Prof. M. K. Bhat
In any democracy, it is important to assess how people’s representatives are performing after their ascendance to power but to draw conclusions after just one year seems too early. It is true that we are impatient people and waste no time in judging others. The assessment of the present government also becomes imperative because people have voted a single party to power after a gap of thirty years with a hope that it will perform. Economies do not change overnight, as magic wands do not work in this area and the expectations of people are so high that things should have been solved by now. It takes time to start business and to generate employment or to increase output in an economy. The government has gone very fast in last one year to develop ease at doing business although its full potential to usher change could not be attained due to the lack of numbers in Rajya Sabha.
The government has shown its utmost zeal for the success of ‘make in India’ program. It seems determined to remove the various roadblocks like low ease at doing business, lack of skilled manpower and infrastructure backwardness. With make in India on the one hand, it has tried to balance the economy by taking due care of 5.5 crore small units , who currently fall prey to an exorbitant rate of interest, by establishing Mudra Bank for them which may make loan easily available to them at a low rate of interest. Steps have been taken for skill development and continuous attempts are on the way to make business environment comfortable for the investors. More financial powers were given to the states, Swachh Bharat Abhiyan was launched, building 100 smart cities, are a few things to mention. It looks strange but true that Modi was the first to think in terms of Swachta after 68 years of our independence. The target of completing toilets in schools by 2019 will be a big achievement in itself.
The two prominent steps taken for the poor are social security measures and inclusive banking. Involving those away from banking into the banking process will not only lead to transfer of benefits in a better way but may also make these people beneficiary of the economic growth of the country. The financial inclusion and social security to the poor have earned appreciation for this government not only in India but from the world over .The Jhan dhan Yojana helped people to open their account with zero balance and no guarantee was required. It got tremendous support from people.
The Government in its last one year has charted a way for the transformation of society from an uninsured society to an insured one. The three schemes bearing convenience and affordability put forward for general public deserve a mention here.
People may get a life insurance of 2 lakh for just Rs 12 per year under Pradhan Mantri Suraksha Bima Yojana .This scheme can be opted by people in the age group 18 to 70 years with bank account. The premium will be directly auto-debited by the bank from the subscribers account. This scheme will provide a cover of Rs 2 Lakh for accidental death and full disability and Rs 1 Lakh for partial disability.
Under Atal Pension Yojna Scheme, the subscribers below the age of 40 years would receive the fixed monthly pension of Rs. 1000 to Rs 5000 at the age of 60 years, depending on their contributions. Its focus is on the unorganized sector. A pension provides people with a monthly income when they are no longer earning. To make the pension scheme more attractive, government would co-contribute 50 per cent of a subscriber’s contribution or Rs 1,000 per annum, whichever is lower to each eligible subscriber account for a period of 5 years from 2015-16 to 2019-20. The benefit of government’s co-contribution can be availed by those who subscribe to the scheme before December 31, 2015. It is open to all bank account holders who are not members of any statutory social security scheme, with the minimum age of 18 years and maximum age is 40 years. One needs to contribute till one attains 60 years of age.
The Pradhan Mantri Jeevan Jyoti Bima Yojana is available to people in the age group of 18 to 50 years, having a bank account. People who join this scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium worth Rs 330 per annum It will be auto-debited in one installment. The payment of premium will be directly auto-debited by the bank from the subscribers account and the risk coverage will be worth Rs. 2 Lakh in case of death for any reason.
These steps clearly nullify the fact that the Government is working pro rich and anti poor. Any impartial judgment about its one year of working may be incomplete without considering the position of country at the beginning of its term. The relations with neighbors was at its lowest, ease at doing business was at the rank of 142 out of 180 countries, rating of the country was put to a near negative level by rating agencies, inflation was quite high so was the NPA of banks .The problem of farmers suicide is not new as 45 farmers committed suicide every day as per National crime Bureau in 2012, the feel of corruption was being smelt everywhere. It may be mentioned here that the government also inherited certain positive things like demographic dividend, educated work force, and a democratic set up which could be galvanized for the growth of the country.
Modi Government earned accolade for developing respectable relationship with neighbors and has been getting a good response regarding foreign investments in the country. The rating of the country by various agencies has improved drastically. The corruption at top has come down due to the transparency in the deliverance of the official business. The country has moved away from non alignment to multi alignments for escalating its business. It is getting open for business with all the countries of the world and is being sought after by them.
It may however be mentioned here that the overconcentration on high growth rate will get little, if it lacks spillover effect. The escalation in investment shall result in more jobs else it may further widen the gap of inequality. The economic growth needs to be measured with reference to the elasticity of employment. Economic growth yields meaning when the last man feels himself a part and parcel of the economic development.
It is no doubt that good policies have been framed by the government in the last year but the speed to change all these steps into a reality at ground level, is a bit low .On the bases of theory anyone may give the present government ten upon ten but it has yet to pass its practical papers.
Let us feel content with the old saying that well begin is half done for the time being.
(The author is Deputy Director (MAIMS) Guru Gobind Singh Indraprastha University, New Delhi)
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