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One year of Modi government
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Bikky Khosla | 02 Jun, 2015
The Modi government has completed its first year and a reading into developments in the economy during this period certainly gives us a positive picture. When the NDA came to power after winning a high decibel election campaign, expectations from it were unrealistically high and the real achievements now hardly meet them, but it will be wrong to deny the government credit where it deserves. Everybody is expecting more, but the economy is much better off now than one year ago.
Some key economic indicators support this argument: consumer inflation is at 4.87 percent and wholesale inflation is at (-)2.65 percent in April; fiscal deficit is contained at 4 percent of GDP in 2014-15; total foreign exchange reserves touched a record high of USD 351.86 billion for the week ended May 1. In addition, rise in business confidence, curb in high-profile corruption, successful regulatory clearance in major areas such as roads, mining, power and telecom, etc. are some major achievements of the current government.
Concerns still exist, however. Slow IIP recovery is one of them. Latest data shows industrial output growth of 2.1 percent in March, with manufacturing growth crawling at 2.2 percent. Electricity grew by 2 percent while mining by a measly 0.9 percent. Similarly, export is not in good shape. High interest rates, lack of government and private sector investment and weak job creation are some other major concerns. In addition, I think the Centre should work on a mechanism to tackle corruption at state and local levels.
In the backdrop of these challenges, I think some strong measures need to be taken urgently. First of all, the issue of interest rates should be addressed. The Indian industry, including the MSMEs and the small exporters, is in dire need of this. Second, steps to push government and private sector investment and generate employment should be prioritized. In addition, the Centre should step in to rescue the public sector banks by means of recapitalization. Also, reform must be pursued aggressively as the future growth trajectory will greatly depend on it.
Overall, the government has done a great job in bringing back people's aspirations. There is very strong leadership. Issues like governance, social security, financial inclusion, economic and legislative reforms, etc. have been approached in the right way. Also, globally the country is seen very differently today. The latest GDP figures tell the same story-- the economy is moving in the right direction. The building blocks are in place for faster growth and each successive year will be better than the previous one if the government continues its positive efforts in the coming days.
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Radhakrishna Maiya. | Thu Jun 4 16:26:13 2015
This govt must be there for one more term, then only 3 or 4 economic indicators can be bench marked to the contemporary best economies in the world and fulfilled or archived........., is it n't?. All the best to the NDA govt, right?.
One Year of Modi Government
Shyam Maheshwari | Thu Jun 4 11:50:01 2015
So many positive factors have been narrated in the article but unfortunately we do not see an iota of the same at the grass root level. On the contrary we find that the things have deteriorated for MSME as far as ease of doing business is concerned. Corruption at the local level has increased manifold. Besides bribery, reluctance to work in the public interest is also a kind of corruption.
Overall corruption & increase in exports
Nainesh Trivedi | Wed Jun 3 05:12:06 2015
There is general grievance on interest rates, restriction of movement by way of diff taxes in diff states & difficulties in getting skilled labour for industry. In spite of so many Engg colleges the standard of education is not on development but mostly on regular 9-5 jobs. How come we don't have any new inventions or R & D. We are creating knowledge just to make tailored people to get jobs & no new knowledge. Also the interpretation of law is in the hands of those who can be lured to become corrupt by interpreting tax laws as they think is correct. The rechecking of orders issued by officers would make them decide better as they will be answerable if during appeal they are asked to answer their justification of interpretation. Overall there is good governance & even honest officers are having free hand in cleaning entire system. I must say the industrial growth will start taking place in third year as overall benefits will be seen during that time. The earlier Govt including Prime Minister should have been more vigilant & could have prevented any scams. But whatever is gone cant be changed. Let us help Govt in making system clean by fighting for our rights & stop avoiding any taxes payable. Let us not be smart enough to evade taxes but honestly pay them & be ready for punishment but no corruption.
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| Customs Exchange Rates |
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Import |
Export |
US Dollar
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84.35
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82.60 |
UK Pound
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106.35
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102.90 |
Euro
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92.50
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89.35 |
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55.05 |
53.40 |
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