses by facilitating easier access to essential services and economic opportunities. Additionally, India's emergence as a global leader in online transactions, facilitated by technological advancements, has driven financial inclusion and convenience for millions. The government's success in fostering innovation is evident in the dramatic increase in patents granted, from a mere 4,227 in 2014 to an impressive 1.03 lakh in 2024. This surge in innovation holds immense potential for driving economic growth and job creation. However, India's reliance on foreign countries for manufacturing remains a concern, necessitating a stronger push towards self-reliance through the Aatmanirbhar Bharat policy.


Generating employment opportunities for the country's burgeoning population is crucial for sustaining economic growth and reducing poverty. The advent of AI, automation, and robotics presents both challenges and opportunities, disrupting traditional employment sectors like manufacturing, BPOs, and even high-skilled software engineering. The government must strike a delicate balance, strategically limiting machine and AI usage in areas where human labor can be more effectively employed, while also embracing technological advancements to remain competitive in the global market.


Furthermore, promoting rural industrialization and enhancing life in rural areas through the development of agriculture and allied activities is a vital strategy for inclusive growth. These efforts will not only diversify the rural economy but also help mitigate the pressures of urban migration, ensuring that the benefits of economic progress reach every corner of the nation. By focusing on rural development, India can achieve more balanced growth, reducing regional disparities and strengthening its agricultural backbone.


Conclusion

The 2024 Indian General Elections served as a testament to the electorate's discernment, endorsing the continuity of Modi's welfare-focused policies while also signaling a desire for further progress on key issues like unemployment and inflation. As the new government takes charge, it must navigate the complex landscape of economic development, social upliftment, and technological disruption, ensuring that India's growth is inclusive, sustainable, and equitable for all its citizens.


The road ahead is challenging, but the mandate from the people is clear: to build upon the foundations laid by the previous government while charting a course towards a prosperous, self-reliant, and technologically advanced nation. Achieving this delicate balance will require a concerted effort to foster innovation, promote domestic manufacturing, generate employment opportunities, and address income disparities. Ultimately, the success of the new government will be measured by its ability to translate India's economic might into tangible improvements in the lives of its citizens, particularly those in rural and underprivileged communities. By capitalizing on the momentum of the past decade while addressing persistent challenges, India can truly realize its aspiration of becoming a developed nation by 2047, where progress is shared equitably among all segments of society.


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