Under the leadership of Prime Minister Narendra Modi, the Government of India at the end of May completed its first year in office. This has been a period of high expectations and huge challenges, both in foreign and domestic policies.
Despite obstacles created by opposition parties, particularly by the Congress Party, which adopted anti-growth, anti-government approach and inspite of constraints occasionally caused by some elements in the BJP, Modi’s Government has successfully addressed many challenges and Modi continues to steadfastly promote the Party’s objective to make India economically prosperous and militarily a strong nation.
Some of the important initiatives taken by the Government include 125 million poor people now holding bank accounts which was considered almost impossible for them one year ago. This will facilitate replacing food and fuel subsidies with cash transfer to prevent corruption. One hundred Smart Cities have been planned. Great priority is given by Modi’s Government in widening the customer base of the banks. The State Bank of India was recently included in the list of most outstanding establishment world-over. Three Mega Life Insurance and Pension Projects have been set in motion. One billion people will soon have a unique digital identity number, linked to biometric database. 850 million are enrolled so far. Modi has increased the share of taxes given to States to 42% from 32%. On that basis States will this year receive about $28 billion taxes than $18 billion which they were earlier receiving from the Central government. The biometric attendance system will improve working hours of officials of the Central Government. Coalfield leases, found to have been sold at artificially low prices, are reallocated through a transparent process; so was telecom spectrum allocation. The Government has deregulated prices of diesel, petroleum and cooking gas and raised limits on foreign investments in the defense and insurance sectors to 49 percent. Government now requires business deals to be reviewed through a centralized system. Gone are the days of informal meetings that business leaders used to hold with ministry officials, often to harsh out policies regulating their sectors.
Modi Government’s objective is to function in a clean and decisive manner. I believe the present Government is the cleanest in many years. In order to reduce corruption Digital India Project has been launched. As a result Transparency International has announced that in the 18 years this is the first time that India ranks below China in corruption list. India has also improved in the index, jumping 10 places.
The goal of “Make in India“ project is to make India self-reliant in manufacturing including production of arms and creation of jobs. To that end, despite global financial crisis and consequent economic slow down, 330 FDI projects are being actively pursued. Foreign companies, which have long despaired at levels of taxation and corruption, have welcomed his drive to make India a manufacturing hub. FDI has risen by more than 25 percent to 28.8 billion in the 2014-15 fiscal year. The Chairman of Niti Aayog (Policy Commission which replaced the Planning Commission set up by India’s first Prime Minister) who advocates fiscal stimulus to invest in infrastructure is of the view that it will help finance health and other social expenditure.
Inflation is at all time low. U.N World Economic Report says that India’s economy is projected to grow at 7.6% this year and 7.7% in 2016 overtaking China. According to World Bank‘s Chief Economist, India is, for the first time, leading the World Bank’s growth chart of major economies. There are more than 330 billion dollars in foreign reserves. Inflation fell to 4.87 percent in April.
India now decisively moves into global era. Modi has put India on the track of a super power. He has changed India from a very weak country to an assertive nation. The international community is following India’s progress with interest and in the last one year world perception of India has changed. Representing the largest political party in the world, Modi’s 30 million followers on Facebook are watching his performance. Prime minister Modi recently told the Time magazine “You will actually see that, internationally, the whole world is, once again, excited about India and enthusiastic about India and the opportunities that India represents.”
According to the Centre for Strategic Studies, Modi’s first year in the office was the best for India in terms of economic recovery. Christine Lagarde, Managing Director of International Monetary Fund says that India is fuelling global economic growth.
Indians are looking towards Modi as the harbinger of hope who has re-energised them. He is also galvanising support of NRIs and of diaspora to help in developing India’s economy.
His Government has embarked on strengthening and diversifying defence capability which includes construction of a new naval base near Porbandar in Gujarat which will enhance security capacity in the Region. India is also establishing facility to monitor warships and submarines in North and North East as well as in the Indian Ocean.
Modi’s Government has placed emphasis on infrastructure and in social strengthening schemes such as development of housing for the poor. In this he want to place India at par with infrastructural economy like in Japan and in the USA. Modi feels that infrastructure investment will generate dividends for the poor by increasing the economy’s capacity to grow through better roads, ports and railways. He has saved money on federal social and subsidy expenditure and pumped it into infrastructure stimulus he hopes will trigger a spurt in economic growth. Launching the Integrated Power Development Scheme will require insightful planning.
Modi who is gifted at diplomacy has established cordial relations with many countries including America, Russia and China and has contracted for supply of equipment and has signed agreements for investment in critical sectors including in nuclear field. With this and with other investments in the sector it will not be too long before India becomes a military giant. He has executed a land boundary deal with Bangladesh which settles the ownership of 162 enclaves – essentially islands located in each others country. This complex ownership arrangements made centuries ago by local Princes had proved elusive for decades.
Modi has positioned India at the centre stage of the world and the country is on the way to progress in all fields. There is still a great deal that remains to be tackled including pressing issues such as land legislation, irrigation which is a priority as well as mining. I hope Joint Parliamentary Committee can help to achieve desired action on these matters so that India will enhance progress on these structural reforms.
Modi’s thirst on minimum government, maximum governance targets to make India more market friendly but his mission to reform India and to make its economy grow faster he needs much cohesive support & cooperation of his colleagues in the Party and in the Government. Since he will be dealing with nearly 1.3 billion people and 36 states and union territories he will need the powers of one of India’s multi-limbed deities to meet the expectations of the Nation.
Sir Jayant (Andy) Chande is a most prominent member of the Indian community in Africa.
