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 11:51:56 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 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




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




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




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




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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