One Year Of Modi Sarkar

India’s one-man band-The Economist

The country has a golden opportunity to transform itself. Narendra Modi risks missing it

A YEAR ago Narendra Modi came to office promising to bring India “good times”, by which he meant jobs, prosperity and international renown. His progress has been frustratingly slow. The problem is hardly a lack of opportunity. Voters gave his Bharatiya Janata Party (BJP) the biggest parliamentary mandate for change in 30 years. Mr Modi has concentrated more power in his own hands than any prime minister in recent memory. The problem is that India needs a transformation—and the task is too much for a one-man band.

 

There is no doubting Mr Modi’s conviction that India is about to achieve greatness, and he may well be right. Within a generation, it will become the planet’s most populous nation. It could be one of the world’s three largest economies. And it could wield more influence in international relations than at any time in its history. But, in his heart, the prime minister believes that only one man is destined to lead India down this path: Narendra Damodardas Modi.

Much has gone well, though serendipity shares the credit. Helped by oil prices, Mr Modi has presided over an improving economy. Inflation is down, interest rates are dropping, the rupee is stable, and fiscal and current-account deficits have shrunk. Official statisticians claim that India’s growth, at 7.5%, outpaces China’s—meaning the country has the world’s fastest-expanding large economy. Foreign direct investment is up. So are the prime minister’s visits abroad, where he cuts an impressive figure. This newspaper chose not to back Mr Modi in last year’s elections because of his record on handling religious strife. Though he fails to control the Hindu-extremist bullies who back him, we are happy that our fears of grave communal violence have so far not been realised.

But when it comes to reform, Mr Modi’s record is underwhelming—as our special report in this issue explains. The past year saw auctions of coal deposits. The past few days have brought the tiniest of baby steps towards privatisation: eight state-run hotels may be sold off. Mr Modi points out that foreigners may now invest more in railways, insurance and defence. He is cutting red tape to create a friendlier business climate. Poorer Indians will increasingly get cash welfare, not cheap rations in kind: since April the world’s biggest cash-transfer scheme has replaced artificially cheap canisters of cooking gas. Massive subsidies on diesel have been scrapped; whopping ones on paraffin should follow.

 And by encouraging people to open 150m new bank accounts, linked to a biometric database of 850m people so far, the government is creating a structure to provide better poverty relief.
As welcome as this is, it sells India short. Mr Modi is making two mistakes. The first is to think that time is on his side and that big unpopular decisions can wait, perhaps until he has control of the upper house as well as the lower one. That rests on a delusion among Indian leaders that they must consolidate power first and reform later. In fact a brief period exists in which to get change going, early in the parliamentary term.

Mr Modi already faces twinges of popular discontent. Surly voters drummed his party out in state elections in Delhi. Some dislike his attention to diplomacy overseas. This week he wrapped up a trip to China, Mongolia and South Korea, completing 52 days abroad in 18 countries over the past year. Others are put off by his narcissism, embarrassed that he met America’s president, Barack Obama, wearing a dark suit with all 22 letters of his name stitched over and over into its golden pinstripe. As he cracks down on groups like Greenpeace, some complain of his authoritarian streak.

The second mistake is for Mr Modi to think that he alone can bring about change. On the contrary, the only way for him to realise his aims is to draft in help. And it could come from three main sources—India’s states, other national politicians and the power of the market.

He has made a start by devolving some power to states. The idea is to create a manufacturing boom (though that would, at a minimum, also require wider changes to the way land is bought, labour hired and roads built). As they compete in setting priorities for policy and spending, the go-getting states will become models for the rest. Good policy will be rewarded thanks to a national goods-and-services tax that creates a common market—and hence competition—across India. Mr Modi says he wants the tax by next April, as promised, though parliament has just delayed it. The sooner, the better.

Unfortunately, national politics is a long way behind the states. Mr Modi cannot blithely assume his power will grow. The prime minister’s office cannot expand to do everything. It is time to relaunch his government by bringing in outside talent. Like the previous government, he should get in bright people from the private sector—especially as the BJP is short of capable leaders—to strengthen, say, the finance ministry and the corporate-affairs ministry. In parliament Mr Modi could sometimes compromise with the opposition Congress party, to rush through the sales tax, say, or make buying land simpler.

