Modi-nomics and the politics of institutional change in the Indian economy

Abstract

The term 'Modi-nomics' gained widespread publicity across India and resonated internationally during the Bharatiya Janata Party's (BJP) campaign for the 2014 general elections. Named after the BJP's star campaigner and then Prime Ministerial candidate, Narendra Modi, Modi-nomics refers to his success as Chief Minister in Gujarat, a state richer, with faster GDP growth, more jobs and industry than most other Indian states. The 2014 campaign promised that the 'Gujarat model' of clean government and economic competence, could be replicated across the country. In our paper we identify the promises and premises behind Modi-nomics. We take stock of claims and criticism, drawing on comparative development statistics to discuss a much lauded but also highly contested 'success' story. To assess whether Modi-nomics is guiding policy we draw upon Douglas North's new institutionalism. In addition, we use a sociological understanding of institutions to argue that a central component of Modi-nomics is to achieve economic change by altering perceptions and images as well as policy. However, Modinomics remains highly contested within India's domestic political arena and has unleashed other political entrepreneurs drawing on politics of entitlement (the Patel agitation) or religious sensibilities (the beef ban controversy). To gain resilience, Modi-nomics will have to combine ideational and institutional change and to reconcile the tensions arising in the process.

Who is more religious and ethical, Republicans, Democrats or others?

“…Moreover, study found that the win of far-right wing populist, Jair Bolsonaro in Brazil was due to his capacity in deploying religion to justifies his authoritarian and racism persona along with his proposed policies, which gained significant support from religious-conservative voters such as the Catholics and evangelicals (Byline, 2018). Similar case occurred in India with the win of Narendra Modi through Bharatiya Janata Party, which associated its politics with cultural nationalism and the pursuit of politics based on identity and religion (Schöttli & Pauli, 2016). These studies highlighted the facts that religion is inseparable for winning electoral politics and that it can be infused in proposed policies to appeal for religious voters.…”

Statecraft and Foreign Policy

“…Narlikar points to crucial domestic economic policy reforms that have been introduced under the Modi administration, such as the introduction of the Goods and Services Tax (GST), improvements regarding the access to healthcare, financial services like small loans and bank accounts, sanitation facilities and swifter government services. Given the projected promise of 'Modi-nomics' (Schottli & Pauli 2016), observers expected a more ambitious agenda in the realm of foreign economic policies. However, Narlikar (2022: 162) observes 'important continuities in the narrative that underpins India's negotiation behaviour, [which] are also reflected in its bargaining strategy and coalition formation.…”

Economic distress amidst political success: India’s economic policy under Modi, 2014-2019

“…In 2014, candidate Modi pledged to reform procedures of government. 111 The BJP promised a clearer and rational approach to policy making. Some important changes have nodded in this direction including the abolition of the separate railway budget and ending the distinction between plan and non-plan expenditure in the budget.…”