Spate of Indian Economy

People had high expectations from NDA regime which stormed into power with record high electoral majority in past three decades. Now, with elections just a year away, the performance of NDA government headed by Modi is critically analysed along various fronts with a key focus on economic arena. While four years is short period to expect some major breakthroughs, NDA government made fervent efforts to revive, resurrect and reinvigorate Indian economy which was reduced to shambles under the decade long UPA government. Unfortunately, the NDA government, instead of producing a white paper on economy effectively disclosing the massive discrepancies in Indian economy, took a deep plunge to reform the economy. It introduced a series of economic reforms like Demonetization, GST, Insolvency and Bankruptcy code (IBC) and re-capitalisation of state-owned lenders have made a positive impact on the economy.  Of them, demonetization hugely impacted the growth rate and even slowed it. All the people who believed that economy would scale heights under Modi widely criticised government for this poorly executed disruptive move. Much to the anguish of the people, barely a year after the move, GST and demonetization together have infused fresh momentum into economy. Together these moves have increased tax base and tax compliance and now there is a surge in revenue collections.  Experts are now batting that labour reforms in conjunction to these above measures can substantially boost economy. But in a run up to elections, government which is focussed on agrarian stress have promised to increase Minimum Support Price (MSP) to alleviate farm distress.

Similarly, government’s initiatives like Jan Dhan Yojana, Ujjwala scheme, Direct Bank transfers, interbank transactions, Pradhan Mantri Jeevan Jyoti Bheema Yojana (PMJJBY), Pradhan Mantri Suraksha Bhima Yojana (PMSBY) and others are making meaningful impact on the lives of the weaker sections of the country. Clearly, while media is quite disapproving of the desirable impact of these initiatives, making a difference in rural household, the beneficiaries would by and large will go with BJP in the next elections.  Performance of NDA government in four years is not bad at all. This is just a beginning and government should continue to redouble its efforts.

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