India’s Income Rise: Powered by PM Modi, led by the people

Modi AFP

By Pradeep Bhandari

India’s economic story is no longer just about GDP charts and fiscal math—it is being authored by the leadership of Prime Minister Narendra Modi and the aspirations of everyday Indians, especially the quiet revolution of the retail investor. In 2013, India had 2.1 crore demat accounts. By 2025, that number is projected to touch a staggering 18.5 crore.

Retail investor participation has grown from just 1 crore people to over 11 crore—an 11x jump in a decade. This revolution has unfolded under the stewardship of PM Modi, whose policies have empowered a digitally savvy, financially confident middle class.

Shift in financial saving towards equity

This is not merely a numerical surge—it is a mindset transformation catalyzed by Modi’s governance model. Indian households—once passive savers—are now active investors, taking ownership of national wealth creation and betting boldly on India’s future. Mutual fund (SIP) contributions touched a record ₹26,459 crore in December 2024. NSE alone added 84 lakh new accounts in FY25. This wave of financial inclusion and participation is built on Modi’s emphasis on trust, technology, and transparency—from Jan Dhan to the JAM trinity to Digital India, the ecosystem has been built for the people, by a leader who understands their aspirations.

This massive retail participation is not an accident—it is built on trust, technology, and transparency. A digitally empowered middle class is investing more because the system now works for them. This democratization of finance is a direct consequence of PM Narendra Modi’s focus on inclusion and accessibility—from Jan Dhan to JAM trinity to Digital India.

Expansion of the middle class

The transformation is also evident in how India’s economic demographics are evolving. According to the PRICE Income Report, the lower middle class has shrunk from 36.7 crore in 2015 to 32.7 crore in 2023. Meanwhile, the middle class expanded from 57.9 crore to 64.8 crore, and the upper middle class has more than doubled, from 13.5 crore to 28.2 crore in the same period. This upward mobility is not accidental—it is the outcome of targeted welfare, pro-growth reforms, and the enabling of aspirational India.

A recent survey by the National Bank for Agriculture and Rural Development (NABARD) underscores this transformation in rural India as well. The second All India Rural Financial Inclusion Survey (NAFIS) 2021–22 found that the average monthly income of rural households rose by 57.6% in just five years—from ₹8,059 in 2016–17 to ₹12,698 in 2021–22—reflecting a compound annual growth rate (CAGR) of 9.5%. This growth signifies the deep structural shifts taking place in India’s rural economy, driven by infrastructure, connectivity, credit access, and inclusive development.

Political stability and policy continuity undergird progress

At the heart of this shift lies political and policy stability. In an increasingly uncertain and fragmented world, Prime Minister Narendra Modi’s re-election for a historic third term is not just a political victory—it is a resounding endorsement of vision, stability, and delivery. As global incumbents crumble in the post-COVID churn, India has again placed its trust in decisive leadership.

This mandate—unprecedented in 50 years—is rooted in more than slogans. It is powered by performance.

Under PM Modi, India’s GDP is projected to double in 11 years, growing from $2.1 trillion in 2015 to $4.3 trillion in 2025, which will allow it to overtake Japan to become the 4th largest economy globally. According to NITI Aayog, India is poised to surpass Germany within the next three years. These are not dreams—they are projections backed by data, reforms, and discipline.

The IMF forecasts India to remain the fastest-growing major economy, with a projected growth rate of over 6% over the next two years—while economies like Germany flirt with stagnation. India is not riding temporary winds; it is charting its own course.

Positive changes in household financial behaviour

Household financial behavior is also maturing. According to Motilal Oswal, net household financial savings surged to 7.3% of GDP in H1 FY25—up from 3.7% the year before. The Reserve Bank of India confirms this trend, with liabilities like personal loans dropping from 6.9% to 4.7% of GDP. This shift reflects less debt-driven consumption and more conscious saving—a strong foundation for long-term resilience.

And this saving surge is not a drag—it is a growth catalyst. It enables government and private players to fund infrastructure, startups, and innovation using domestic capital. A nation that saves more, builds more—and builds faster.

India’s “Made in India” export ecosystem has also flourished, with exports up 37%. From pharmaceuticals to electronics, India is no longer just importing global goods—it is exporting credibility, scale, and innovation.

This economic deepening is the result of a decade of governance continuity and reform consistency. From GST to Direct Benefit Transfers (DBT), PLI schemes to digital public infrastructure, PM Modi has ensured that reforms outlast election cycles. Policy no longer resets every five years—it progresses.

That continuity builds confidence. Investors respond to predictability. Markets reward reform. And households participate when they see purpose-driven governance.

The impact is visible in real lives too. Over 25 crore people have been lifted out of poverty. Extreme poverty is now estimated to be under 1%. These aren’t just statistics—they are stories of transformation made possible by Jan Dhan accounts, Ujjwala Yojana, Ayushman Bharat, and rural infrastructure.

Per capita income has more than doubled, from ₹86,000 in 2014 to over ₹2 lakh in 2025. This rise is not confined to cities—semi-urban and rural India are powering forward, driven by aspirations matched with access.

This is what sets India apart in a world battling leadership fatigue and economic drift. PM Modi’s governance model has combined ambition with execution, global vision with grassroots delivery. From leading the G20 to building the world’s largest digital payments ecosystem, he has given India both direction and dignity.

In his third term, Modi is not just running a government—he is stewarding a national transformation. India is saving more, investing more, exporting more—and aspiring more than ever before.

The world sees it. The markets reflect it. And most importantly, the people have reaffirmed it.

At a time when many nations are choosing uncertainty, India has chosen continuity over chaos, stability over slogans, and growth over gridlock.

(Pradeep Bhandari is the National Spokesperson of the Bharatiya Janata Party.)

Views are personal and do not represent the stand of this publication.