All together now

 

Lastly, he needs to use markets as agents of change. Mr Modi should lead a national campaign to ease the world’s worst labour laws. Perverse restrictions on domestic trade in farm produce should go. Private companies could compete to make the railways more efficient. Infrastructure must be built faster, which requires a better law on acquiring land. State-run banks should no longer be subject to political meddling, but recapitalised and put in independent, ideally private, hands. Foreign investors could raise standards in Indian universities. Across the woefully bad education system a focus is needed on

excellence in teaching and standards—easing the way for more private providers.  
Mr Modi acts as if a lot of small improvements add up to transformative gains. They don’t. He is still thinking like the chief minister of Gujarat, not a national leader on a mission to make India rich and strong. If he is to transform his country, India’s one-man band needs a new tune.
http://www.economist.com/news/leaders/21651813-country-has-golden-opportunity-transform-itself-narendra-modi-risks-missing-it-indias

One year of Narendra Modi as PM – a realistic assessment-By Rajesh Kalra -Times of India-20.05.2015

On May 15, 2014, as the nation waited for the general election results and it was almost certain that Narendra Modi would be the CEO of India for the next five years, I had recommended 10 things India’s new Prime Minister should do. With just over a year since then and the government about to complete year 1 in power, a lot has happened in the country.

 

Modi has traveled the world, his party, in coalition, has formed the state government in Jammu & Kashmir; BJP has had moderate successes in other elections but was routed in Delhi by the Aam Aadmi Party. Most visibly, the government, although having an absolute majority in the Lok Sabha, is struggling to take the opposition along in the Rajya Sabha, where it is woefully short in numbers, and that has meant several important legislations are stuck.

 

The last point is critical, for a lot of what the government wanted to achieve, in terms of what is visible, is stuck there as several legislations can’t turn into law. Not surprisingly, the opposition, hopelessly outnumbered in the Lok Sabha, has milked the upper hand here by staying in news, often by cleverly pandering to common emotions to give a twist to an argument. But this is no picnic. It is politics, where such things are par for the course, so no point blaming the opposition. So, given the circumstances, and that things cannot happen overnight, the expectations too need to be realistic. So, let us look at how our CEO has delivered on the ten points raised a year ago.

 

INFRASTRUCTURE PUSH
POWER: The situation is better if you hear the minister.  As he told this paper in an interview earlier this week, there is enough power now even though transmission bottlenecks are still a concern. However, the fact remains that the SEBs are a mess all over and he has no jurisdiction over them. His ministry is nevertheless seen as one whose work is perceived positively by the industry too. The rating therefore is bordering good.

 

ROADS: Given that the minister in charge of the sector is Nitin Gadkari, who has a more than decent record of delivering infrastructure as a minister in Maharashtra, things could have been better. Although the minister claims that the road construction is now up from 2 km/day during UPA government’s time  to 12-14 km/day, and may reach 30 km/day in 2 years, the progress is not really visible. To be fair to the minister, the land acquisition bill being stuck is an impediment too.

 

And while it is a fact that you need land for any infrastructure project, be it roads or airports or what have you, the government has surely failed here by allowing it to  turn into a poor vs rich debate. Strangely, the party which prided itself in its perception management capabilities, finds itself being cornered. The government’s attempts to address this issue academically failed, bombed rather. This is one area the government has to work extra hard. The opposition has milked it well and effectively, and the moniker that it is a government for the rich has struck, at least for now. The rating on infrastructure, therefore, would be good.

 

SHUN CRONY CAPITALISM, THROW OUT ‘PERMANENT FIXTURES’ FROM TOP LEVEL COMMITTEESThis is one area where things have, unfortunately, been the same. It is almost as if the country has only that many visionaries, the visionaries who have a lifetime right to the powerful committees that the government forms and they alone have the wisdom to solve this nation’s ills when they put their heads together. Perhaps the oft-repeated point of funding of elections is the reason. For, irrespective of who is in power, they need huge amount of unaccounted money and the nexus that entrenches itself in the system once, then feeds on it and invariably has more to give to ensure it is retained in the power circles. This practically shuts out the doors for any other entrant, who must join ranks with those already in and must play the games as per the rules already set. The rules that promote cronyism.

