India, which is the world’s largest democracy got independence in 1947 and since we have seen India go from strength to strength. Currently, India is touted as the global player in south Asia after China. India has seen tremendous economic growth and since 1991 when the government headed by PV Narasimha Rao liberalised Indian economy and since then Indian republic has been there and thereabouts when it comes to growth and development.
Narendra Modi became prime minister and assumed charge in May 2014 and said that he would usher in a new India, where there will be growth, development, jobs and quality of the life of a human being will be dignified and India will embark upon a journey of sustainable development and growth. But, sadly the reality doesn’t agree with PM Modi’s vision and India’s growth and GDP numbers have plummeted and have reached a new low. Many experts, commentators, and economists have remarked that the current slowdown is not a temporary blip and it could continue for the foreseeable future. Bharatiya Janata Party’s (BJP) veteran leaders such as Yashwant Sinha and Arun Shourie have come out openly and said that economy is in doldrums and the buck stops with PM Modi and his finance minister Arun Jaitley. PM Modi has assured the electorate and said that there is nothing to worry and the economy will be back on track in the upcoming quarters and has also formed an economic advisory council to advise the government headed by Bibek Debroy.
Is India suffering because of demonetisation and Goods and Services Tax (GST)? On November 8, 2016, Indian political landscape changed forever with PM Modi in his address to the nation announced the major step of demonetising Rs 500 and Rs 1, 000 currency and within next six months government also implemented somewhat hastily a flawed GST. The economy as a result of this has no doubt weakened and the effect of it is currently burnt by the people.
Narendra Modi wanted to change the political discourse with demonetisation and GST, but when taken everything into account, it has been proven that India’s economic structure was not ready to deal with this strain. Demonetisation didn’t serve any purpose as 99 per cent of the demonetised currency returned to the banking sector and it proved to be a great money laundering exercise. GST was billed as ‘One Nation, One Tax’ and was brought into system to simplify India’s archaic and somewhat skewed tax system, but this exercise has raised more questions than answers and the trader community is facing existential crisis because of it. The decisions were taken with noble purpose, but it has come a cropper and the economy as a result of it has been in a downward spiral.
The opposition dubs this government as an event management machinery, with the ruling dispensation coming up with new narrative to divert the attention from core issues and is busy with rhetoric. PM Modi was voted to the power because of his decisive leadership and his ability to make things happen, but BJP is happy discussing issues such as who is national and anti-national, beef politics, love jihad, communalism vs secularism and is missing the point on crucial index of economic growth and overall development.
Also read: Congress slams PM Narendra Modi for declining economy
India, which considers itself an emerging country, has to clean up the economic mess currently the country finds itself in and has to do a major course correction to resurrect the financial stability. PM Modi is a student of politics and would know that perception in the public domain matters more than reality and currently the perception is building that the government is not doing enough to revive India’s economy. The great Indian story is at a point where something has to give and Narendra Modi would have to walk the talk on his promises and ‘New India’ will not be created without social harmony and economic prosperity.
Post Script: Narendra Modi and BJP can’t blame past dispensations for India’s woes all the time. Indian electorate gave decisive mandate to BJP to transform India and the buck stops with PM Modi. BJP national president Amit Shah’s dream of ‘Congress free India’ will soon become ‘BJP free India’, if BJP can’t get its act together. It’s time to deliver on the ground and the first step to do it would involve honest introspection. Just a thought!
