ModiRaj 2.0: Good Economics is the only option remaining for 2024 Elections

ModiRaj 2.0: 

Good Economics is the only option remaining for 2024 Elections

By:

Vijay Sardana

Congratulations to Mr Modi and his team for changing the narrative of political discourses in India. Now onwards, in India, political calculations are over.

People have evaluated all political parties based on caste politics, dynasty politics, Hindutva, nationalism, women and youth card, health insurance, monthly income and MSP card are all used in 2014 and 2019. We all have seen what works and what does not work. Ultimately, the people of India have voted for hope.

In 2014, the biggest support base for Modi came from youth, in 2019 the new support base for Modi is women voters of Hindi belt. The dissatisfaction of farmers due to the agriculture crisis and youth from unemployment was compensated by women voters because of various schemes targeted towards women voters and law against triple talaq.

Now, what will be the winning points in 2024?

Youth and farmers had expectations and now women have an expectation for a better life. These issues if you go deep down are basically economic issues.

In specific terms, job creation in urban centres, rural employment, farmers income and viability of small and medium businesses. For all this Modi government will need financial resources.

The only way to generate resources is either increase the tax rates or attract private and foreign investment. The tax rate is not a sensible approach because this will send a negative message.

Private and foreign capital will definitely look at India as an investment opportunity provides we are pushing the reforms forward and making the system more transparent and accountable for performance.

Following should be the priority for ModiRaj 2.0:

1.        Promote efficient Small and Medium Enterprises: MSMEs are the core building blocks of employment generation and growth of our economy, and a few measures are required for their growth. There is a need to improve consumption economy in the country to improve jobs opportunities and tax revenue, and for this purpose, the government of India needs to invest in infrastructure and meaningful skill development particularly, in rural and smaller regions of the country as these are the main markets for MSMEs. There is a need to invest in export-oriented infrastructure and skill development which will boost the MSMEs export and domestic businesses. To strengthen the MSMEs, there is a need to develop business clusters such as textiles, plastic, steel, chemicals, agro-processing, etc to enhance the economy of scale and global competitiveness. There is an urgent requirement to review and simplify regulations to minimize corruption at the grass root level in the name of inspection, approvals, etc to make small companies and start-ups become more efficient.

2.        Reform all laws to remove corruption at a lower level and reduce transaction costs for private investments for job creation: This will boost investment in small and medium enterprises and start-ups will also flourish. This is vital for job creation because the government cannot create jobs.

3.        Go for major agriculture marketing reforms: With this new mandate take major political decisions and ensure agriculture markets are no more the domain of state governments and are not in the trap of cartels of traders. If required, go for constitutional amendments so that a fair and open market can be created for farmers and large-scale investment in infrastructure and value creation come in the agriculture sector.

4.        The government must invest in non-metro cities for industries and service industries: This will reduce the burden on existing cities due to population influx and create jobs in small towns and cities. This will ensure balanced growth and reduced crimes.

5.        Review Trade Policy to encourage domestic production: Growing imports their impact on domestic industries must be reviewed and suitable policy measures must be adopted to reverse the trend.

6.        Policy reforms to attract investments in social infrastructure: Government must make policies to encourage heavy investments on affordable health care, education and warehousing facilities in every block and panchayat along the highways. If required, encourage CSR funding and PPP model to attract private funding in these sectors.

7.        Re-orient skill development keeping in mind export competitiveness in mind: Skill development programs must be re-oriented to make Indian industries globally competitive.

8.        Institutions must be reformed to strengthen India’s position in the world: Modi government was blamed to undermining institutions in last 5 years, it was required to bring change in these institutions because most of them were under-performers and their track record was not in line with expectations. In fact, now Modi should focus on building world-class institutions because it is his job is to build India after building his political stature.

9.        The policy should be to make India should be a global destination for Tourism: With rich heritage and diversity, this is possible. This will create jobs and bring foreign exchange to India. For tourist attraction, the law and order, hygiene and safety of the tourists is a must. If required, bring a new regulatory regime to promote tourism. Offenders must be punished, and the tourism department must be in PPP mode to work on 24 hours basis and not like a typical government department.

10.   Natural resources preservation is key for a better future: Water and energy saving technologies must be promoted to save natural resources.

11.   Cost of Capital is a major challenge for India’s export growth: Cost of Capital and interest should be linked to the export performance and job creation. This will incentivize companies to become globally competitive and job oriented.

12.   All dimensions and sectors must be benchmarked to global competitiveness and all reforms and schemes must be with a clear focus to remove corruption at lower levels and reduce transaction costs this will help in creating a job by making Indian industries globally competitive.

After social and political engineering, now it is the challenge before Modiraj 2.0 to create jobs and social security by making Indian a global economic power by 2024.

I wish Mr. Modi and his new team to establish glory of India on world stage once again.