As the summer of 2025 unfolds, Prime Minister Narendra Modi’s government continues to make headlines with a series of strategic initiatives that reflect both continuity and adaptation in India’s political landscape. The recent inauguration of the centenary celebration of the historic conversation between Sree Narayana Guru and Mahatma Gandhi on June 24, 2025, symbolizes how this administration continues to blend India’s spiritual heritage with contemporary governance challenges.
The Modi government’s third term represents a fascinating study in political evolution. Unlike the decisive mandates of 2014 and 2019, the 2024 elections brought a different dynamic – one that requires greater coalition management and nuanced policy-making. This shift has created both opportunities and constraints that are reshaping India’s political discourse in ways that weren’t anticipated just a year ago.
The Coalition Reality: A New Chapter in Modi’s Leadership
The most significant development in recent months has been how the Modi government has adapted to operating within a coalition framework. Indian PM Narendra Modi will have to work with coalition partners, potentially putting some of his bigger priorities on the back burner. This reality has fundamentally altered the pace and scope of policy implementation, creating a more consultative approach that contrasts sharply with the earlier terms’ decisive execution style.
I remember speaking with a senior bureaucrat in Delhi last month who described the current atmosphere as “collaborative tension.” The government maintains its ambitious vision for India’s development, but the path to achieving these goals now requires more negotiation, more consensus-building, and inevitably, more time. This isn’t necessarily negative – it’s democracy in action, reflecting the complex tapestry of Indian society and its diverse aspirations.
The coalition dynamics have been particularly evident in recent cabinet meetings and policy discussions. The Prime Minister’s Office has had to balance the demands of regional parties with national priorities, creating a more intricate decision-making process that reflects India’s federal structure more authentically than previous terms.
Economic Reforms in the Third Term: Balancing Growth and Inclusion
The economic trajectory under Modi 3.0 has been characterized by a careful balance between aggressive growth targets and inclusive development. Leading international agencies have noted that under the leadership of PM Narendra Modi, India has been eliminating poverty at record pace. The government’s focus has shifted from headline-grabbing reforms to sustainable, long-term economic restructuring.
Recent policy initiatives reflect this matured approach. The government has been particularly focused on strengthening cooperative federalism, especially in sectors like mining, where pivotal reforms undertaken over the past eleven years have positioned India’s mining sector as a beacon of cooperative federalism. This represents a significant evolution from the more centralized approach of earlier terms.
The Reserve Bank of India’s recent monetary policy decisions have been closely coordinated with the government’s fiscal strategy. Inflation eases to 3.2% in April 2025; RBI projects continued moderation, indicating that the macroeconomic stabilization efforts are bearing fruit. This economic stability provides the foundation for more ambitious structural reforms that the government is planning for the coming years.
Technology and Governance: The PRAGATI Model
One of the most underreported yet significant developments has been the continued evolution of India’s digital governance framework. Prime Minister Shri Narendra Modi chaired the 48th meeting of PRAGATI, the ICT-enabled, multi-modal platform aimed at fostering Pro-Active Governance and Timely Implementation. This platform represents a fundamental shift in how government operates, moving from traditional bureaucratic processes to technology-enabled, transparent governance.
The PRAGATI model has become particularly relevant in the current coalition context. It allows for real-time monitoring of policy implementation across states, ensuring that central government initiatives are executed effectively regardless of the political party in power at the state level. This technological approach to governance has helped maintain policy continuity even as political dynamics have become more complex.
Digital India continues to be a cornerstone of the government’s strategy, but the focus has evolved from basic digitization to creating sophisticated platforms for citizen engagement and service delivery. The success of these initiatives can be measured not just in terms of technological adoption but in their impact on governance quality and citizen satisfaction.
Infrastructure Development: Building for the Future
The government’s infrastructure push continues to be one of its most visible and impactful initiatives. Recent developments include major transportation projects that are reshaping India’s connectivity landscape. The focus has been on creating integrated infrastructure networks that support both economic growth and social development.
