FOR ECONOMIC STABILITY, MORE DRAVID, LESS SEHWAG

Over the last couple of years, the NDA government has adopted a break and rebuild approach to the Indian economy. Its favourite tools have been a wrecking ball and hammer. At no point has it shied away from inflicting serious near-term pain if it came in the way of radical overhaul of existing economic constructs. The merits and demerits of such an approach can be debated, but what is clear is that there have been consequences.

Large sections of the population have struggled under the weight of policies such as demonetisation, the real estate regulation act (RERA) and the initial GST format. While this has not triggered any adverse electoral fall out yet, there are murmurs of dis- content. The prime minister’s recent conciliatory, even defensive tone, suggests he is aware of these murmurs. Politically savvy as he is, he would also know that this simmering unrest comes at an inopportune time — right at the onset of an election season. Over the next 15 months, a series of important state elections lead up to the Lok Sabha polls of 2019, and political realities are now forcing a change of tack. The people of India need to feel good again.

First, came the farm loan waivers in Uttar Pradesh, Maharashtra and Rajasthan. Then, under mounting pressure on soaring fuel prices, the excise cuts on petrol and diesel. A substantial increase of 7% in the Minimum Support Price (MSP) of wheat — the highest in six years, is on its way. A mammoth bailout package of over Rs 2 lakh-crore has been announced for ailing public sector banks, with the aim of lowering stress for the struggling SME and agricultural sectors. On the GST, after being in denial, the recent move to reduce rates on 178

NEWS N OF THE WEEK

NOV 21: To end the political instability in Haryana, Rao Birendra Singh's Ministry is being dismissed and President's rule clamped on the State. This was decided because of the near-paralysis of the Administration as a result of repeated floor crossing by legislators.