In the heart of New Delhi, recent declarations from Finance Minister Nirmala Sitharaman have shed light on a decade of transformative structural reforms under Prime Minister Narendra Modi’s regime. Over the past 11 years, these reforms have not only reshaped India’s economic landscape but have also positioned it as the fastest-growing major economy in the world.
According to Sitharaman, the changes implemented reflect a significant shift in India’s macroeconomic fundamentals. She emphasized the bolstering of the balance sheets across critical sectors such as banks, corporations, households, the government, and even the external sector. This holistic approach has been pivotal in anchoring India’s economic resurgence and creating a favorable environment for growth.
Looking back to 2014, when the Modi government first came into power, the country was grappling with the “Fragile Five” label—a term highlighting its vulnerable economic status. The foremost priority of the administration was to rejuvenate growth. Sitharaman highlights this urgent need for revitalization as the foundation from which subsequent reforms were born.
Among the notable changes were the introduction of the Goods and Services Tax (GST), the Insolvency and Bankruptcy Code (IBC), and the Real Estate Regulatory Authority (RERA). Each of these reforms targeted long-standing inefficiencies and aimed to streamline economic processes. During the challenging years of the pandemic, initiatives like the Production Linked Incentive (PLI) Scheme and the Emergency Credit Line Guarantee Scheme (ECLGS) were implemented to support creditworthy micro, small, and medium enterprises (MSMEs) as they navigated the stormy economic waters.
Sitharaman underscored the revival of infrastructure and asset creation as another significant achievement. These areas had been largely neglected in previous decades. By focusing on building robust infrastructure, the Modi government has made strides in laying the groundwork for future economic growth.
One of the standout successes of the last decade is the digital payment revolution spearheaded by the Unified Payments Interface (UPI). This initiative has led to staggering transaction volumes, reportedly exceeding 185 billion in the fiscal year 2025. In parallel, the MUDRA loan scheme has also demonstrated an enthusiastic entrepreneurial spirit, facilitating cumulative disbursements of over Rs 33 lakh crore to more than 53 crore loan accounts. This shows not just growth in numbers but an increasing trust in the governance and economic policies at play.
The finance minister’s comments were echoed by Commerce and Industry Minister Piyush Goyal, who brought attention to India’s increasingly favorable position for foreign direct investment (FDI). As of earlier this month, FDI inflows were recorded from 112 countries, a significant increase from 89 in the fiscal year 2013-14. This surge reflects not only India’s robust economic infrastructure but also the global community’s growing trust in its economic trajectory.
Sitharaman’s insights illustrate how, over the past 11 years, the Indian economy has transitioned from managing twin deficits to enjoying a significant advantage through strengthened balance sheets. This dynamic transformation is a testament to the comprehensive policy efforts spearheaded under PM Modi’s leadership.
In conclusion, the journey so far has been nothing short of remarkable. From governmental top-down initiatives to igniting grassroots entrepreneurialism, India is on a path defined by structural reform and fiscal responsibility. The narrative crafted by the Finance Minister encapsulates a decade of hard work, resilience, and visionary planning—all aimed at ensuring the country not only survives but thrives in an increasingly competitive global economic arena.
As we look ahead, the momentum created through these reforms promises to keep India’s economic engine running stronger than ever. The vision laid out by PM Modi and executed by his administration has set the stage for continued growth, making India a beacon of hope in the global economic landscape.
