· To make every sector unique is the main aim
· Demonetization with the aim of controlling black money
· GST implemented throughout the country
· Brought new education policy
· Welcome to foreign direct investment
· Main concentration on privatization
HYDERABAD , NETIDHATHRI :
The economic policies of Narendra Modi Government mainly concentrated on privatization and liberalization of the economy. It totally based on neo-liberal framework. Modi liberalised the foreign direct investment in India, allowing more foreign investments in several industries including defence and railways. The first eight years of Modi’s Premiership India’s GDP grown at an average 5.5% compared to 7.03% under the previous government. This was attributed to 2016 demonetization which was an issuance of new bank notes in an effort to curtail black money and market as well as the efforts of the Goods and Service Tax the biggest tax reform in the country since Independence.
Modi labour reforms received support from World Bank, opposition Socialist and Communist policies, scholars, workers rights groups within the country. The labour laws also drew strong opposition from unions: on 2 September 2015, eleven of the country’s largest unions went on strike, including one affiliated with the BJP. The strike was estimated to have cost the economy $3.7 billion. The new premiership also took new measures such as expanded health insurance, a national dialysis programme and more government run pharmacies offering low-cost medicines. While private health care providers welcomed these steps, public health experts expressed concerns that public health care funding remains inadequate and public health services were being outsourced to private the private sector.
The COVID-19 pandemic led to major economic fallout in India, with a rise in poverty, unemployment, and a recession. In May 2020, Modi announced an overall economic stimulus package worth ¹ 20 lakh crore. The Government entered into significant agreements with General Electric and Alstom to supply India new with 1000 diesel locomotives as part of a broader effort to reform the Indian Railway system, which also encompassed privatization initiatives. In 2015, December Modi administration signed an agreement with Japan to jointly develop high-speed rail network connecting Mumbai and Ahmedabad. Under his leadership the Railway budget was merged with the Union Budget of India. Additionally, the date for presenting the budget was changed from 28 February to 1 February, and the financial year was adjusted from July to April. Moreover, the distinction between planned and non-planned expenditure was abolished. The Modi government also dismantled the Foreign Investment Promotion Board (FIPB), which had been viewed as a barrier to foreign direct investments.
Other reforms
The Government has increased the Budget for National Mission for Green India from Rs. 290 Crore to 361.69 Crore. The public expenditure on education including technical education as a percentage of GDP for the year 2013-2014 was 4.44% which was later reduced to 4.35% in the year 2014-2015 and was later increased to 4.56% in the year 2015–2016 by Modi Government.
The government substantially increased the percentage of central revenue directly granted to states, while decreasing the amount granted through various central government programs. Overall, states’ share of revenue increased marginally. The criteria upon which individual states’ allocation was determined were changed, such that the revenue to 19 states increased, and that of 10 states decreased. Only one of the ten states was ruled by the BJP when the policy was enacted.
On 25 June 2015, Modi launched a program intended to develop 100 smart cities. The “Smart Cities” program is expected to bring IT companies an extra benefit of ¹ 20 billion (US$230 million).[36] He also launched a “smart villages” initiative, under which villages would be given Internet access, clean water, sanitation, and low-carbon energy, with Members of Parliament overseeing the program’s implementation.
Give up LPG subsidy was a campaign launched by Modi in March 2015. It was aimed at motivating LPG users who can afford to pay the market price for LPG to voluntarily surrender their LPG subsidy. Maharashtra, Uttar Pradesh, Karnataka, Delhi and Tamil Nadu are the top five states to give up the subsidy. Modi launched Pradhan Mantri Jan Dhan Yojana (PMJDY) in August 2014. The initiative aimed to create bank accounts and debit cards for 150 million families, and to allow them an overdraft of ¹ 5,000 and accident insurance. Modi government launched the Pradhan Mantri Mudra Yojana (PMMY) in April 2015. Under this scheme, loans up to ¹ 10 lakh are given for non-agricultural activities under the three categories: Shishu (loans up to ¹ 50,000); Kishore (loans from ¹ 50,00 to ¹ 500,000) and Tarun (loans from ¹ 500, 000 to ¹ 1 million).
In June 2015, Modi launched the “Housing for All By 2022” project, which intends to eliminate slums in India by building about 20 million affordable homes for India’s urban poor. Modi also launched Pradhan Mantri Ujjwala Yojana (PMUY) on 1 May 2016 to distribute 50 million LPG connections to women of BPL families.
The BJP Government formulated the bill after 100 cases of instant triple talaq in the country since the Supreme Court judgment in August 2017. The central government re-introduced the bill in the Lok Sabha on 21 June 2019. The bill was subsequently passed by the Lok Sabha on 25 July 2019 and then by Rajya Sabha on 30 July 2019 and received assent from President Kovind on 31 July 2019. After its enactment, the Act became retrospectively effective from 19 September 2018. However, even after five years since Supreme Court’s invalidation of triple talaq, some of the women petitioners who were abandoned by their husbands, continue to live the life of half-divorcees.
In his first year as Prime Minister Modi reduced the amount of money spent by the government on healthcare. The Modi government launched a “New Health Policy” in January 2015. On 2 October 2014, Modi launched the Swachh Bharat Abhiyan (“Clean India”) campaign. The stated goals of the campaign included eliminating open defecation, eliminating manual scavenging, and improving waste management practices.[83][84] The campaign was announced on the anniversary of Mahatma Gandhi’s birthday, and was planned to achieve these aims in five years, or in time for the 150th anniversary of his birth. As part of the programme, the Indian government began the construction of millions toilets in rural areas, as well as efforts to encourage people to use them. The government also announced plans to build new sewage treatment plants.
Modi’s government developed a draft policy to introduce a universal health care system, known as the National Health Assurance Mission. Under this plan, the government was to provide free drugs, diagnostic treatment, and insurance coverage for serious ailments, The government announced “Ayushman Bharat” (National Health Protection Mission) in the 2018 Union Budget of India. It is World’s largest health protection scheme, also being called Modi Care. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a skill development initiative scheme of the Government of India for recognition and standardisation of skills.
The government began formulating a New Education Policy, or NEP, soon after its election. This was the third education policy introduced by the Indian government, following those of 1968 and 1986. In July 2020, the government unveiled the National Education Policy 2020, “envisioning an India-centric education system that contributes directly to transforming our nation sustainably into an equitable and vibrant knowledge society by providing high-quality education to all” and making “India a global knowledge superpower”.
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