10 Big-Bang Policy moves Modi Government made in 2024

The year 2024 marked a series of transformative policy decisions by the Narendra Modi government, which aimed at shaping India’s socio-economic, political, and environmental future. These major reforms span several sectors, from governance and digital infrastructure to sustainable development and job creation. Understanding these policies and their potential impact on India’s development is crucial for UPSC aspirants. This article delves into the 10 significant policy moves implemented by the Modi government in 2024, with a special focus on their implications for governance, economy, and India’s role on the global stage.

10 Big-Bang Policy moves Modi Government made in 2024

1. One Nation, One Election

The “One Nation, One Election” proposal is one of the boldest moves taken by the Modi government in 2024. The proposal aims to synchronize the elections for the Lok Sabha, state assemblies, and local bodies. This constitutional amendment, tabled in December 2024, would allow the government to hold simultaneous elections across the country.

Key Points:

• The proposal aims to reduce the frequency of elections, saving time, resources, and costs.
• It seeks to end the disruption of governance caused by frequent elections, enhancing the efficiency of government functioning.
• While supported by the Bharatiya Janata Party (BJP), opposition parties argue that it may marginalize regional issues and weaken smaller political parties.

2. RBI’s Directions for Microfinance Lending

In a move aimed at reforming microfinance institutions (MFIs), the Reserve Bank of India (RBI) deregulated the interest rate ceiling on loans offered by non-bank MFIs in March 2024. This was accompanied by measures to prevent borrowers from falling into a debt trap.

Key Points:

• The income eligibility for microfinance loans was raised to Rs 3 lakh annually.
• Loans must not exceed half the borrower’s household income, with no prepayment penalties.

3. Unified Pension Scheme (UPS)

The introduction of the Unified Pension Scheme in 2024 offers a guaranteed fixed pension to government employees who joined after 2004. From April 2025, these employees will have the option to shift to the UPS, which will provide 50% of the average pay from the last 12 months as a pension.

Key Points:

• Employee contributions remain the same, but government contributions increase from 14% to 18.5%.
• The scheme aims to provide a safer and more predictable pension alternative compared to the National Pension System (NPS).

4. Scrapping of Angel Tax

In a significant move for the startup ecosystem, the Modi government announced the abolition of angel tax, effective from April 1, 2025. This decision is expected to ease the fundraising process for startups and encourage innovation.

Key Points:

• Angel tax, previously levied on unlisted companies when their valuation exceeded the market value, will no longer apply.
• The move aims to foster entrepreneurial growth and ease the tax burden on startups.

5. BioE3 Policy (Biotechnology for Economy, Environment, and Employment)

The BioE3 policy, approved in August 2024, focuses on strengthening India’s biomanufacturing capabilities. The policy aims to foster innovation in biotechnology and create a skilled workforce while promoting green growth.

Key Points:

• The policy encourages the development of bio-based chemicals, biopolymers, and regenerative bioeconomy models.
• It targets key sectors such as climate-resilient agriculture, carbon capture, and marine research.

6. Employment-Linked Incentive (ELI) Scheme

The ELI Scheme, introduced in the 2024 Budget, aims to create over 2 crore jobs in the next two years. The focus is on skill development, particularly for women in rural areas.

Key Points:

• The scheme focuses on enhancing digital literacy, communication, and problem-solving skills.
• It will contribute to the formalisation of employment, especially in the MSME sector.

7. New EV Policy

Aiming to transform India’s electric vehicle (EV) landscape, the government approved a new policy in March 2024 to encourage the manufacturing of electric passenger cars. The policy also allows companies to import a limited number of EVs at a reduced customs duty.

Key Points:

• The policy focuses on enhancing domestic manufacturing and reducing reliance on imports.
• It aims for a minimum value addition of 25% within three years, with a target of 50% in five years.

8. PM Internship Scheme

The Prime Minister’s Internship Scheme, introduced in 2024, targets 10 million young people by offering internships in India’s top 500 companies over the next five years.

Key Points:

• The scheme will provide youth exposure to industries like IT, banking, energy, FMCG, healthcare, and more.
• It aims to enhance the employability of young Indians and improve industry-specific skills.

9. Indexation Benefit for Immovable Assets Removed

In the 2024 Budget, the government removed the indexation benefit on the sale of immovable assets, except for properties acquired before 2001. This will lead to higher capital gains tax on the sale of long-term assets.

Key Points:

• The move is expected to generate higher tax revenues and is part of efforts to rationalize the taxation system.
• It will likely impact property transactions, particularly in urban areas.

10. Rooftop Solar Power Scheme

In February 2024, the government unveiled a new scheme to promote rooftop solar power installations, aiming to meet India’s renewable energy targets. This initiative allocates 75 billion rupees in subsidies for installing solar panels on 10 million homes.

Key Points:

• The scheme supports India’s goal of tripling its renewable energy capacity by 2030.
• It is expected to generate 30 GW of solar capacity and reduce 720 million tonnes of CO2 emissions.

Conclusion

The Modi government’s policy moves in 2024 reflect a holistic approach to addressing India’s socio-economic challenges. These reforms cover a wide array of sectors, including governance, economic policy, job creation, and sustainable development, marking a decisive shift in India’s growth trajectory. Understanding these policies is essential for those preparing for the UPSC Civil Services Examination, as they highlight the government’s priorities in shaping India’s future.

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