Need For India's Next Phase Of Development

June 10, 2026, marks a defining moment in India’s democratic and economic journey. Prime Minister Narendra Modi has become India’s longest-serving elected Prime Minister. For industry, it represents something more important: continuity of leadership, consistency of policy, and confidence in the direction of the Indian economy. They are the foundation on which investment, expansion, and enterprise are built.

From an industry perspective, the past twelve years have been among the most consequential in independent India. The Modi government has not only overseen one of the most ambitious infrastructure build-outs in the country’s history, but has also reshaped the policy architecture in ways that have made India a more integrated, more digitized, and more competitive economy.

A major turning point was the creation of a unified national market through GST. By reducing fragmented state-level barriers, GST enabled companies to streamline logistics and improve speed to market. Alongside GST, the Insolvency and Bankruptcy Code brought a long-overdue discipline to credit markets. It strengthened the lending ecosystem, improved the recovery process, and signalled that India was serious about addressing stressed assets through predictable rules.

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The second major pillar of this tenure has been infrastructure. Over the last twelve years, India has made extraordinary progress across roads, railways, ports, power, and digital connectivity. Highways have expanded at record pace, rail lines have been electrified, freight corridors have been operationalized, airports have multiplied, and renewable energy capacity has grown significantly. Lower logistics costs, faster cargo movement, better connectivity to smaller towns, and more reliable power make businesses competitive. They also make India more attractive to global supply chains searching for resilient alternatives.

This infrastructure push has also supported the government’s larger manufacturing ambition. Through production-linked incentive schemes and related policy initiatives, India has sought to encourage domestic production in strategic sectors such as electronics, semiconductors, pharmaceuticals, automobiles, renewable energy, and defense manufacturing. Industry has responded. New investments, both domestic and foreign, have flowed into sectors that were once seen as difficult to scale in India. The growth of electronics manufacturing, the rise of India as a major smartphone producer, and the entry of marquee semiconductor projects are evidence of a deeper shift. India is now increasingly being seen as a manufacturing and innovation destination.

Today companies are rethinking supply chains, diversifying sourcing strategies, and looking for stable jurisdictions where they can invest for the long term. India’s size, talent, democratic institutions, and reform momentum make it uniquely positioned in this environment. But positioning alone is not enough. What has helped under Prime Minister Modi is the signal that the government is prepared to act decisively, sustain reforms over time, and back policy intent with execution. For industry, that credibility is valuable. It lowers uncertainty and improves the case for long-term capital.

It is also important to recognize the broader effect of social and economic inclusion on industrial growth. Financial inclusion, direct benefit transfer systems, housing, sanitation, and healthcare initiatives have expanded the formal economy and improved household resilience. When more citizens are connected to banking, digital payments, welfare systems, and basic services, the economy becomes more efficient and more investable. This broader inclusion creates stronger demand, deepens the consumer market, and helps industry plan for scale with greater confidence.

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One of the most consequential transformations has been strengthening of India’s national security architecture, which has emerged as a critical pillar of the country’s economic rise. Through enhanced border management, modernization of the armed forces, greater defence preparedness, and a firm approach to safeguarding national interests, India has significantly reinforced both external security and internal stability. This secure and stable environment is indispensable for economic progress, and instilling confidence of industry and investors while making investments.

From the standpoint of a business, another critical element is policy continuity. Industry thrives when the rules are stable and the direction is clear. The advantage of a long and uninterrupted leadership run is that it allows reforms to mature. It gives investors time to respond. It allows public investment to translate into private investment. And it enables industry to think in terms of years and decades rather than just quarters.
At the same time, India’s industrial ambition is far larger than its current manufacturing share of GDP. The country still needs greater emphasis on research and development, design capabilities, advanced skills, and innovation-led production. The next phase of growth will require moving beyond assembly to higher-value manufacturing, beyond incremental reform to deeper ease of doing business improvements and moving beyond local to global.

That is where the future opportunity lies. The foundation has been built. The next stage is to scale it. India now has the chance to deepen industrial capacity, improve productivity, and become a trusted hub for advanced manufacturing and services. If that is done well, the vision of a Viksit Bharat will not remain aspirational. It will become measurable in jobs, exports, innovation, and competitiveness.

(Note: The author is the Vice President of FICCI and Managing Director of Dalmia Bharat Group. Views expressed are personal.)