Business Economics & Services Team (BEST)
It is Time for Modi to be Firm on Development Agenda
Modi Administration is making the right noises both in India and abroad. But the trillion dollar question is whether it will help fructifying the results. Admittedly, the administration's effort is to make India a happening place and is going all out to launch a host of programs, policies and legislation to convey that message loud and clear. Those who are criticizing the government that there is no original thinking in its polices should admit that Modi administration has succeeded in sending strong message to the bureaucracy that it should shun lethargy and delay tactics and getting on to its business. At least, the signals that are coming from the corridors of power stand testimony to that. Not many officials are on junket abroad so also the ministers who in the earlier dispensations used to travel abroad and that too in chartered aircraft. They used to take plane loads of journalists along with them in a surrogate manner, seeking the help of business associations to foot their bill and later reimbursed to them much more than the expenses incurred by them. Also, the lower bureaucracy is dot on time to the office to mark their attendance and shun taking French leaves for fear of being caught.
These are cosmetic changes and often dubbed as the handiwork of a headstrong headmaster, who knows how to control the pupils at the tip of a cane. It will be a good augury if the bureaucracy develops a new mindset and should make 'work hard' as a habit and not when they are compelled to that. But what they are doing during the work hours are not known much. Many corporate honchos privately confide that not much has changed in the way in which the government decisions are taken. They complain that even some of the senior ministers are scary of taking decisions since they feel that they are often upstaged by PMO or being questioned by them even for minor decisions that are taken. Their interactions with media and the stakeholders like industry, pressure groups etc are infrequent and they often try to evade important questions posed to them. Those ministers who spoke out of turn and without being circumspect are pulled up.
The other important stumbling bloc that Modi administration is facing is the lack of cohesiveness in its articualtion. While the prime minsters office and council of ministers, barring a few, are trying their best to put across development before all other goals, the splinter groups within the party are creating a well orchestrated campaign to downplay the development agenda. They are ferreting out all issues except the development ones and trying to taking the country back to the 18th century. Many feel that the development agenda will be de railed when there is a preponderance of social unrest, law and order problems and insecurity among various sections of the society. For instance, they feel that the perceived or alleged stand against Muslims and Christians can send wrong signals to the Middle East and the developed world, which can considerably affect the flow of investments and businesses from these regions, which are rich in capital. For instance, they point out that despite the forward looking polices of the government in many areas, there has not been any appreciable flow of investment, during th last months or so. On the other hand, there has been drop in investment from countries like Japan, which are taking a wait and watch approach before committing their funds. Also, the investment by FIIs and private equity funds can take a negative turn once the interest rate in the US increases, which is quite possible in the coming days.
Not that Modi Administration is not aware of these developments. But it is buying time to use the stick against these sections within its party fold. Now it is time to take the inevitable step since the next election to the assembly is in 2016, except that in Delhi, where such forces cannot upset the election calculations. Even if Delhi elections adversely affect its election prospects, it should act fast, for lack of action will be interpreted as thumps down to development agenda, a plank on which the Modi government has been elected to the office.
It is Time for Modi to be Firm on Development Agenda
Modi Administration is making the right noises both in India and abroad. But the trillion dollar question is whether it will help fructifying the results. Admittedly, the administration's effort is to make India a happening place and is going all out to launch a host of programs, policies and legislation to convey that message loud and clear. Those who are criticizing the government that there is no original thinking in its polices should admit that Modi administration has succeeded in sending strong message to the bureaucracy that it should shun lethargy and delay tactics and getting on to its business. At least, the signals that are coming from the corridors of power stand testimony to that. Not many officials are on junket abroad so also the ministers who in the earlier dispensations used to travel abroad and that too in chartered aircraft. They used to take plane loads of journalists along with them in a surrogate manner, seeking the help of business associations to foot their bill and later reimbursed to them much more than the expenses incurred by them. Also, the lower bureaucracy is dot on time to the office to mark their attendance and shun taking French leaves for fear of being caught.
These are cosmetic changes and often dubbed as the handiwork of a headstrong headmaster, who knows how to control the pupils at the tip of a cane. It will be a good augury if the bureaucracy develops a new mindset and should make 'work hard' as a habit and not when they are compelled to that. But what they are doing during the work hours are not known much. Many corporate honchos privately confide that not much has changed in the way in which the government decisions are taken. They complain that even some of the senior ministers are scary of taking decisions since they feel that they are often upstaged by PMO or being questioned by them even for minor decisions that are taken. Their interactions with media and the stakeholders like industry, pressure groups etc are infrequent and they often try to evade important questions posed to them. Those ministers who spoke out of turn and without being circumspect are pulled up.
The other important stumbling bloc that Modi administration is facing is the lack of cohesiveness in its articualtion. While the prime minsters office and council of ministers, barring a few, are trying their best to put across development before all other goals, the splinter groups within the party are creating a well orchestrated campaign to downplay the development agenda. They are ferreting out all issues except the development ones and trying to taking the country back to the 18th century. Many feel that the development agenda will be de railed when there is a preponderance of social unrest, law and order problems and insecurity among various sections of the society. For instance, they feel that the perceived or alleged stand against Muslims and Christians can send wrong signals to the Middle East and the developed world, which can considerably affect the flow of investments and businesses from these regions, which are rich in capital. For instance, they point out that despite the forward looking polices of the government in many areas, there has not been any appreciable flow of investment, during th last months or so. On the other hand, there has been drop in investment from countries like Japan, which are taking a wait and watch approach before committing their funds. Also, the investment by FIIs and private equity funds can take a negative turn once the interest rate in the US increases, which is quite possible in the coming days.
Not that Modi Administration is not aware of these developments. But it is buying time to use the stick against these sections within its party fold. Now it is time to take the inevitable step since the next election to the assembly is in 2016, except that in Delhi, where such forces cannot upset the election calculations. Even if Delhi elections adversely affect its election prospects, it should act fast, for lack of action will be interpreted as thumps down to development agenda, a plank on which the Modi government has been elected to the office.
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