Prime Minister Narendra Modi’s third term begins with a major cabinet reshuffle, featuring 72 ministers, including 9 new inductees. This reorganization is aimed at rejuvenating the administration, addressing current challenges, and setting the stage for ambitious future goals.
Composition and Key Appointments
The new cabinet maintains a balance between experienced leaders and fresh faces. Key portfolios like Home Affairs, Defence, Finance, and External Affairs remain under senior BJP leaders. Amit Shah continues as Home Minister, Rajnath Singh as Defence Minister, Nirmala Sitharaman as Finance Minister, and S. Jaishankar as External Affairs Minister. New inclusions like Bhupender Yadav, Jyotiraditya Scindia, and Meenakshi Lekhi signal an infusion of new energy and perspectives into the cabinet.
Strategic Objectives and Policy Directions
Economic Growth and Reforms: The Modi 3.0 government is focused on making India a USD 5 trillion economy by 2027-28 and a developed nation by 2047. Key economic reforms include changes in income tax slabs to provide relief to the middle class and encourage more people to fall under the direct taxation system. Simplification of the Goods and Services Tax (GST) structure is also a priority, aiming to reduce the number of tax slabs and make compliance easier for businesses.
Digital Economy and Financial Inclusion: Expanding the reach of the Unified Payments Interface (UPI) is a significant goal. UPI has transformed digital payments in India, and the government aims to extend its footprint globally. The initiative to address fintech challenges includes regular interactions between regulators and industry leaders to resolve issues promptly.
Governance and Administrative Reforms
Strengthening Enforcement Agencies: The Modi administration plans to empower enforcement agencies to tackle corruption and large loan defaults more effectively. This includes drafting new laws to give more authority to these agencies and create a more transparent and investor-friendly environment. These measures aim to end policy paralysis and make India an attractive destination for Foreign Direct Investments (FDIs).
Infrastructure and Development Projects: Continuing with the momentum of infrastructure development, the government plans to invest heavily in building roads, railways, ports, and airports. The focus is on creating a seamless and efficient logistics network to boost economic activities across the country.
International Relations and Trade
Trade Agreements and Global Integration: The Modi government is keen on signing more free trade agreements to enhance India’s trade prospects. Recent efforts include an agreement with the European Free Trade Association, and there are plans to engage with other major economies to open new markets for Indian goods and services. Additionally, promoting the global adoption of UPI is part of the strategy to strengthen India’s digital footprint internationally.
Diplomatic Engagements: Strengthening diplomatic ties remains a priority. The government aims to build on existing relationships and explore new partnerships to enhance India’s geopolitical standing. This includes active participation in global forums and contributing to discussions on international issues like climate change, trade, and security.
Social and Welfare Initiatives
Healthcare and Education: The government plans to continue its focus on improving healthcare and education. Initiatives like Ayushman Bharat, which provides health insurance to millions of underprivileged citizens, and efforts to improve the quality and reach of education through schemes like the New Education Policy (NEP) will be pivotal. The focus will also be on digital education and vocational training to equip the youth with skills necessary for the future job market.
Conclusion
The Modi 3.0 cabinet is a blend of continuity and fresh perspectives, aimed at driving India’s economic and digital advancements while maintaining a strong stance against corruption. With strategic planning and focused policy implementations, the government is set to tackle the challenges of the coming term effectively. The administration’s focus on economic reforms, such as changes in income tax slabs and simplification of the GST structure, underscores its commitment to making India a USD 5 trillion economy by 2027-28. Expanding the reach of the Unified Payments Interface (UPI) and addressing fintech challenges highlight the government’s dedication to enhancing financial inclusion and digital transformation.
