For Narendra Modi, reforms take the revamp route

While unveiling his vision for economy, PM Narendra Modi promised to take through many of...

By: ENS Economic Bureau | New Delhi | Published:August 16, 2014 11:51 am

 

President Pranab Mukherjee shares a light moment with Prime Minister Narendra Modi during the Independence Day celebrations in Rashtrapati Bhawan. (Photo source: PTI) President Pranab Mukherjee shares a light moment with Prime Minister Narendra Modi during the Independence Day celebrations in Rashtrapati Bhawan. (Photo source: PTI)

While unveiling his vision for the economy, Prime Minister Narendra Modi promised to take through many of the agenda issues mentioned in the BJP’s election manifesto along with taking forward several existing policies, albeit in a revamped format.

 

Here are the new policies of Narendra Modi-led NDA government:

 

MAKE IN INDIA:

 

Make India a manufacturing centre. Will help revive growth, lower CAD and improve employment

 

* BJP Manifesto: Planned to move India from a global market to a global manufacturing hub with focus on small and medium industries

 

* UPA policy: Had announced a national manufacturing policy and incentives in special economic zones, national investment and manufacturing zones to boost domestic production

 

Tipping point:

 

* Loss of investor confidence in government policies

 

* Global economic crisis impacted domestic capabilities

 

PRADHAN MANTRI JAN DHAN YOJANA

 

New financial inclusion plan to provide bank accounts, debit cards and Rs 1 lakh insurance to all:

 

* BJP Manifesto: Promised to use mobile and e-Banking to ensure financial inclusion

 

* UPA policy: A financial inclusion scheme was in place with a focus on rural areas and only banking services

 

Tipping point:

 

* Limited reach of the scheme

 

* Focuses only on bank accounts and not insurance and pension products

 

DIGITAL INDIA

 

Provide broadband facilities, telemedicine, e-governance and produce electronic goods domestically

 

* BJP Manifesto: Aimed to nurture a Digital India — making every household and individual digitally empowered, with broadband connectivity, e-governance and IT jobs

 

* UPA policy: Had a national e-governance programme with service centres for electronic delivery of public services, brought in Sam Pitroda to work out innovations in the sector

 

Tipping point:

 

* Schemes had limited impact

 

* Broadband connectivity yet to reach all households

 

SKILLED INDIA

 

Promote skill development. Ministry of skill and entrepreneurship set up:

 

* BJP Manifesto: Address the employability issue by initiating a multi-skill development programme in mission mode

 

* UPA policy: Had appointed an advisor to the PM on skilling, set up a National Skill Development Authority and a National Skill Development Corporation. Set a target of skilling 500 million people by 2022

 

Tipping point

 

* Diffused effort, inter-department turf war on skilling programmes

 

* Scheme had limited beneficiaries — new plan to go beyond the 500 million target

 

ON PLANNING COMMISSION

 

Replace Planning Commission with a new institution, focus on Centre and state governments working as a “team”:

 

* BJP Manifesto: Promised to evolve a model of national development, that is driven by the states and chief ministers

 

* UPA policy: Though Planning Commission worked as a full-fledged institution, former Prime Minister Manmohan Singh had said its role needed to be reviewed

 

Tipping point

 

* Five-year plans not relevant in current economic functioning

 

* Created bottlenecks, additional layers of approvals in areas such as infrastructure

 