 

The performance on this count, therefore, is very poor and the sooner the government realizes it, the better it would be.

 

TACKLE CORRUPTIONThere is a general perception that political corruption has gone down, a fact accepted by businesses too. But while that may have gone down, the corruption that touches the common man directly, the petty corruption, continues, be it police or government agencies and all else. It is this that made people believe that Arvind Kejriwal can perhaps help them with, resulting in that historic mandate for the Aam Aadmi Party in Delhi.

Even as one says this though, the stories of the PM personally monitoring who all his ministers meet, and clear instructions to stay away from businesses and not meeting them anywhere except through official channels  has been received well by most.

The interview of the BJP president on the completion of one year in office, that has appeared in this paper is of interest.

The rating on this important aspect, therefore, would be average to good.

 

IMPROVE HUMAN DEVELOPMENT INDEXToo early to comment on this, but there is no denying that there have been initiatives galore, which, once they start showing the result, should result in a dramatic improvement. I particularly like initiatives such as Swachh Bharat and toilets for all and access to banking for all etc. One sincerely hopes that those who have to implement these schemes are as committed as the Prime Minister himself is. And above all, the common man himself has to realize what is in it for him. There is a long way to go still, but it is a great beginning. The rating on this count, therefore, would be good+.

 

HEALTH AND EDUCATIONIt perhaps can be linked to the point above and there seems to be some work on this aspect. Once again, it is too early to comment, but Swacch Bharat missions and likes would go a long way in improving the general health.

 

Other than that, however, the increasing dependence on expensive private medical care is an issue that the government needs to look at. The common perception is that healthcare is going out of reach of the common man. For example, a story in this paper earlier this week, that a stent imported for Rs 25k is being old to the patients for Rs 1.55 lakh  proves this point. And whatever is made available to the common man at affordable costs, is of dubious quality. So, the rating here would be average.

 

As for education, the sector, which is critical for nation’s growth, it has been in news more for the controversies the minister has found herself in than real work. True, it does seem at times that the minister is being singled out  and is being targeted unfairly, but isn’t that something the government has to manage? And if her being made the minister was going to result in such issues, it should either have been predicted and steps taken, or someone else should have been given the task. The rating here too would be so-so.

 

BUILD A SCIENTIFIC TEMPEROther than speeches and the stupendous success of our mars baby, Mangalyaan, there isn’t really much to write home about. Perhaps it is linked to how the HRD ministry has worked too. Also, some of the inane statements being made by some biggies are more folklore and less science. In that respect, therefore, the achievement on this count would be poor.

EMPOWER YOUTHPerhaps early days yet, but can’t think of anything significant on this.

 

PUNISH OFFICIALS AND MINISTERS WHO DON’T RESPECT LAWAlthough there have been instances of more and more ministers trying to lead a more normal life than a VIP, the PM has had more than the needed share of motor-mouths. In April this year, the civil aviation minister stupidly said he carries banned stuff when he flies because none checks him being a minister. First to do wrong, and then have the temerity to brag about it! The PM needed to censure him publicly. Not sure if that happened. And then earlier this week,  union minister Ramkripal Yadav tried to enter the Patna airport terminal with his entourage through the exit gate. The CISF lady guard there stood her ground and refused. In a country where the ability to break rules is often equated with one’s clout, the lady did a great job. And if the PM wants his ministers to behave like common men, indeed their servants, what Yadav did was condemnable. Hope he takes him to task, strongly.

 

On this count, therefore, since there have been some ministers who steadfastly follow all rules, travel ‘cattle class’ and even pay their own money when on private visits, I would rate the performance as average+.

 

DON’T SINGLE OUT COMMUNITIESThis is one area where again, despite the PM’s repeated assurances, the perception management has been weak. True, there has been some over-the-top coverage of some of these attacks and I think the political parties, and even media, are guilty of terming every act of vandalism as communal, the utterances of some ministers and party colleagues hasn’t helped the cause much.

