High hopes brought the Narendra Modi Government to power. In its first 100 days in office, the new regime has retained the people’s faith and also won over the markets. Now, it must deliver on its electoral promises
Prime Minister Narendra Modi has struck a contrast with the UPA’s Manmohan Singh, instilled confidence in the market, and given hope to the common man for a better economy. The country believes that Mr Modi is in control of his office, the Government and the party — unlike Mr Singh, as per popular perception.
This is possibly Mr Modi’s biggest achievement given before taking over as Prime Minister he had not served a day in the Union Government or sat in Parliament. The 100-day perception in that sense has been unique. The Union Government has barely started functioning but it has received rave support from the masses across various surveys. The nation’s faith in the Government has been reinforced.
Take, for example, the the Hindusthan Samachar nationwide survey of 51,440 people in 18 States. It shows that Mr Modi is popular with 67 per cent of the people, 65 per cent feel of the people feel that Mr Singh is no match for him, but 86 per cent feel that high prices remain a worry and pose a challenge to the new Government. Other surveys too have pointed out that price rise is a common concern.
On the foreign policy front, Mr Modi has scored well. His pulsating Japan visit has brought promises of $35 billion in investment; his friendly visits to Nepal and Bhutan and his decision to call off talks with Pakistan have been well-received. The surplus $11.2 billion in the balance of payments and the indication that industrial production may rise have added to the confidence.
Mr Modi certainly is not responsible for the inflationary economy. The UPA Government since 2009 did little to control the problem. That, however, is no relief for the new regime, which has come to power on a viral campaign against rising prices. It has raised hopes that once the new Government is in the saddle, it will bring prices down. The wholesale price index has indicated some downward trend but retail prices remain a sore point.
Surveys indicate that people are not willing to wait for more than a year to see that poll promises become a reality. While people welcomed the scrapping of the Four-Year Undergraduate Programme of Delhi University, supposedly the precursor to a more expensive higher education system, they now want the Modi Government to crack down on so-called public schools, many owned by corporates, so that pre-primary, primary and secondary education can be affordable. They also want the Government to ensure that technical education, like engineering and medical, is completed in three years.
People believe that this Government can act for the betterment of every one, so why not have a three-year technical education topped by a one-year post-graduation programme. It will bring down the family’s burgeoning burden of educating children.
As one drives down to the national capital, toll gates create barriers. During the election, the BJP raised hopes of removing toll gates across the nation and scrapping income tax. The people are hoping that it happen by the next Budget.
Cutting down on unnecessary expenses and reducing commodity prices will boost the capacity of each family to spend more in the market. That has to be philosophy of the market. But if everything is charged at super commercial rates, people are robbed of their income and impoverished. This means that the nation will have to live in penury.
If the Government wants factory output, which is now touching a critical low, to go up, it must raise the income tax barrier from around Rs25,000 a month to at least Rs1.25 lakh a month — Rs15 lakh a year — by the next Budget. It must also get the World Trade Organisation rules changed for increasing tariff barriers for silly imports, and draw up a new revolutionary economic policy for the country.
For a better future, the Government has to carve out an economy that is innovative. The working class has not liked the Union Cabinet’s approval for so-called ‘labour reforms’, a euphemism for dealing with workers in a harsh manner. Industry groups and other employers’ groups want such reforms to be fast-tracked. They forget that during the past 10 years, lakhs of workers lost their jobs or were employed on a casual basis, flouting basic legal norms.
This Government, which was voted to power by the working class, has to ensure that employers pay proper (not decent) wages, treat workers with empathy, and extend at least minimum benefits.
The country has too many expectations from Mr Modi. The GDP has started moving faster, the National Council of Applied Economic Research’s business confidence index has risen by 13 per cent, and manufacturing grew by 3.5 per cent in June. With a pro-poor and pro-worker policy one hopes, Mr Modi will bring back the smiles.