Empowering poor to fend off ‘ secular’ threat
Aware that there is a huge public expectations from him to deliver, Prime Minister Narendra Modi has set his eyes on improving the basic condition of the people.
Even after 68 years of independence, there are basic facilities which are lacking in India’s towns and cities. It is here that the Modi government is looking to make a difference to make the poor feel that they are empowered and part of the main stream.
The glimpse of this vision came out during Mr Modi’s maiden Independence Day speech.
The first mega scheme launched by the Prime Minister is the Jan Dhan Yojana, which seeks to integrate the poor into the economic mainstream. Some 1.85 crore accounts were opened on the first day of the scheme. At the launch, Mr Modi pointed out that though years ago, the Congress government nationalised banks claiming that it will help poor, a huge population still doesn’t have a bank account. Under the Jan Dhan Yojana, poor will be able to get a basic bank account where they will not need to have a minimum balance. Along with the account will come a debit card, accidental insurance of ` 1 lakh and life insurance cover of ` 30,000. Those who operate their accounts satisfactorily for six months will get facility of a loan of ` 5,000.
Mr Modi believes that this scheme will ensure that people are able to save for rainy days and are able to build a credit history. Mr Modi said that a poor person doesn’t need to borrow more than ` 5,000 in normal situations and this facility will save him getting in the trap of money lenders. It will also save poor from the financial frauds like chit fund schemes.
As the poor are not integrated with the banks, they are easily lured by the ponzi schemes, which promise them sky- rocket returns. With a bank account, the poor will be able to save their money in nationalised banks. While there has been criticism of ` 5,000 overdraft facility, the Prime Minister believes that poor will pay back the money. The scheme plans to open 7.5 accounts before Republic Day.
The other basic facility which the Prime Minister is focusing is toilets. A Swachh Bharat scheme targets toilet for all in the countryside by 2019. This was outlined by Mr Modi in his Independence Day speech. It may appear strange but in India there are 8.84 crore households which still don’t have the basic facility of toilets.
The government is also looking at building broadband highways to connect villages.
Mr Modi, who effectively used the social media in his Lok Sabha campaign, knows the power of the Internet and modern communication facilities. This will enable e- governance and bring transparency in governance.
By bringing more and more government services online, the Modi government looks to cut corruption and red- tapism.
The main criticism of the high GDP growth had been that its benefit did not reach the poor.
To counter the jobless growth of the previous years, Mr Modi has set his eyes on reviving the manufacturing sector. The manufacturing sector is an important job creator for the poor. This is why the Prime Minister has given the slogan of “sell anywhere but make in India”.
The government is expected to announce sops for the special economic zones in the coming days and ease restriction on setting up new industries. To make young Indians ready for the manufacturing revolution, the government will give more emphasis on skill development.
While these steps will improve the situation of the poor, hopefully for Mr Modi, these will also bring economic dividends just in time before the next general elections.