Modinomics at 76: Birthday cake, candles & numbers

Narendra Modi, India's Prime Minister, will turn 76 today, marking 12 years in office. During this time, the Indian economy has evolved from a vulnerable state to a global powerhouse, becoming the world's fourth-largest economy and consistently the fastest-growing major economy. This transformation has been remarkable, particularly considering the significant economic disruptions it has faced, such as the Covid pandemic, the Ukraine war, and the Iran conflict, all of which have contributed to tariff shocks.

Despite these challenges, the economy has expanded, with the development of a vast infrastructure network and a digital state that would have been unthinkable in 2014. However, the balance sheet is not without gaps, as private investment and job quality and quantity remain unfinished matters of Modi's economic project.

At its core, Modi's economic approach, known as "Modinomics," involves the Indian state building aggressively while leveraging technology to make markets, welfare, and government services function on a larger scale. This approach has led to the construction of highways, railways, airports, ports, and urban transport systems, as well as the implementation of Aadhaar, Jan Dhan, UPI, and direct benefit transfers.

Public capital expenditure has risen from approximately Rs 2 lakh crore in 2014-15 to Rs 12.2 lakh crore in 2026-27, while railway budgetary support has increased from around Rs 32,000 crore to Rs 2.78 lakh crore. National highways have grown from 91,287 km in FY14 to 1,46,566 km by March 2026, and the number of operational airports has more than doubled, reaching 165 by that time.

Modinomics is not merely a construction story, though. The government increasingly views infrastructure as an economic productivity tool. Initiatives like PM GatiShakti and the National Logistics Policy aim to integrate roads, railways, ports, and warehouses rather than building each piece in isolation. India's World Bank logistics ranking has improved from 54 in 2014 to 38 in 2023, a testament to the government's efforts to optimize logistics and infrastructure.

One of the most distinctive aspects of Modi's model is the digital layer that underpins the physical economy. In 2014, India had around 25 crore internet connections, but by 2025, that number had surged to over 100 crore. Average monthly data consumption per user increased from about 62 MB to 24 GB. UPI, the Unified Payments Interface, is the clearest symbol of this digital transformation.

By March 2026, UPI had processed 2,264 crore transactions worth Rs 29.53 lakh crore. The welfare state has also evolved alongside this digital revolution. Over 57 crore Jan Dhan accounts have been opened, and cumulative direct benefit transfers have surpassed Rs 49 lakh crore, potentially saving the government over Rs 4.3 lakh crore by eliminating duplicate and fake beneficiaries.