President’s address raises hope, expectations
As an outline of the Union Government's intent and policies, President Pranab Mukherjee's address to the joint session of Parliament on Monday demonstrated the Centre's determination and complete clarity of thought in tackling key problems that have come to haunt the country in recent years. The address also hinted at a new approach to age-old issues in a bid to shore up governance. While we have to allow the Government time to make good the promises it has made and the assurances it has given, two points must be kept in mind. The first is that since the people have voted in a decisive manner for the BJP-led NDA because they have high expectations from the combine led by Prime Minister Narendra Modi, they will settle for nothing but the best in matters of governance in general. This Government is not going to be judged by the lax yardsticks that had been applied to the earlier and much less formidable Manmohan Singh regime. The second point is that the people will want tangible deliverables on the ground in specific sectors that Mr Modi and his team have flagged as priority areas. They do not want words to remain just on paper — like it happened during the previous Government. But since all policies, programmes and plans of action begin with a declaration of purpose and a roadmap to move ahead in converting those declarations into action, Mr Mukherjee's Monday speech will remain a benchmark with which to judge the NDA regime.
There are many specific takeaways. For instance, the address clearly indicated that foreign direct investment would be enhanced in the defence sector. President Mukherjee said that the Government would provide a “large share” for private players in the defence industry. This is heartening, just as the announcement that FDI would be welcome in other areas where large-scale “jobs and assets” could be created. The other firm indication of a change is with regard to the tax regime. The President announced that the Government would not just “rationalise the tax regime” but also ensure that the rules are “predictable, transparent and fair” — a clear hint that mid-way changes in tax rules through retrospective amendments, unlike in the past with the UPA regime, will not happen. The third major takeaway is on internal security. Mr Mukherjee said the Government would complete the fencing work along the borders to check illegal migration into the country through the North-East. This is significant because it comes with the declaration that the issue of infiltration and illegal immigrants in the North-East will be tackled as a “priority” area.
Given that the Prime Minister has underlined his commitment to the revival of agriculture and the agro-based sector, the President's address announced a slew of measures to kick-start what is the backbone of our economy. We can expect a larger flow of funds in agro-based infrastructure, including irrigation (with a new, dedicated scheme), through public and private interventions. The other area which will not be short of funds is education, where the President hinted at big changes, ranging from the establishment of IITs and IIMs and “AIIMS-like” institutions across the country, to the formulation of a National Education Policy with emphasis on research & development and the creation of synergy with skill development.
Rather appropriately, the President flagged the issue of inflation in the beginning of his address, and expressed the Government's commitment to improve the supply side of agro-products, drastically reform the public distribution system to contain hoarding and prepare a contingency plan to tackle the impact of a “sub-normal monsoon”. While these are welcome words, the Government will need political will to convert them into action since several vested interests will do their best to throttle the efforts. There is no reason to doubt the Modi-led regime’s will-power and capacity.