As the Narendra Modi
government completes four years of its first term in office and the nation
braces itself for the general elections next year, it is an opportune moment to
understand the inner motivations of the government that shape its policies and
workings. The victory of the Narendra Modi-led BJP in the 2014 general
elections was a tectonic shift in Indian politics. The mandate was a rejection
of incrementalism in favour of transformative changes. Modi was voted to power
on the promise of accelerating economic growth, creating corruption free
environment and achievingparticipative development.
ECONOMIC PHILOSOPHY:
The Modi government believes in
being fiscally responsible, increasing efficiency of government expenditure and
makes laws and policies that favour empowerment over entitlement.
Within the ambit of this
philosophy and guided by “Antyodaya”, the government is unabashedly pro-poor.
Committed to address the challenge of slow economic growth and inequality, the
government is not dogmatic about the instruments that should be used. This is a
clear shift from the policy of doles and entitlement followed by the UPA
government.
Focus on infrastructure spending
and increased allocation for economically disadvantaged sections of society
required higher governmental spending. Achieving this, while at the same time
reducing fiscal deficit, called for increasing the tax to GDP ratio. Towards
this goal, government implemented the Goods and Services Tax (GST), which is
the biggest tax reform since Independence. GST has broadened the tax base by
creating a system where registration, filing, assessment, credit and refund are
all online, with little scope for subjective intervention and harassment.
Inflation is tamed and fiscal
deficit is controlled by government by taking strong policy decisions. The
government has tried to address the all pervasive corruption through steps like
demonetisation, direct benefits transfer (DBT), Jan Dhan accounts, Benami
Properties Act and increased transparency in governmental working.
Deregistration of shell companies, renegotiation of bilateral tax treaties,
Income Disclosure Schemes (IDS) have been other steps in this direction.
Business transactions through banking channels are being encouraged so that
they leave an audit trail.
The Insolvency and Bankruptcy
Code (IBC) has been one of the biggest reforms in the factors’ market.
Promoters of defaulter companies are facing a real challenge of losing control
over their companies. The successful resolution of the NPA of Bhushan Steel
Limited under the IBC is going to be a game-changer for the banking sector.
Financial Regulation and Deposit Insurance (FRDI) Bill seeks to create an
institutional setup to resolve distress in financial institutions, but is
facing opposition from the Congress party.
The kleptocracy that was UPA, had
led to a disappointment in the international community about the future of
India. A hallmark of the current government’s foreign policy has been the
concerted attempt to dispel this image and to assure the global community that India
will realise its true potential. The trust of the global community is
vindicated by the ever rising foreign direct investments (FDI) in India.
SOCIAL PHILOSOPHY: When it comes
to the social dimension of its programmes and policies, the Modi government believes
in scale, speed and the power of mass movement to realise the objective of
social uplift.
A sanitation campaign under the
aegis of “Swachh Bharat Abhiyan” is to provide a life of dignity and honour to
the poor, irrespective of their religion, caste or gender. The “Beti Bachao
Beti Padhao” initiative of the government seeks to provide equality of status
and opportunity to our daughters. The government has been successful in
creating awareness and public participation. The Modi government’s stand in the
Supreme Court in the matter of triple talaq flowed from its conviction that the
practice was unconscionable and did grave injustice to Muslim women.
POLITICAL PHILOSOPHY:
“Sabka Saath Sabka Vikas”, which
loosely translates as a government that enjoys the support of every section of
society and that works for the development of all, is the credo of the Modi
government.
The Modi government is not guided
by narrow electoral considerations.The difference with the working of the
Congress led UPA is too obvious to be missed. The Congress government, during
the period of 2004-2014, tried to institutionalise the cleavages of Indian
society with the hope to reap electoral gains. It made all attempts to pass a
“Communal Violence Bill” that was manifestly against Hindus as was the Right to
Education Act, which exempted only minority educational institutions from its
ambit, creating an incentive for various sects to dissociate from Hinduism. The
UPA government had also constituted the Sachar Committee for Muslims and was
trying to make changes, which it clearly knew to be unconstitutional. A
completely fabricated narrative by the name of “saffron terror” was sought to
be developed by the Congress government in order to consolidate Muslim votes.
The Modi government believes that
responsive and effective governance also ensures electoral success. Thus, so
far as the government is concerned, it should respect the mandate of the people
by focusing on doing its job. It also firmly believes that good economics is
good politics. Unlike earlier governments, the Modi government has not created
vested interests for a limited number of people in its continuation. The
government has created higher benchmarks and evaluation matrix for fixing
accountability and is willing to defend its performance.