Disruption is a way of life – 4 years of Modi govtby Opinion Express June 4, 2018 0 comments
The Modi government is being credited for a host of reform programmes to attract FDI, improve ease of doing business, and rolling out of goods and services tax (GST). All the structural changes in a vast nation do generate enormous dust but the trust factor in PM Modi has sailed the boat for NDA in the last four year of governance. There are many areas where the government’s actions have improved the lives of the people or are expected to do so specially in the rural area where there is a huge farmer distress and unemployment crisis. Prime Minister Narendra Modi-led NDA government completes four years in office on 26 May 2018 and the list of achievements is a long one. The Modi government is being credited for a host of reform programmes to attract FDI, improve ease of doing business, and rolling out of goods and services tax (GST). The corruption has been curtailed by effective usage of technology and strict monitoring of programs. The various corruption laws are amended and the enforcing agencies are given discretion to nab the corrupt public servants.
1. Demonetisation: Government launched a major attack against black money through this drive in which Rs 500 and Rs 1000 notes were banned. This attack on the informal sector led to an expansion of market share for the formal part of the economy. Demonetisation was an exercise that gave digital payments a big boost. Even though cash has made a comeback, the demand for cash or currency is 7 per cent higher at Rs 18.25 trillion at the end of April compared to Rs 17 trillion at the beginning of November 2016, the momentum provided to digital payments is unstoppable now. It is expected to move the country from a predominantly cash oriented society to a mostly cashless one.
2. Make in India: A strong economy needs strong local manufacturing base. Over dependence on agriculture and service sector is unhealthy for national economic strength. This is the government’s major national programme to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build an infrastructure in India that would turn the country into a manufacturing hub. The focus of Make in India is on 25 sectors including automobiles, aviation, chemicals, IT & BPM, pharmaceuticals, construction, defence manufacturing, electrical machinery, food processing.
3. GST & GDP: PM Modi must be given credit to implement India’s biggest tax structural reform by risking the popularity of his government. Off course, the first year of GST implementation has been extremely challenging for the government and government has attracted lot of ire from its traditional trading community vote bank but to Modi’s credit, he struck to the task resulting in major consolidation of formal economy. It is expected that with complete roll out of GST in India, the informal economy will shrink to less than 20% of the economy. The International Monetary Fund has forecast a bullish GDP growth for India at 7.4 per cent in 2018, and a better 7.8 per cent for 2019, making India the fastest growing economy globally. India’s GDP is expected to reach $6 trillion by FY27, it will make India the fourth largest economy of the world, a dream that started in 1992 by then PM Narasimha Rao is now a reality for over billion people. India is poised to grow at over 7% in the next decade or so and it will lead to elimination of poverty and distress from the bottom pyramid of the society.
4. Digital India: Digitisation will have far-reaching implications for corporate, household and public sectors, besides providing a better credit delivery in the economy. Also, delivery of subsidies directly into beneficiaries bank accounts is another such measure. Digitisation is boosting financial inclusion (Jan Dhan), Aadhaar card, rising smartphone penetration (JAM, or Jan Dhan, Aadhaar, Mobile), along with GST system. PM Modi was bulldozed to power in 2014 mainly on anti- corruption and inefficient government platform, so effective usage of technology became the principle tool for Modi to transmit clean government. PM Modi has extensively focused on the digital India mode to deliver effective, clean and transparent governance and his government is likely to be a major beneficiary of the effort.
5. Employment: According to Labour Bureau data, despite having a healthy GDP growth, new jobs have not been created in enough numbers. In 2016-17, 4.1 lakh actual jobs were created as against the BJP’s electoral promise of creating one crore jobs annually. However, recent EPFO data showed that 31 lakh jobs were created between Sept 2017 and Feb 2018. Modi led NDA government has focused on extending loans for self employment schemes popularly known as “Mudra Bank” and it is projected as the flag ship scheme of the Modi Sarkar.
Prashant Tewari, Editor-in-Chief