Indian Prime Minister Narendra Modi addressed the nation during his much-awaited speech on New Year's Eve, after the 50-day deadline to deposit or exchange banned notes came to an end. Hailing Indians for their patience and support for the movement, he made several announcements aimed at benefiting the poor and the underprivileged, a step seen by the skeptics as yet another tact to divert attention from the question of the hour.
The speech remained long due as it were a tedious two months since the evening of November 8, when the PM announced the scrapping of 500 and 1000 rupee notes. The notification was followed up by a severe mismanagement on the government's part, mass chaos, and a steady change of rules. Addressing the nation on state television at 7:30 pm, Modi announced a slew of schemes for women, the poor, and the old. Assuring that the ruling National Democratic Alliance was a friend of the honest, Modi, in his 43 minute speech, said his government's focus for 2017 was to bring the banking system to normal at the earliest.
"Since Diwali, our nation has been witness to a historic rite of purification. The patience, discipline, and resolve displayed by 125 crore Indians, will play a critical role in shaping the future of the nation for years to come," Modi said. "Corruption, black money, and counterfeit notes had become so rampant in India's social fabric that even honest people were brought to their knees." Explaining his landmark move, he said, "There is no precedent globally, to what India has done. Nations similar to us do not have the amount of currency that we had. Over the last 10 to 12 years, 500 and 1000 rupee currency notes were used less for legitimate transactions, and more for a parallel economy. The excess of cash was fuelling inflation and black-marketing. It was denying the poor, their due. Lack of cash causes difficulty, but excess of cash is even more troublesome. Our aim is to achieve a balance. Economists agree that when cash is outside the formal economy, it is a cause of worry. When it joins the mainstream, it is an opportunity for development."
"This Government is a friend of good people. And it aims to build an enabling environment for the dishonest to return to the path of goodness. It is also a bitter truth, that people have complaints of bad experiences at the hands of Government machinery, and some government officers. This reality cannot be wished away. No one can deny that Government officers have a greater responsibility than common citizens."
After his effort to satisfy the millions who remained glued to their seats, listening to his speech, NaMo recited a list of programmes to "further the principle of Sabka Saath - Sabka Vikaas". Ensuring homes for the poor, the neo-middle class, and the middle class, Modi said, "Two new middle income categories have been created under the Pradhan Mantri Awaas Yojana in urban areas. Loans of up to 9 lakh rupees taken in 2017, will receive interest subvention of 4 per cent. Loans of up to 12 lakh rupees taken in 2017, will receive interest subvention of 3 per cent." He added, "In addition to this, another scheme is being put in place for the neo middle and middle class in rural areas. Loans of up to 2 lakh rupees taken in 2017, for new housing, or extension of housing in rural areas, will receive an interest subvention of 3 per cent."
Gushing in achche din for rural India, Modi's new top initiatives included, 33 per cent more homes to be built in rural areas under the Pradhan Mantri Awas Yojana, 30 million Kisan credit cards to be converted into RuPay cards, government promises to pay interest for 60 days on loans taken by farmers for Rabi farming from district cooperative banks and societies, and the government promises to give Nabard £2 billion for giving loans to cooperatives at low interest rates. For women, he declared a sum of Rs 6,000 to be transferred to the accounts of pregnant women, in a bid to decrease deaths during childbirth.
The policy decisions of the Modi government announced on 8th November and especially his New Year eve speech have received mixed reaction. While the BJP has hailed PM for unleashing a string of welfare measures for the weaker sections, the Opposition attacked the Modi yet again for "failing" to show "sensitivity" towards people's pain due to demonetisation. Congress slammed Modi for his "lacklustre" address, calling him a merchant of "false promises". They raised questions on why he did not mention how many "lakhs of crores" in black money and fake currencies the government managed to wipe out with the demonetisation move in the last 50 days. The Left attacked him for "failing" to address problems of the poor and farmers caused by demonetisation and charged him with delivering a "budget speech" in view of forthcoming assembly polls in UP and several other states. "He spoke like a pracharak for most of the 45-minute speech... It was like a budget speech," said CPI(M) general secretary Sitaram Yechury.
