“Between Expectations and Challenges: Modi Faces a Testing Third Term”
Gustakhi Maaf Haryana- Pawan Kumar Bansal
By our enlightened reader Satish Mehra.Challenges Galore for Modi in His Third Term—Domestic and Global
Prime Minister Narendra Modi’s third term is passing through a sensitive and decisive phase. On one hand, there are high public expectations from him, while on the other, the nature of governance, economic pressures, social complexities, and the global scenario have placed the government in the midst of deep challenges. This term is not only a test of policy choices but also of the government’s coordination, communication, foreign trade diplomacy, and practical as well as ideological approaches.
The greatest impact is being seen on the economic front. Speaking of external challenges, the anti-India policies of U.S. President Donald Trump have heightened concerns among citizens. By raising tariff rates one after another, the U.S. has continuously posed challenges before India. First, by imposing a 50% tariff on Indian exports to the U.S., Trump shook the corporate and trade sectors. Increasing H-1B visa fees and raising tariffs on pharmaceuticals crossed all limits. Trump is not only trying to dismantle India’s trade policy but, through a well-thought-out plan, is also undermining India’s sovereignty. He has repeatedly claimed credit for ceasefire efforts during “Operation Sindoor” between India and Pakistan, and at various points extended support to India’s arch-rival Pakistan. This is no less than a major external challenge for India. Trump seems determined to trouble and hurt India until Narendra Modi accepts U.S. terms. If no meaningful decision emerges in India’s favor from talks between Trump and Modi, then certainly the agreements made against India by the U.S. will soon be enforced, creating serious difficulties for the country.
Meanwhile, the slowdown in the global economy and disruptions in supply chains have affected India’s exports and investment climate. At the same time, relations with the U.S., Europe, and Gulf countries are moving in a direction of gradual improvement. However, maintaining strategic balance—especially with Russia, China, and the West—remains a delicate task. Issues of energy security, raw material availability, and global technological partnerships further complicate these strategic challenges. Alongside Trump’s anti-India decisions, internal opposition parties have also been mounting pressure on Prime Minister Modi. While earlier the NDA government was unwilling to conduct a separate OBC census, under political pressure it has now agreed. For years, opposition parties had been pushing for GST reduction, and now that pressure has worked—the central government has reduced GST in two categories. Opposition parties are projecting the OBC census and GST cuts as their victory.
Additionally, ensuring income stability in agriculture, addressing the struggles of small and medium enterprises, and creating adequate employment opportunities for youth are issues on which public patience is limited. As seen in India’s neighboring countries—Bangladesh, Nepal, and Sri Lanka—where public frustration, particularly among Gen-Z, over jobs and opportunities has grown, similar concerns naturally weigh on India’s government. Indian thinkers and writers are increasingly discussing Gen-Z, a debate that gained momentum when Sonam Wangchuk launched a movement in Leh, Ladakh. When protests began to gain traction, the central government quickly arrested Wangchuk under the NSA and sent him to Jodhpur Central Jail, attempting to send a strong message that any anti-government movement would be dealt with strictly.
On the social front, the government must also maintain sensitive balance. Incidents of religious and caste-based tensions, debates over civil liberties, and concerns about access to basic services like education and healthcare have increased public unease. The challenge for the government is to translate its claims of development into visible results on the ground, not just announcements. Politically, coalition dependence has emerged as a reality in Modi’s third term. Unlike the earlier absolute majority, policy-making now reflects the influence of allies and regional interests. This can slow down decision-making and demands more refined dialogue and accommodation; otherwise, policy stability may be at risk.
Globally, India’s standing has risen rapidly, but challenges have also become more subtle and complex. Border tensions, strategic rivalry, and economic competition with China present a major external test. At the same time, permanent tensions with Pakistan and cross-border security threats persist. Solutions to these challenges cannot be limited to military options or hard diplomacy alone; maintaining strategic balance through economic, technological, and multilateral forums is equally vital. It would not be an exaggeration to say that India’s role on the global stage has expanded. Growing participation in international institutions, stronger ties with developing countries, and India’s voice on climate change and technology have increased expectations as well. Balancing support for developing nations with cooperation from developed powers remains a major diplomatic challenge for Modi’s government.
These challenges cannot be solved through one-sided policies. What is needed is a comprehensive strategy that includes job-creating policies, concrete measures to strengthen the rural economy, investments in health and education, and genuine relief for micro-enterprises. Alongside this, flexibility in dialogue with allies and inclusiveness in policymaking can provide stability. In diplomacy, the government must advance multilateral cooperation while maintaining strategic autonomy. Technical partnerships for industries, alternative sources for energy security, and coordinated military-diplomatic strategies for border management are essential.
Undoubtedly, Prime Minister Narendra Modi’s third term is a period filled with challenges, but also with opportunities. If the government prioritizes domestic justice and inclusion, adopts solid and long-term policies for sustainable economic growth, and conducts balanced, cautious, and proactive diplomacy internationally, then this term can become a time of decisive progress for India. Otherwise, coalition dependence, economic pressures, and global uncertainties could cast doubt on the leadership’s image. The demand of the hour is not only to recognize challenges but to resolve them with determination and wisdom—only then can the third term be called a success.