One of Modi’s key ambitions for his third five-year term as Prime Minister is to grow the manufacturing sector as a share of gross value added (GVA). His ‘Make in India’ initiative forms a key part of the strategy to achieve this, aiming to attract foreign direct investment into 14 key sectors. However, the policy’s success has been debatable. While it is likely that there is a fresh push in Modi’s prospective third term, headwinds remain and there are clear areas for policy improvement such as reducing import tariffs.
Infrastructure development will form another key area of focus for Modi. In his first ten years as Prime Minister, he focussed on building roads and electrifying railways. These infrastructure targets were ambitious and often they were not achieved, but in attempting to reach them, there was often a significant acceleration in progress. In his third term it is likely that the focus shifts to producing more electric vehicles and developing infrastructure which will help India in its efforts to achieve net-zero by 2070.
Despite his popularity among Indian voters, Modi faces challenges in his prospective third term. Unemployment is the most prominent concern among Indian voters. Youth unemployment is high by historical standards and female labour force participation is low. Reforms to India’s outdated labour laws could help tackle these issues.