How India’s GDP doubled in a decade under Modi Raj

India has entered the new financial year with exuberant triumph of achieving the unimaginable. India doubled its GDP in a decade of Modi Raj. When PM Modi took charge of the country in 2014, India’s GDP was US$ 2.1 tn in FY2014. In a decade of Modi Raj India’s GDP has doubled to US$ 4.2 tn in FY 2025.

Chart 1: GDP at Constant Prices (in US$ tn)

This is a result of government’s progressive policies and implementation of reforms that focused on giving impetus to manufacturing sector, promoting exports, furthering digitalization. Along with this revolutionary reforms like implementation of Goods and Service Tax (GST) and massive push on capital expenditure in the infrastructure sector are the major reasons for the economic growth.

A deep dive into major factors that have driven the economic growth of the country highlight following key achievements:

1. A resilient agricultural sector driven with government interventions in form of higher MSP, direct benefit transfers, and other schemes, that furthered buoyancy of rural economy despite erratic climatic conditions.
2. Extremely encouraging performance of India’s corporate sector, that has delivered positively on parameters like business expansion, investments in the same business, backward and forward integration, and diversification by entering other businesses, and resultant employment generation.
3. Modi government formulated and effectively implemented a very facilitative framework for business through policies like Make in India, PLI, MSME loans etc.
4. Upliftment for the lower and economically weaker segments of the society through direct measures has elevated standard of living of poor and has helped in bringing out people out of poverty.
5. Extensive use of digital technology has brought down the cost of implementation of policies and schemes, reduced corruption and leakages, and ensured transparency.
6. Effective implementation of GST is the major factor in curbing unrecorded economic activities resulting in capturing more and more economic activities and bringing them within the net of organized economy.
7. The Government’s focus on bringing about fiscal discipline and prudential governance has helped in controlling fiscal deficit while spending more and more on capex.
8. Services sector contributed heavily to the growth of economy with exports of services being one of the major drivers of growth. Logistics and retail sectors saw exponential growth due to robust industrial and consumer demand.
9. India inherited a fragile economy with banks’ balance sheets shattered due to NPAs created by loans disbursed to wrong people during UPA tenure. In the Modi regime banking systems were made resilient and robust by implementing Insolvency and Bankruptcy Code (IBC) that helped in cleaning up balance sheets of banks. The healthy balance sheets of banks in turn resulted in faster credit growth.
10. Reforms reflected in form of increased global level confidence on India and its economy. This resulted in huge FDI inflows that enhanced investments in the country.

According to a report by SBI Research India’s per capita GDP at current prices stood at Rs 2.35 lakh and GDP at constant prices touched Rs. 1.33 lakhs in FY25. This is a decadal growth of 9.1 per cent, According to SBI Research, per capita GDP increased by 2.6 times in the decade of Modi’s Rule.

Chart 2: Per Capita Income (in Rs. Lakhs)

The Indian government has significantly ramped up infrastructure spending over the past decade, driven by initiatives like the National Infrastructure Pipeline (NIP), PM GatiShakti, and various sectoral programs.

Table 1: Sectoral Investments in Infrastructure in 10 Years

Exports growth was other story that helped in doubling the economy. The composition of foreign trade underwent a change with increased share of manufactured goods in total goods exports and increased share of value added services, due to setting up of numerous global capability centres of global companies. These have not only helped make the net export balance less negative but have also helped to improve the health of the current account balance.

Key Drivers: Petroleum products, gems, pharmaceuticals, and IT services led goods and services exports, respectively. Policies like the Production Linked Incentive (PLI) scheme and trade pacts (e.g., India-UAE FTA) fueled growth

Chart 3: India’s Total Exports (US$ bn)

This is how Prime Minister Modi during his 10 years of governance was able to double the GDP of the country.