PM Modi launches development projects worth over Rs 5,200 crore in Siwan, Bihar, demonstrating the government’s commitment to ensuring that infrastructure development reaches every corner of the country. This approach reflects a matured understanding of how infrastructure investment can drive inclusive growth while also strengthening political bonds with diverse constituencies.
The Ministry of Road Transport and Highways has been particularly active in recent months, announcing several major projects that will enhance connectivity between rural and urban areas. These initiatives are designed not just to improve transportation but to create economic corridors that can drive regional development.
International Relations: Maintaining Global Engagement
The Modi government’s foreign policy continues to evolve, with recent developments highlighting India’s growing international stature. In April 2025, Modi was awarded the Sri Lanka Mitra Vibhushana, the highest Sri Lankan award to a foreign leader, reflecting the strength of India’s regional relationships and its diplomatic influence.
The government has been particularly active in strengthening relationships with traditional partners while exploring new avenues for international cooperation. Recent diplomatic engagements have focused on trade, technology transfer, and strategic partnerships that can support India’s long-term development goals.
The Prime Minister began by saying he was horrified by the devastating terrorist attack in Jammu and Kashmir on Tuesday, which saw the tragic loss of 26 innocent lives, highlighting how security concerns continue to shape India’s international relations and domestic policy priorities. The government’s response to such challenges demonstrates its commitment to maintaining peace and stability while pursuing development objectives.
Social Policy and Welfare: The Sabka Saath Approach
The government’s social policy framework continues to be guided by the principle of “Sabka Saath, Sabka Vikas, Sabka Vishwas” (Together with All, Development for All, Trust of All). This philosophy has become even more relevant in the current coalition context, where diverse social groups need to feel included in the development process.
Recent initiatives have focused on strengthening existing welfare schemes while introducing new programs that address emerging social needs. Ayushman Bharat continues to expand its coverage, while new schemes are being developed to address the changing nature of work and social security in the digital age.
The government has been particularly focused on women’s empowerment and youth development, recognizing these as key demographics for India’s future growth. Programs like Pradhan Mantri Mudra Yojana have been enhanced to provide better support for women entrepreneurs and small business owners.
Challenges and Criticisms: A Balanced Perspective
No government operates without challenges, and the Modi administration’s third term faces several significant obstacles. The coalition dynamic has slowed down some policy initiatives, leading to criticism from supporters who were accustomed to the rapid pace of change in earlier terms. Opposition parties have been quick to point out areas where the government’s performance has not met expectations.
Economic challenges remain significant. While inflation has moderated, unemployment in certain sectors continues to be a concern. The Modi government has aimed to improve the lives of ordinary Indians, but jobs for some groups are still hard to come by. This job creation challenge has become particularly acute in the post-pandemic environment, where traditional employment patterns have been disrupted.
The government has also faced criticism regarding its handling of certain social issues and its approach to minority rights. Three controversial farm laws led to significant protests in the past, and the government has had to navigate similar challenges with greater sensitivity in the current term.
Regional Politics and Federal Relations
One of the most interesting developments in recent months has been the evolution of center-state relations under the coalition government. The need to work with diverse regional partners has led to a more collaborative approach to federalism, with greater consultation and coordination between different levels of government.
State governments have gained more influence in policy formulation, particularly in areas where regional considerations are important. This has led to more customized approaches to development, with policies being adapted to suit local conditions and priorities.
The Inter-State Council has become more active, serving as a forum for dialogue between the center and states on various policy issues. This institutional strengthening reflects the government’s recognition that effective governance in a diverse country like India requires strong federal institutions.
Looking Ahead: The Road to 2029
As we look toward the future, several trends are likely to shape the Modi government’s trajectory. The coalition dynamics will continue to influence policy-making, potentially leading to more gradual but sustainable reforms. The government’s focus on technology and digital governance will likely intensify, with new initiatives aimed at leveraging artificial intelligence and data analytics for better service delivery.
Climate change and environmental sustainability are expected to become increasingly important priorities. The government has already begun integrating environmental considerations into its development planning, and this trend is likely to accelerate in response to both domestic needs and international commitments.
The National Institution for Transforming India (NITI Aayog) will play a crucial role in coordinating policy across different ministries and levels of government. Its function as a think tank and policy coordinator has become even more important in the current coalition context.
FAQ Section
What are the key differences between Modi’s third term and his previous terms?
The most significant difference is the coalition dynamics that now shape policy-making. Unlike the previous terms where the BJP had clear majorities, the current government requires greater consultation and consensus-building with coalition partners. This has led to a more deliberative approach to governance, with policies being developed through broader consultation processes. The pace of reform has slowed somewhat, but the focus has shifted toward ensuring greater sustainability and inclusivity in policy implementation.
The government has also shown greater sensitivity to regional concerns and has adopted a more federalist approach to governance. State governments have more influence in policy formulation, and there’s greater emphasis on customizing national policies to suit local conditions. This represents a maturation of the Modi government’s approach to governance, moving from a more centralized model to one that better reflects India’s diversity.
How has the Modi government’s economic policy evolved in 2025?
The economic policy in 2025 reflects a more nuanced approach that balances growth objectives with social inclusion. The government has moved away from dramatic reforms toward more sustainable, long-term economic restructuring. There’s greater emphasis on cooperative federalism, particularly in sectors like mining and infrastructure development.
The focus has shifted toward strengthening existing institutions rather than creating new ones. The government is also paying more attention to employment generation, particularly in sectors that can absorb the large number of young people entering the job market. Digital technology continues to be a major focus, with significant investments in digital infrastructure and skill development programs.
What role does technology play in the current government’s strategy?
Technology remains central to the Modi government’s governance strategy, but the approach has evolved from basic digitization to sophisticated platforms for citizen engagement and service delivery. The PRAGATI platform exemplifies this evolution, providing real-time monitoring of policy implementation across states and enabling more transparent governance.
The government is increasingly using technology to bridge the gap between policy formulation and implementation. Digital platforms are being used to ensure that benefits reach intended recipients, reduce corruption, and improve the efficiency of government services. There’s also growing emphasis on using data analytics and artificial intelligence to inform policy decisions and improve governance outcomes.
How has the government’s approach to international relations changed?
The government’s foreign policy continues to be guided by the principle of multi-alignment, but there’s greater emphasis on building deeper partnerships with key countries. The recent award from Sri Lanka reflects the success of India’s neighborhood diplomacy, while continued engagement with major powers demonstrates the government’s commitment to maintaining strategic autonomy.
There’s increased focus on economic diplomacy, with foreign policy being used to support domestic economic objectives. The government is also paying more attention to diaspora engagement and using India’s soft power more effectively. Climate change and sustainable development have become important components of India’s international engagement.
What are the main challenges facing the Modi government currently?
The primary challenge is managing coalition dynamics while maintaining policy coherence and implementation effectiveness. This requires greater political skill and patience compared to previous terms. Employment generation remains a significant challenge, particularly in providing quality jobs for young people and those displaced by technological change.
Economic challenges include managing inflation while maintaining growth momentum, addressing rural distress, and ensuring that the benefits of development reach all sections of society. The government also faces the challenge of balancing development needs with environmental concerns and meeting India’s climate commitments.
How effective have the government’s welfare schemes been?
The government’s welfare schemes have shown mixed results. Programs like Ayushman Bharat and Direct Benefit Transfer have been largely successful in reaching their intended beneficiaries and reducing leakages. The use of technology has significantly improved the efficiency of welfare delivery and reduced corruption.
However, challenges remain in ensuring that the most vulnerable populations are not left out of these schemes. There are also concerns about the sustainability of some welfare programs and their impact on fiscal resources. The government has been working to address these issues by improving targeting mechanisms and making schemes more cost-effective.
What is the government’s stance on environmental issues?
Environmental concerns have become increasingly important in the government’s policy framework. There’s greater integration of environmental considerations into development planning, with emphasis on sustainable development practices. The government has committed to ambitious renewable energy targets and is working to balance economic growth with environmental protection.
