Modi’s prescription for economic resurgence

Critics have derided prime minister N Modi for absence of any major initiative or scheme for nation building in his independence day address on August 15, 2014. Some congress leaders even opined ‘he was giving an election speech’!

With a pre-meditated and prejudiced mindset, they won’t be able to see any.  One only needs to make an objective assessment to get to the bottom of what he gave to 1.25 billion country men and even to fellow citizens in our neighbour and beyond.

Modi’s extempore speech covering a wide spectrum left no one in doubt that he gave us a recipe for social, cultural, economic and industrial, renaissance. This is eloquently captured in a couple of phrases that he coined in his charismatic style.

When he exhorted people to “Make in India”, he was giving an open invitation to foreign investors to contribute to expansion of the manufacturing sector. The message was also meant for our own industrialist/businessmen who in recent years have been investing more money abroad than in India.

When he coined a related phrase “Made in India”, he was inspiring young Indians to leverage their talent to build our manufacturing capabilities and produce such high quality products that are accepted globally. He wanted India brand to become a household name all over the world.

Alongside pushing India brand globally, Modi demonstrated his sensitivity/concern for environment and unflinching commitment to development in harmony with nature when, he coined yet another captivating phrase “Zero Defect, Zero Effect”.

These exhortations need to be viewed in the backdrop of manufacturing sector languishing at around 15% of GDP for close to 2 decades and dire need to increase its share to 25% by 2025 as adumbrated in the national manufacturing policy.

Through “Made in India” prescription and boost to export of industrial products propelled by ‘zero defect’ mantra, he was also laying foundation for sustainable external trade balance and a strong rupee. In such a scenario, even foreign investors will bring funds with a long-term perspective; hence no threat of outflow at short notice.

Modi brought to centre-stage the pitiable conditions of our poor living in villages. To improve physical and social infrastructure viz., roads, water, power, school, hospitals, sanitation etc, he exhorted each parliamentarian to adopt a village by 2016. Thereafter, he should adopt 2 more villages.

They will strive to transform these in to model villages under a scheme aptly christened ‘saansad adarsh gram yojana (SAGY)’. He made a similar plea to members of state assemblies. All put together, we can look forward to tens of thousands of villages emerging as viable economic units offering growth and employment opportunities.

Under MPLAD (local area development) scheme in vogue since 1994, every elected member of Lok Sabha can recommend projects of up to Rs 5 crores to be implemented in the constituency that he represents. Likewise, members of Rajya Sabha can also recommend works to be undertaken in selected district.

Modi asked parliamentarians to use these funds for development of model villages. The SAGY will provide a unique opportunity for funds to be used for building infrastructure in villages unlike earlier when money just got pilfered through various malpractices leading even to demand for scrapping the scheme.

He recalled slogan given by Lal Bahadur Shastri in 60s “Jai Jawan, Jai Kisan” and recognized that contribution of farmers in filling our granaries is no less a matter of pride than soldiers defending borders. He promised full support to them for increasing food production for feeding growing population and exports.

Reinforcing his government’s commitment to financial inclusion, Modi announced ‘Pradhan Mantri Jan Dhan Yojana (PMJDY)’. Under PMJDY, 75 million no-frills bank accounts will be opened. These will come with a debit card, insurance cover of Rs 1 lakh and overdraft of Rs 5000/-. There can’t be a better way of involving the poor in economic mainstream.

About 50% of people defecate in open as they have no access to toilet.  To curb this curse, Modi declared a ‘Swachh Bharat Abhiyan’. Under it, toilets will be built in mission mode to ensure that by 2019 – 150th birth anniversary of Mahatama Gandhi – there won’t be a single person defecating in the open.

To cover 600 million persons, @ 5 members per household about 120 million toilets will be needed. Taking cost of building a toilet (and related facilities) to be about Rs 20,000/- , total investment would be about Rs 240,000 crores. The opportunities for growth and employment unleashed by this will be huge.

Modi connected this mission with restoring the dignity of women and ensuring their safety. He exhorted all schools to ensure that they have an ‘exclusive’ toilet for girls. He asked parliamentarians to contribute from MPLAD and corporate sector to include this activity under their CSR (corporate social responsibility) mandate.

Touching upon the endemic problems of corruption and how it corrodes development, he coined a cryptic phrase in Hindi – Indian local language – “Mera Kya, Mujhe Kya”.  This means “what is there for me in this?, why should I be concerned?” He was describing mindset of a corrupt official. Looking at a file, he will check what benefit will accrue to him? If it turns out, he has nothing to gain, he will simply look away!

In other words, he was referring to a deeply entrenched practice in Indian bureaucracy whereby only if the concerned person was willing to bribe him, the official will ‘expeditiously’ grant approval. If, the person does not pay up, the nod would be delayed or may not be given at all!  Modi pledged to root out this culture.

Commenting on widespread corruption in Indian system, Rajiv Gandhi then prime minister in 80s had once opined ‘of rupee one sanctioned for welfare schemes, only 15 paise reaches target beneficiaries’. Yet, he did nothing to stem the rot.

Meanwhile, 3 decades down the time span corruption and mis-appropriation of public funds have reached gargantuan proportions. Imagine the gains in terms of boost to GDP and income for poor if only this leakage is plugged and money deployed for intended purpose. This is what Modi is gunning for. 

Modi hit the nail in head when he said menace of rape can be curbed only by tackling it at family level. He took a jibe at parents who ask dozens of questions when daughter leaves home but, none from son. If only son is confronted with such questions: Where does he go? What for? What does he do? When will he be back? Rapes and associated law and order problems will automatically subside.

At another level, lamenting at current horrifying sex ratio of 940 females (for every 1000 males), Modi made an impassioned appeal to parents to shun  practice of killing the girl child in pursuit of their obsession with only boys. This will improve sex ratio, restore dignity of women and help in building a strong and resurgent India.            

To sum up, Modi stirred the conscience of 1.25 billion Indians and reminded them of their very basic responsibilities to the society and the nation. He also glided them in to the process of inclusive development and showed the way to make their respective contribution.

Critics may crib he did not talk about inflation, fiscal deficit, economic reforms etc. Government is already in high speed action mode to tackle these problems. These did not bear repetition. Instead, what Modi talked is some thing that will lay foundation for inclusive and sustainable development.

The need of the hour is for all of us to lend our full cooperation and support in executing the blue print that this truly unique, extra-ordinary and un-conventional prime minister has given for building a strong and resurgent India.     

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