‘Modinomics’ Basis of India’s Rapid Economic Growth, Says Defence Minister Rajnath Singh

Rajnath Singh Calls ‘Modinomics’ the Basis of Growth

Defence Minister Rajnath Singh on Wednesday said Prime Minister Narendra Modi’s economic vision, which he referred to as “Modinomics”, has laid the foundation for India’s rapid economic growth.

Addressing a press conference in Kolkata on September 16, Singh said India was moving steadily towards development and good governance. He attributed the country’s economic progress to an ecosystem that, in his view, allows India’s “brain power and manpower” to reach their potential.

What Does ‘Modinomics’ Refer To?

“Modinomics” is a term used to describe the economic approach associated with Prime Minister Narendra Modi’s governments.

The term has been used in different ways by supporters and critics of the Modi government. In the government’s broader economic narrative, it has been associated with reforms, infrastructure development, digital public infrastructure, manufacturing promotion, formalisation of the economy and efforts to improve the delivery of public services.

Modi himself has previously used the term while discussing economic reforms and described his approach as involving significant changes in the way the Indian economy is managed.

Singh Highlights Economic Reforms

Singh said the economic transformation during the Modi era was supported by reforms and improvements in governance.

According to his remarks, changes in regulation and administration have helped create an environment in which economic resources can be used more effectively.

The minister also pointed to public-fund delivery and governance systems as areas where the government believes technology and administrative reforms have improved implementation.

India’s Economic Growth in Recent Years

India has recorded strong economic growth in recent years, although growth rates have varied across financial years.

An analysis published in June 2026 noted that India's nominal GDP had roughly doubled over the previous decade, rising from around $2.1 trillion in 2015 to approximately $4 trillion. It also reported provisional real GDP growth of 7.7% for FY2025-26.

These figures provide the broader economic context in which Singh made his comments about the Modi government's economic approach.

Public Capital Expenditure Has Increased

One of the prominent features of the government's economic strategy has been increased public capital expenditure.

According to the June 2026 analysis, central government capital expenditure increased from roughly Rs 2 lakh crore in FY2014-15 to a budgeted Rs 12.2 lakh crore for FY2026-27.

Major infrastructure areas receiving investment include roads, railways, ports and waterways. The policy approach has been to use public investment to build infrastructure that can support wider private-sector economic activity.

Digital Infrastructure as an Economic Tool

Digital public infrastructure has also become an important part of India's economic policy framework.

Systems such as Aadhaar, the Unified Payments Interface (UPI) and direct benefit transfers have expanded the use of digital identity, payments and government-to-citizen transfers.

The June 2026 economic assessment described this digital infrastructure as an important factor in formalising economic activity and improving welfare delivery.

Manufacturing and ‘Atmanirbharta’ Push

Another major element of the government's economic strategy has been its emphasis on domestic manufacturing and self-reliance.

Initiatives such as Make in India, Production Linked Incentive (PLI) schemes and the broader “Aatmanirbhar Bharat” approach have sought to increase domestic production and attract investment in strategic industries.

According to the June 2026 analysis, electronics manufacturing has recorded significant expansion, with mobile-phone production and exports rising substantially between FY2020 and FY2025.

Defence Sector Also Highlighted

Singh, who heads the Defence Ministry, also highlighted India's expanding defence capabilities.

According to his remarks, India's defence exports have reached more than 100 countries. The statement was presented as an example of India's increasing capabilities in the defence-production sector.

India has increasingly focused on domestic defence manufacturing and exports as part of its broader push for self-reliance in strategic industries.

Governance and Delivery of Public Funds

Singh also emphasised governance as part of the economic-growth story.

He said improved regulation and governance have helped ensure that public funds reach their intended beneficiaries.

Digital systems have increasingly been used by governments for direct transfers and service delivery, reducing the need for intermediaries in several programmes.

The effectiveness and economic impact of individual schemes, however, remain subjects of broader policy and economic debate.

Private Investment Remains an Important Issue

While public investment has increased significantly, private investment remains an important component of India's long-term growth outlook.

The June 2026 economic analysis noted that private capital expenditure had not kept pace with the scale of government investment through much of the period.

For sustained growth, economists and policymakers continue to focus on whether improved infrastructure and policy measures can generate stronger private investment and employment.

Manufacturing Growth and Employment

The expansion of manufacturing has also raised questions about the scale and quality of job creation.

Government-linked industrial programmes have generated employment in sectors receiving incentives, but the relationship between higher manufacturing output and broad-based employment remains an important economic policy issue.

India's large working-age population means that employment generation remains closely connected with the country's long-term growth strategy.

Fiscal Consolidation and Government Spending

Fiscal management has also formed part of the economic discussion surrounding the Modi government's record.

The June 2026 analysis reported that the fiscal deficit had declined from pandemic-era levels above 9% of GDP to 4.4% in FY2025-26, with a 4.3% target for FY2026-27.

At the same time, public capital expenditure continued to receive significant allocations, reflecting the government's stated preference for investment-led spending.

Different Views on the Economic Model

The economic record of the Modi government has been subject to differing assessments.

Supporters point to higher infrastructure spending, digitalisation, manufacturing expansion and India's relatively strong growth rate as evidence of structural changes.

Critics and independent economic analysts have raised questions about employment generation, private investment, manufacturing's overall share of GDP and the distribution of economic gains.

These differences mean that “Modinomics” can refer both to a specific policy narrative and to a broader political debate over India's economic performance.

Rajnath Singh’s Broader Message

Singh's remarks in Kolkata linked economic development with governance, human capital and national capabilities.

He argued that the economic ecosystem created under Modi has allowed India's human resources and skills to contribute more effectively to national development.

His comments form part of the government's broader presentation of India's economic transformation under Modi's leadership.

India’s Growth Story Going Forward

India's future growth will depend on several factors, including private investment, productivity, employment, manufacturing competitiveness, infrastructure, exports and global economic conditions.

While government spending and digital infrastructure have expanded considerably, maintaining high growth over the long term will require continued investment across both public and private sectors.

The balance between growth, employment, fiscal sustainability and inclusive development will remain central to India's economic policy debate.

Bottom Line

Defence Minister Rajnath Singh has described “Modinomics” as the foundation of India's rapid economic growth, highlighting reforms, governance, infrastructure, digital systems and expanding defence capabilities. India's economy has recorded strong growth over the past decade, alongside a major increase in public capital expenditure and expansion of digital infrastructure. At the same time, questions around private investment, employment and the distribution of economic gains remain part of the wider debate over India's economic trajectory.