“New India Standing on a Mountain of Debt: Is an Empire of Debt Hidden Behind the Glitter of Development? ‘Good Days’ or ‘Days of Debt’? The Truth of the Modi Government’s Economic Policy”

Author: Vijay Shankar Nayak, Senior Congress Leader, Jharkhand

In 2014, when Narendra Modi came to power under the leadership of the Bharatiya Janata Party, a new political slogan was presented before the country—“New India,” “Acche Din (Good Days),” and a “Strong Economy.” At that time, it was repeatedly claimed that the previous government led by Manmohan Singh and supported by the Indian National Congress alliance had weakened the country economically.
However, almost a decade later, a major question now stands before the nation: Has India truly become economically stronger, or is the country rapidly climbing a mountain of debt?
Data from government budgets and economic reports indicate that India’s total public debt has been steadily increasing. This article examines this rising debt with data, analysis, and critical political questions.
Around 2004, India’s total government debt was approximately ?17 lakh crore. By 2014, it had risen to about ?55 lakh crore. This increase certainly occurred, but during the same period India’s GDP was also growing rapidly. For several years, India’s growth rate remained around 7–8 percent, making it one of the fastest-growing economies in the world.
When government debt increases, its burden ultimately falls on citizens. Around 2014, the per-capita debt in India was roughly ?40,000–?45,000 per person. Today, under the tenure of the BJP government led by Narendra Modi, the per-capita debt has risen to more than ?1 lakh per citizen, which is a matter of concern for the people of the country. In practical terms, this means that even a newborn child enters the world already carrying the burden of government debt.

Major Economic Programs During the Congress Period
During the tenure of the Congress-led government, several social and economic programs were introduced using borrowed resources, with the interests of the nation and its citizens at the center. These included:
•    Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA)
•    Right to Education
•    Rural Roads Program
•    Rural Development Schemes
•    National Health Mission
•    Expansion of Banking Access
•    Right to Information
•    Food Security Act
These initiatives played an important role in strengthening the rural economy and increasing the purchasing power of the poor. They also helped lift many people above the poverty line, reduced unemployment, and slowed migration from rural areas.

Economic Policies Under the BJP Government
Many critics argue that the economic policies of the BJP government under Narendra Modi have largely failed to meet expectations.
It is true that progress has been made in certain sectors such as digital payments, infrastructure development, and the startup ecosystem. However, several major decisions—such as demonetization and the farm laws—became subjects of intense controversy and economic debate.
In a large and complex country like India, the impact of economic policies is also complex. Therefore, continuous evaluation of such policies is necessary. In a democracy, questioning and analyzing government policies is a sign of an aware and responsible citizenry.

Is India Falling Into a Debt Trap?
After the change of power in 2014, Narendra Modi became the Prime Minister. Around the world, many countries have faced severe economic crises due to excessive debt. It is essential for India to learn from such examples.
Countries such as:
•    Greece
•    Argentina
•    Sri Lanka
have experienced economic instability due to unsustainable levels of debt.
The Modi government has taken several major economic initiatives, including:
•    Infrastructure expansion
•    Digital India
•    Make in India
•    Major defense deals
However, alongside these initiatives, government debt has continued to grow rapidly.
Data suggests the following:
•    2014: Total debt around ?55 lakh crore
•    Around 2020: Approximately ?105 lakh crore
•    Recent years: More than ?150 lakh crore
This means that within roughly a decade, India’s government debt has nearly tripled.

1. Understanding Government Debt
Government debt refers to the money that the government borrows from various sources to meet its expenditure requirements.
The government raises funds through:
•    Government bonds
•    Banks and financial institutions
•    Pension and insurance funds
•    International financial institutions
Borrowing itself is not wrong; almost every government in the world borrows to finance development projects.
However, danger arises when:
•    Debt grows very rapidly
•    Revenue grows slowly
•    Borrowed funds are not used for productive investment
•    Non-development expenditure rises sharply while development expenditure declines

2. Economy During the Manmohan Singh Era (2004–2014)
From 2004 to 2014, India experienced significant economic growth. Prime Minister Manmohan Singh was widely regarded as one of the most respected economists in the world.
During this period:
•    2004: Government debt around ?17 lakh crore
•    2014: Increased to around ?55 lakh crore
Despite this increase, GDP growth remained strong, averaging 7–8 percent annually.

