Modi 3.0 likely to focus on economic reforms

Modi plans business-friendly measures to boost manufacturing in India, including labor reforms and reduced import taxes.

Indian Prime Minister Narendra Modi plans a raft of business-friendly measures if he wins a third term this week, including pushing through regulations making it easier to hire and fire workers, according to two government officials familiar with the matter.

As part of an election pledge to transform India into a global manufacturing hub, Mr. Modi wants to offer subsidies for domestic production modelled on recent packages for semiconductor firms and electric vehicle makers, said the officials, who spoke on condition of anonymity because they were not authorised to talk to media.

He also plans to reduce import taxes on key inputs for locally-made goods, which have increased India's manufacturing costs, the officials said.

The Prime Minister’s Office and the Labour and Finance Ministries did not respond to Reuters’ questions.

Exit polls project that the Bharatiya Janata Party (BJP) will win a big majority when election results are announced on June 4.

Mr. Modi's re-election campaign was partly built on the promise of continued economic development. He's pitching India as an alternative for global firms diversifying their supply chains from China.

India is the world's fastest-growing major economy, but that includes a booming tech sector and a struggling older economy that doesn't provide enough jobs for everyone else, said Josh Felman, the former head of the International Monetary Fund's office in India. "What can be done now to provide employment — good jobs for these people — is manufacturing," Mr. Felman said.