 

Let us be honest, this is one area where Modi is being watched more than anyone else, and he needs to work harder at reigning in the so called ‘fringe’ elements than he has done so far.

So, even though there have been no major flare-ups in the country, the inability to manage perceptions well would give him no more than average on this count.

 

RESTORE OUR RIVERSA lot of talk with little to show on ground, except in Varanasi where, by every account, the ghats are better than they have ever been. However, our rivers are far more important than ghats in one city alone.

 

Again, however, this is a long term and by all accounts, there is seriousness. In fact, as reported in an exclusive story in this paper earlier, there is talk that the government may soon make polluting rivers a ‘crime’.

Having met a number of people, I can say that the seriousness on this issue is genuine and since this is a project that takes some time to show results, I would rate the performance here as good.

 

As I said a year ago, the proof of the pudding is in the eating. The PM and his team have to show that they are here to govern, not rule. Fortunately, for the PM, that is a perception that he is good at governance has not deserted him, yet. But he surely needs to work harder at maintaining it. And after a while, people will go beyond perceptions and expect results on the ground.

 

Modi government's 1-year in office: 8 achievements highlighted by FM Jaitley -Economic times

NEW DELHI: Finance Minister Arun Jaitley rated his government's one-year performance as more than satisfactory, terming NDA's quick decision-making in the face of obstructionism as its biggest strength in this period. Addressing the media, Jaitley said his government's initiatives in sectors such as power, coal and mining shows its intent to run a transparent model for reforms, which he said is important for a country which is not ready to accept slow decision making.

Here are key things that he highlighted about NDA government's one year in office:

1) Foreign policy: "Not only in India, but in the entire world, respect for India and PM Modi has gone up. Our PM visited 18 nations and interacted with world leaders, which is why India now occupies a pre-eminent place in the global arena."

2) On government functioning: "Initiatives undertaken in sectors such as power, coal and mining are noteworthy, they show a transparent model for reforms. The previous environment of gloom has been replaced by a climate of enthusiasm. Decisiveness even in the face of obstructionism has been an important hallmark of the NDA government. There is absolute clarity with regard to which the direction in which the government wants to go. Decisions have been taken to bring in transparent and principle-based, not person-based, decisions."

3) On taxation: "India should have a tax on company profits that is more consistently applied than it is now and should bring down its effective rate to global levels. We must remove discretion, phase out exemptions and bring the effective rate down to global levels."

"I hope the Rajya Sabha would soon pass an enabling amendment that would make it possible to implement a new goods and services tax next April that would unify Asia's No.3 economy into a common market."

4) On administration and federalism: "A very important highlight of the government has been to give a corruption-free administration to this country. "

"The government has strengthened the system of federalism. NITI Aayog has been constituted as an important pillar of the government's initiative to strengthen federalism. Revenue realized through coal auctions shall go to states, an example of cooperative federalism. " On fiscal deficit: "Management of the fiscal deficit as well as its quality is equally important. Resources for major infra projects are available in abundance, our capacity to spend them must now increase. Important parameters like fiscal and current account deficits, growth rate, revenue figures etc have stabilized."

5) On black money and abuse of power: "The abuse of investigative agencies is now a thing of the past. Will continue to squeeze black money generation by passing more legislation in coming year."

 6) On infrastructure: "Resumption of work on 16 stalled projects planned for coming year. Government has decided to increase public investment in agriculture (specifically irrigation) and rural infrastructure."

7) On Banking and insurance: "Banking sector was under a lot of pressure due to the global slowdown. Appointments of executives and board members of banks have been professionalized. The new insurance schemes launched by the government have reached

7.5 crore people in a few weeks. The insurance schemes will bring the benefits of insurance to the common man."

8) On Savings: "India is an unpensioned society. Government schemes will improve upon the current pension cover of 11%. MUDRA Bank will bring finance to 5.7 crore small entrepreneurs."

Read more at:http://economictimes.indiatimes.com/articleshow/47382088.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst