Part 3 of series on #modiplan
Excerpts from article https://raverantreflect.files.wordpress.com/2015/10/pm-modis-game-planver1.pdf published on Oct 8, 2015 and some updates . The above article was written before the Bihar Elections and the stunning defeat of Modi.
Signs of good progress in security and economy
India has done very well under PM Modi in many areas. His foreign policy has helped improve external security environment. It has also secured substantial economic gains (surging FDI, for example) . PM Modi’s foreign policy has been an outstanding success. Our relationship with neighbors are much better, except Pakistan. Also, Nepal is a recent concern. Defense capabilities are being swiftly augmented with faster decision making. Terror attempts are being foiled and terrorists are being caught. We have also seen success in a unprecedented cross-border action (Myanmar) Modi-Swaraj-Doval and their teams have done very well.
Domestically, many areas have improved. The power situation is much better. There were no summer blackouts this year -helped by Coal India’s revamp among other things. Ultra High Power projects, Solar Energy parks (ambitious targets), and Oil Exploration projects are being pushed. So we should see good deal of additional energy availability in long term. The only area lacking progress here is the distribution sector which is lossy and unable to pay for power. The road construction (Highway sector) has picked up pace. The Railways are showing signs of a new life. I see pictures of clean bogeys and stations on twitter. Modi Sarkar is pushing project implementation -this year’s project starts and project spending is more by 50% over last year. The FDI is showing healthy trends (the best globally) thanks to Modiji’s travels and excellent salesmanship of Make in India’. State governments like Rajasthan, MP, AP and TN are showing greater urgency in attracting investments. And one takes Gujarat for granted. They are also amending laws where necessary. All these and such things by themselves should give a boost to economy and job creation in short (this year) and medium term( next year)
Then there are bigger things that will ensure buoyant economy and well being of those who desperately need help. These are known as J. A. M. : Jan Dhan financial inclusion program, Aadhar unique identity card and Mobile Governance.
“As a part of this effort, the program Govt. aimed to provide 75 million unbanked adults in India with accounts by late January 2015. As of September 2015, about 180 million accounts had been opened; about 44 percent of these accounts did not carry a balance, down from about 76 percent in September 2014. ” (source http://www.brookings.edu/blogs/techtank/posts/2015/09/09-fdip-report-results-india )
The potential benefits of direct subsidy transfer to bank accounts, linking of insurance, and small loan accounts are ‘huge cubed’. They will go beyond savings in subsidy leakage. You clean up embedded corruption, bring the poor in economic activity helping them to carry out their livelihood earning trades, and provide them small succor -all in one stroke. The positive energy unleashed at the grass root level will be unprecedented in India.
Though the Rural Optical Fiber Broadband network project is stuttering, I expect big push to it because it is a part of the J.A.M. architecture. The Digital India initiative has received a huge thumbs up by Silicon Valley biggies (Google, Microsoft ) and professionals alike. The country’s digital and communications infrastructure should see a big overhaul in the long term ( 2 to 3 years). The e-governance and e-services should also see increasing coverage.
All above are signals of economic transformation at the high levels of the economy (public infrastructure investments, FDI, and hopefully, over next two three years, investments by domestic corporate sector ) as well as at the gross root levels (through J.A.M.) The charge that Modi Govt is Suit Boot ki Sarkar is proven to be baseless.
The external security environment also has substantially improved. Pakistan is on back foot. China is being contained through the carrot of economic cooperation and a stick of strategic counterweights of Japan and USA. UAE has been persuaded for extraditing wanted criminals.
Thus there are signs of good progress in economy and security. Modi Sarkar’s big strength is implementation. This should help in keeping progress well on track.
I will describe the areas of concern in my next post.