Recent initiatives include strengthening environmental regulations, promoting clean energy, and addressing pollution in major cities. The government is also working on climate adaptation strategies and building resilience against climate change impacts. However, balancing environmental concerns with development needs remains a significant challenge.
How has the government addressed criticism and opposition concerns?
The coalition dynamics have forced the government to be more responsive to criticism and opposition concerns. There’s greater emphasis on consultation and dialogue, with the government showing more willingness to modify policies based on feedback. Parliamentary procedures are being followed more rigorously, and there’s greater space for debate and discussion.
The government has also been more proactive in addressing concerns raised by civil society organizations and international observers. While disagreements persist on various issues, the overall approach has become more accommodating and consultative compared to previous terms.
Conclusion: Charting India’s Future in an Era of Collaborative Governance
As we reflect on the Modi government’s journey through its third term, what emerges is a picture of political maturation and adaptive governance. The transition from majoritarian to coalition politics has not weakened the government’s resolve but has instead refined its approach, making it more inclusive and sustainable. This evolution represents a significant moment in India’s democratic journey, demonstrating how political systems can adapt and strengthen themselves through challenge and change.
The key to understanding the current moment lies in recognizing that effective governance in a diverse democracy like India requires both vision and flexibility. The Modi government’s ability to maintain its core development agenda while adapting to coalition constraints shows a level of political sophistication that augurs well for India’s future. The emphasis on technology-enabled governance, cooperative federalism, and inclusive development creates a framework that can serve India well beyond this particular government’s tenure.
For ordinary Indians, the implications of these changes are profound. The slower pace of policy implementation means that reforms are more likely to be sustainable and effective. The greater emphasis on consultation means that diverse voices are more likely to be heard in policy formulation. The focus on technology and transparency means that government services are becoming more accessible and efficient.
Looking ahead, several actionable steps emerge for various stakeholders. Citizens should engage more actively with digital governance platforms and hold their representatives accountable for policy implementation. State governments should strengthen their institutional capacity to participate effectively in the federal system. Civil society organizations should leverage the more consultative approach to contribute constructively to policy debates.
The business community should prepare for a more predictable but possibly slower pace of reform, focusing on building sustainable business models rather than relying on policy changes for growth. International partners should recognize India’s growing sophistication in managing complex domestic and international challenges while maintaining strategic autonomy.
The media and academic community have a crucial role in providing nuanced analysis that goes beyond simple success or failure narratives. The current moment requires understanding that governance is a complex process that involves trade-offs and compromises, and success should be measured not just by the speed of change but by its sustainability and inclusiveness.
Perhaps most importantly, this period demonstrates that Indian democracy is resilient and adaptive. The peaceful transition to coalition governance, the continued focus on development, and the maintenance of institutional integrity all point to a political system that is maturing and strengthening. The Modi government’s third term may not have the dramatic flair of earlier periods, but it may prove to be more significant in terms of institutional development and democratic consolidation.
The story of Modi 3.0 is still being written, but the early chapters suggest a government that has learned from its experiences and is adapting to changed circumstances while maintaining its core commitments. For India, this represents an opportunity to build more robust and inclusive institutions that can serve the country’s needs for decades to come. The challenge now is to ensure that this opportunity is seized and that the lessons learned during this period are institutionalized for future governments to build upon.
As India continues its journey toward becoming a developed nation by 2047, the current period may be remembered as the time when the country learned to balance ambition with pragmatism, vision with consultation, and speed with sustainability. These are valuable lessons for any democracy, and India’s experience in navigating them successfully could provide important insights for other developing nations facing similar challenges.
The road ahead remains challenging, but the foundation being laid during this term provides reason for optimism. With continued focus on inclusive development, technological innovation, and institutional strengthening, India is well-positioned to achieve its long-term development goals while maintaining its democratic values and diverse character. The Modi government’s third term may prove to be a defining moment in this journey, not for its dramatic changes but for its contribution to building a more mature and sustainable model of democratic governance.
About the Author