3. Rapid Increase in Debt After 2014
After the change in government in 2014, Narendra Modi became Prime Minister.
Key figures show:
•    2014: Debt about ?55 lakh crore
•    Around 2020: About ?105 lakh crore
•    Recent years: Over ?150 lakh crore
In other words, government debt nearly tripled within a decade.

4. Debt-to-GDP Ratio
A country’s economic health cannot be judged solely by the size of its debt. Economists also examine the Debt-to-GDP ratio.
India’s situation:
•    Around 2014: approximately 66%
•    Recent years: around 80%
This indicates that debt is growing faster than the economy itself.

5. Debt Per Citizen
The burden of government debt ultimately falls on citizens.
•    2014: Per-capita debt about ?40,000–?45,000
•    Today: More than ?1 lakh per person
This means every Indian—rich or poor—shares the burden of national debt.

6. Interest Payments: A Major Budget Burden
A significant portion of the Union Budget is spent simply on paying interest on existing debt.
Every year, lakhs of crores of rupees go toward interest payments alone.
As a result:
•    Less money remains for education
•    Limited funds for healthcare
•    Pressure increases on employment programs
When a government spends a large share of revenue servicing debt, economic balance can weaken.

7. Government’s Argument: Debt for Development
The government argues that borrowing is being used for development projects such as:
•    National highways
•    Railway expansion
•    Digital infrastructure
•    Defense modernization
According to the government, these investments will stimulate long-term economic growth.

8. Criticism: Development or Debt-Driven Politics?
Critics argue that sometimes borrowed funds are used for short-term political gains, including:
•    Free schemes
•    Short-term populist announcements
•    Expensive but politically popular programs
If borrowing does not create sustainable economic productivity, it may become a long-term burden.

9. Youth and Employment
India has the largest youth population in the world.
Before coming to power, the Modi government promised two crore jobs per year. However, critics argue that this promise has not been fulfilled.
Today:- Unemployment remains a serious challenge ,Millions of young people struggle for government jobs ,Many small industries have shut down, If debt is rising but employment is not, it raises major questions about economic policy.

10. International Comparison
Many countries have faced economic crises due to rising debt. When debt levels become too high, governments are forced to adopt harsh economic measures .India is not yet in such a situation, but economists warn that debt growth must be controlled.

11. Is India Moving Toward Economic Dependence?
Economic history shows that several nations lost economic independence due to excessive borrowing.
When a country spends most of its revenue repaying debt, its policy decisions may come under the influence of lenders. Therefore, economists emphasize that controlling debt is essential for economic sovereignty.

12. Role of Citizens
In a democracy, governments are accountable to the people. Citizens must ask critical questions: - Why is government debt increasing?  ,  Where is the borrowed money being spent?  ,  Is it creating employment?
Public awareness is essential for economic accountability.

13. The Way Forward for India
India still has strong economic potential. If the right policies are adopted, the country can strengthen its economic future. Necessary steps include: - Expanding the manufacturing sector, Generating employment opportunities, Maintaining fiscal discipline, Strengthening economic management, Increasing investment in education, healthcare, agriculture, and research

Conclusion
India stands today at a crucial economic crossroads.
On one hand, there are bold claims of development; on the other, there is the reality of rapidly increasing public debt. It is essential that economic policies be openly debated and that the government transparently explain where borrowed money is being spent. Because ultimately, government debt is not just a number—it represents the future of the next generation. If debt translates into development, it becomes investment. But if it is used merely for political popularity, it may become a burden on the nation’s future. Therefore, it is vital that citizens remain aware of economic issues and ask important questions about the country’s future.