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  1. S
    Sid Harth
    Aug 29, 2014 at 8:23 pm
    भगोडा घोडा: नमो का मनो परिवर्तन?August 29, 2014 elcidharthWorld is watching every move PM Modi makes. From his original slogan, ‘Make in India,’ referred to foreign manufacturers of highly developed military, Naval and air-defense equipments and their accessories. With some state partitionitial FDI limit raised from 26% to 49%. There was a loose talk about raising it to 100%. Mohan Bhagwat’s phone call must have killed that possibility. Another ‘कबाब में हड्डी,’ issue was Modi’s firm insistence on ‘technology transfer,’ killed any chance of major arms manufacturers, such as aerospace firms include Dault Aviation, Sukhoi, Mikoyan, EADS, Finmeccanica, Thales Group, Lockheed Martin, Northrop Grumman, Boeing, and BAE Systems, merely sneered at Modi’s proposition.Another angle could be, Indian lobby pulling strings, pushing politicians and local defense bosses. Oops, forgot all about corrupt ‘boxwallahs.’I am not against normal and proper lobbying. There is no such thing in India. When a bread is snatched away from a dog, watch for its canines. A rude comparison but applicable to any business enying back to ‘Make in India.’ The system is not ready, even when Tata claims it is. Tata also said that when they tried to manufacture their small car, Nano in Singur, West Bengalitial five year estimate is false. History confirms my doubt. Nothing ever turned according to initial estimates on costs and deliveries. Modi has a mandate and he may push people and buttons to get it rolling, sooner than MMS. He may even lead a mive and majestic, ‘Ganga Poojan.’ Helicopters fly but his ‘Make in India,’ helicopters may not.If I could make a comment, so can foreign investors. No go, Namo.Source: NDTV...and I am Sid Harth
    Reply
    1. M
      M. Parthasarathi
      Aug 19, 2014 at 8:58 pm
      The abolition of the Planning Commission is a bold step away from the centralised planning visualised by the Government when India achieved independence. At that time, it made a lot of sense as no private group had the resources to establish new units in major industries like steel and heavy equipment. Since then, however, indian industrialists have shown that they have the capacity to set up such units not only within INdia but even in other countries. Also, the shortage of resources for investment that INdia faced in the early days is no longer there. The Planing Commission had become another hurdle to be overcome in the path of industrialisation. Even in the early years, the Commission was used as adumping ground to accommodate people who were mostly glorified head clerks with original work farmed out to outside insutions. These latter have a vested interest in its continuation, acting as a brake on the innovative private sector that the country now has. So it was time for the Commission to go as it really had no real role to play.
      Reply
      1. U
        uma
        Aug 16, 2014 at 7:33 pm
        Its an excellent idea thatevery village and every school has toilet and that under the Sansad Adarsh GramYojana every MP/MLA spends his allotted fund to construct the same apartfrom the big Corporate houses under CSR funds. I have a few suggestions. I hopethis will be liked by every Indian who wants India to progress under Modi which they could not under the Dynastic rulefor last 60 yrs.I wish some body should bring this to the notice of the PMO forconsideration.1. In thelast few years we have seen that there is a huge clamour from every party toget election tickets. The ticket mongers are all millionaires except a countable no. of them. So every partyshould print a column in their ticket seeking application form as to how manytoilets under social responsibility have the candidate built? If no ,then theyshould promise that irrespective of whether they get tickets or irrespective ofwhether they win or lose they will construct atleast 5 toilets in the households in the village they hail from. Ifthe candidate is an urban ticket seeker then, he/she should adopt 5 householdsin any village of his/her choice /or in schools. This will complete the toiletbuilding. They must also see that water ,light and sewage connections areprovided and some minimum corpus fund is deposited with the village head fortheir maintenance. This will almost solve the problem before next 15th August.2. TheElection Commission Of India should also include a column in its application asto how many toilets have been built by the candidate and if none at the time ofapplying, they promise to do so in the within the next 6 months irrespective ofwinning or losing the election. Afterall those who seek to serve the country bybecoming MP/MLA should start from the Village level and start serving India.3. uggested by the PM, the Sansad AdarshGram Yojana fund can be utilized in building public and school library. Thereare n number of things to do in making a village Adarsh. The surroundingvillages be connected by good roads to this Adarsh Gram so that this Villagebecomes a smart/satellite Village.No politicsshould be looked into nor any party should claim credit for doing so. Afterallirrespective of party affiliations , all these ticket seekers are going tobuild healthy and hygienic India.
        Reply