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India’s Reform Slowdown Is a Myth

Behind claims of inaction lies a government focused on executing long-term changes rather than chasing short-term applause.

2 mins read
Prime Minister Modi with his top enablers in the government

As Prime Minister Modi has completed two full terms of five years each and has now crossed the eleventh year in his third term, a section of people has expressed the view that the Modi government is no longer keen on initiating reforms on various fronts and is slowing down. In support of this view, it has been said that during the last fourteen months, the only major reform initiative taken was the restructuring of the Goods and Services Tax (GST), with no other significant reform measures worth noting.

Obviously, such criticism has emerged because the critics have failed to take a holistic view of the entire spectrum of developments and activities that have been taking place over the past eleven years in India since Mr. Modi assumed office as Prime Minister.

It is true that during his first and second terms, several far-reaching and significant reform measures were introduced in multiple fields and in different directions. These diversified reforms not only focused on industrial and infrastructure sectors but also extended to areas with strong social implications, directly affecting the lives of the poor and those at the lowest strata of the economy. Steps were even taken to change lifestyle habits by launching programmes such as Yoga Day and the Clean India Campaign. Initiatives like constructing millions of houses for the poor and building toilets have significantly improved the quality of life for disadvantaged communities.

With regard to environmental issues, the Modi government committed at the Paris Climate Conference to achieve net-zero emissions by 2070. Toward this goal, several meaningful steps have been taken, such as blending ethanol with petrol, promoting electric vehicles, and boosting renewable energy. The government has also set an ambitious target of achieving 500 gigawatts of renewable energy capacity by 2030 and is making steady progress toward that goal.

Further, the opening of zero-balance bank accounts for the poor, the expansion of digitalization programmes, the introduction of Aadhaar, and the direct transfer of welfare funds into beneficiaries’ bank accounts are among the hallmark reform measures transforming the lifestyle of the common citizen in a positive way.

The positive impact of these reforms is already evident in several spheres and continues to grow. For example, India’s defence production reached an all-time high of ₹1.51 lakh crore in FY 2025. While public sector units continue to dominate defence production, the private sector’s contribution has steadily increased from 21% in FY 2024 to 23% in FY 2025.

To put it briefly, the Modi government’s efforts have resulted in India becoming the world’s fourth-largest economy, with the country’s GDP growth trends being widely applauded by international credit rating agencies.

Many of the reform measures introduced during Prime Minister Modi’s first two terms are still works in progress. This is inevitable, as most reforms were designed with long-term goals and carry great significance for the nation’s future progress. They need to be implemented carefully and consistently, with close monitoring, rather than rushing into new reforms prematurely.

Reform measures are not ends in themselves. Merely introducing reforms serves little purpose unless they are implemented effectively and within a time-bound framework. Rushing through new reforms without ensuring proper implementation would only lead to a waste of time and resources.

The so-called “lull” in reforms during Mr. Modi’s third term actually reflects the government’s prudent approach — focusing on implementing existing reforms in a systematic and time-bound manner before introducing additional ones.

While several reform measures have already been introduced, some fine-tuning will always be necessary based on experience and challenges encountered during implementation. Instead of criticizing the Modi government for not introducing more reforms, critics would sound more credible if they reviewed the actual progress and performance on the ground of the reforms already in place.

N.S.Venkataraman

N. S. Venkataraman is a trustee with the "Nandini Voice for the Deprived," a not-for-profit organization that aims to highlight the problems of downtrodden and deprived people and support their cause and to promote probity and ethical values in private and public life and to deliberate on socio-economic issues in a dispassionate and objective manner.

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