President Pranab Mukherjee
Unveiling the agenda of the Narendra Modi government, President Pranab Mukherjee in his address to the joint sitting of Parliament has said the country is passing though “extremely difficult” phase but the new regime will push economic reforms besides focusing on curbing food inflation, encouraging FDI and introducing a non-adversarial tax regime with a view to revive sagging growth. The new government, the President pointed out will also take action against hoarding and black marketing and all make all out efforts to bring back black money stashed abroad. The agenda also includes Goods and Services Tax (GST) roll out, expediting project approvals and reforming coal sector. Noting that the economy is passing through an extremely difficult phase, Mukherjee stressed: “We will work together to usher our economy into high growth path, rein in inflation, reignite the investment cycle, accelerate job creation and restore the confidence of domestic as well as international community in our economy.” Referring to the high food inflation, Mukherjee said the new government will give “top most priority” to contain it. The government will take effective steps to prevent hoarding and black marketing and reform the public distribution system, he assured. On the possibility of a subnormal monsoon this year, he said, the government was seized of the problem and was preparing a contingency plan to deal with the situation. The Indian Meteorological Department (IMD) has forecast a below-normal monsoon this year because of the El-Nino effect. “My government is alert about the possibility of a subnormal monsoon this year and contingency plans are being prepared,” he said. With 60 per cent of farm land being rain fed, he said the government would “complete the long-pending irrigation projects on priority and launch the ‘Pradhan Mantri Krishi Sinchayee Yojana’ with the motto ‘Har khet ko paani’. Talking about the taxation system, Mukherjee said the government will endeavour to “create a policy environment which is predictable, transparent and fair. It will embark on rationalisation and simplification of the tax regime to make it nonadversarial and conducive to investment, enterprise and growth”. He further said the government will move ahead with the roll out of GST while addressing the concerns of the states, and undertake more reforms to enhance the ease of doing business.
The government, Mukherjee said, will endeavour to create a policy environment which is predictable, transparent and fair. “It will embark on rationalisation and simplification of the tax regime to make it nonadversarial and conducive to investment, enterprise and growth,” he added. As far as the contentious issue of black money is concerned, Mukherjee said the Modi government will engage with foreign ountries to bring back the ill-gotten money stashed abroad. The President said the government is determined to rid the country of the scourge of corruption and the menace of black money. “As a first step in this direction, the government has already constituted a IT to unearth black money stashed abroad. This will be followed up vigorously by proactively engaging with foreign governments,” he said. He further said that Foreign Direct Investment (FDI) will be encouraged in sectors which “help create jobs and assets”. In order to create jobs, he added, the government will promote labourintensive manufacturing and endeavour to expand employment opportunities in tourism and agrobased industries. The government will transform employment exchanges into career centres and also strengthen pension and health insurance safety nets for labour force of all categories, in addition to providing them access to modern financial services, Mukherjee said. Giving more details of the agenda, Mukherjee said effort will be made to increase public and private investment in the farm infrastructure and convert farming into a profitable venture through scientific practices and agritechnology. The government “will adopt a national land use policy which will facilitate scientific identification of non-cultivable land and its strategic development”, he added. Mukherjee said India needs to transform itself into a globally competitive manufacturing hub powered by skill, scale and speed. To this end, the government will set up world class investment and industrial regions, particularly along the Dedicated Freight Corridors and industrial corridors spanning the country, he said. On the power front, Mukherjee said the government will come out with a comprehensive National Energy Policy. The aim of the government will be to “substantially augment” electricity generation capacity through a judicious mix of conventional and non-conventional sources, he added. The government will also work
towards expanding the National Solar Mission. He further said the government will raise investment in agriculture, both public and private, especially in agriinfrastructure. Steps will also be taken to convert farming into a profitable venture through scientific practices and agritechnology. Elaborating on the coal sector reforms, he said it would be taken up with a view to attract private sector investment in a transparent manner. “Reforms in the coal sector will be pursued with urgency for attracting private investment in a transparent manner,” Mukherjee added. The President said India needs to transform itself into a globally competitive manufacturing hub powered by skill, scale and speed. To this end, the government will set up world class investment and industrial regions, particularly along the Dedicated Freight Corridors and industrial corridors spanning the country, he said. “My Government will encourage the domestic industry to innovate and collaborate internationally. It will strive to move towards a singlewindow system of clearances both at the Centre and at the States through a hubspoke model,” Mukherjee added. To strengthen India’s share in global trade, he said procedures will be simplified and trade infrastructure strengthened so as to reduce transaction time and costs. The small scale industry and handicraft sectors will be encouraged by providing them enhanced technological, marketing and investment support. “Export potential of this sector will be encouraged. My government will make every effort to improve the working conditions of our weavers in particular,” he said. As expected, India Inc praised the agenda of the Modi government as spelled out by the President describing it as insightful and praiseworthy. “President has laid out an insightful and aspirational vision for the country, bolstered by comprehensive and multi-dimensional measures aimed at reining in inflation, boosting agricultural productivity and kickstarting the investment cycle,” CII President Ajay Shriram said. FICCI President Sidharth Birla opined: “We hope the government will soon devise a national agenda for job creation across sectors and regions, essential for social development and stability. The government’s road map for strengthening social, civic and physical infrastructure is praiseworthy.” The agenda of the Modi government is no doubt impressive and also BJPled NDA government has the people’s mandate in the form of requisite numbers in the Lok Sabha to translate it into action. However, one will have to wait for few more months to see how the Modi government goes about implementing it and fulfilling he hopes and aspirations of the people for better days.