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4
Policy Initiatives Under the
Modi-Led Government
By Dezan Shira & Associates Delhi Office
Editor: Melissa Cyrill
India is projected to grow at 7.6 percent in 2017 on
the back of a range of structural reforms signalling
the commitment of the current government under
Prime Minister Narendra Modi to create a more
business friendly policy environment. Illustrating
this picture of rapid economic growth is the fact
that India’s GDP (US$ 2.30 trillion) recently surpassed
that of the UK (US$ 2.29 trillion) - when it was
forecast to overtake the UK economy only by 2020.
Corresponding to thegovernment’s reforms agenda,
various economic programs have been launched
over the last two years. The most important among
these initiatives are mentioned below.
Make in India
Launched on September 25, 2014 as PrimeMinister
Narendra Modi government’s flagship economic
program, Make in India, is designed to establish
India as a leading manufacturing hub. To achieve
this goal, Make in India actively encourages foreign
investments, relaxing the FDI policy for 25 focus
sectors. These include automobiles and auto
components, electronics and electrical machinery,
construction, renewable energy, mining, roads
and highways, textiles and garments, and health
and wellness, among others. The Department of
Industrial Policy and Promotion (DIPP) oversees
Source: World Bank
GDP growth in annual percentages
India
Brazil
Russia
China
South Africa
0
2
2
4
6
8
10
2010
2011
2012
2013
2014
2015
10.6
9.5
7.9
7.8
7.3
6.9
7.6
6.6
5.6
6.6
10.3
7.2
7.5
3.9
1.9
3.0
0.1
3.8
4.5
4.3
3.5
1.3
0.7
3.7
3.0
3.3
2.2
2.3
1.6
1.3