Last week, the Narendra Modi government celebrated its achievements during the first 100 days since its formation on 9 June. How different were they from similar celebrations held five years ago after it was sworn in for a second consecutive term on 30 May 2019? Essentially, these celebrations led to a listing of major achievements in the first 100 days. Comparing them, therefore, will tell you how the nature of policymaking and the focus of governance in the early days have changed between what is commonly referred to as Modi 2.0 and Modi 3.0.
On top of the list of achievements publicised by the Modi government in 2019 was its decision on 5 August to declare Article 370 of the Constitution inoperative, extending the application of all Indian laws to Jammu & Kashmir and, thereby, ending the special status the state was enjoying. Converting the state into two Union Territories was another decision taken on 6 August. This marked the fulfilment of a major political promise the Bharatiya Janata Party (BJP) had made before the general elections.
By the end of July 2019, the Modi government secured Parliament’s approval to the Muslim Women (Protection of Rights on Marriage) Bill, popularly known as the triple talaq Bill, which made oral divorce in one sitting illegal and a criminal offence. The Supreme Court had earlier declared such a procedure for divorce legally invalid. The Modi government’s decision to frame this law was opposed by many, but this was one of the promises of the BJP and its government fulfilled that within the first 100 days in office in its second term.
Three other legislative changes also figured in the 2019 list of achievements. On 1 August, amendments to the Insolvency and Bankruptcy Code (IBC) were passed by Parliament to strengthen provisions related to time limits for resolution of insolvency cases, specify the minimum payout to operational creditors in any resolution plan, and mandate how representatives of a group of financial credits, such as homebuyers, should vote in resolution cases. These were significant amendments to the IBC, which for the first time set a time limit for resolving insolvency for both companies and individuals.
The other two legislative changes for which the government took credit pertained to the banning of unregulated deposit schemes and laying down procedures for evicting unauthorised occupants of public premises, including government houses. Among the achievements were also the government’s action against fugitives and corruption in bureaucracy. About a dozen tax officials were made to quit and over 30 other tax department employees, charged with corruption cases, were dismissed. Finance Minister Nirmala Sitharaman’s first Budget presented on 5 July did get covered, but in a rather cursory way as the list referred mainly to the large-scale investments in infrastructure and the social sector, in addition to outlining measures to improve the ease of doing business.
In contrast, the achievements in the first 100 days of Modi 3.0, which were listed last week, focused largely on the initiatives of Sitharaman’s Budget for 2024-25, which was seen as maintaining “strong fiscal support for infrastructure over the next five years, while balancing other priorities and fiscal consolidation.” The list of other achievements included the launch of key infrastructure projects worth Rs 3 trillion, including the construction of a deep-sea port at Vadhavan in Maharashtra, the expansion of major road networks, airport upgrades, and the development of metro projects. Reducing corporation tax rates for foreign companies, the abolition of the angel tax to ignite innovation, the launch of a Rs 1,000-crore venture capital fund for space startups, the approval of a five-year scheme to accelerate the tech startup ecosystem, and the rollout of BioE3 policy to foster high-performance biomanufacturing were among the listed initiatives.
There were also other achievements that Modi 3.0 took credit for. These included enhanced credit guarantee coverage for women-owned micro, small and medium enterprises, the establishment of 14 technology centres, a new centralised pension payment system to help 7.8 million individuals withdraw pension from any bank, new schemes for exporters and strengthening state milk cooperatives with the National Dairy Development Board entering cooperation agreements with them.
Interestingly, Modi 3.0 took credit even for the enforcement of the three new criminal laws from 1 July (even though they were passed by the previous government in December 2023), the One Nation One Election system (even though the Cabinet approved it a day after the 100-day mark and the challenges of securing a Constitutional amendment appear formidable) and the rollout of the decennial Census “soon”. But there was hardly any celebration over the Cabinet’s approval for the Unified Pension Scheme for government employees on 24 August to address concerns over the National Pension System.
The differences between the first 100 days of Modi 2.0 and Modi 3.0 are quite stark. Apart from the passage of the Budget in 2024, the Modi government in its third term did not pass any major legislation. The Waqf (Amendment) Bill had to be referred to a joint parliamentary committee. The draft broadcasting services Bill appeared to have been withdrawn, as more internal deliberations followed. In contrast, the Modi government in its second term had passed several politically and economically significant legislative Bills.
The reason for the difference in the two governments’ legislative intent is the reduced strength of the BJP in Parliament after the general elections of 2024. That has subjected Modi 3.0 to political pressures of a coalition government. Thus, while Modi 2.0 went flat out with legislative changes, implementing its political agenda, Modi 3.0 is more focused on schemes and projects and less on its political goals.
Remember that this was not the BJP’s intent before the elections. So confident it was of returning to power with a clear majority on its own that even before the polls had begun, BJP leaders had instructed all the key central ministries to prepare a 100-day action plan for policies to be rolled out soon after the formation of the new government. But the enthusiasm over that action plan waned as the BJP could not muster a majority in the Lok Sabha on its own. It is now either shelving schemes like the lateral entry of private-sector professionals into government jobs or reviewing its stance on including caste surveys in the forthcoming Census, all because it has come under the pressures of coalition politics.
Going forward, it would be reasonable to assume that Modi 3.0 would be more focused on projects and schemes, which do not require any legislative change or which have the support of its coalition partners. An indication of this trajectory is evident from the way Modi 3.0 celebrated its first 100 days in office.
AK Bhattacharya @AshokAkaybee is the Editorial Director, Business Standard. Views are personal.