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100 Days of Modi govt: Reforms, growth high on agenda
Hindustan Times takes a look at the significant milestones, upcoming challenges and agenda for key ministries.
The Narendra Modi-led NDA government has completed 100 days in office in its second term. Hindustan Times takes a look at the significant milestones, upcoming challenges and agenda for key ministries.
MINISTRY OF HOME AFFAIRS
ACHIEVEMENTS
The first 100 days have been extremely busy for the Union home ministry. The new minister, Amit Shah, moved a bill and a resolution in Parliament, withdrawing Jammu and Kashmir’s special status and splitting the state into two Union territories— Jammu and Kashmir, and Ladakh. The government says normalcy is returning to the region despite efforts by militants to disrupt peace. Managing the internal security situation effectively has been a key achievement of the ministry.
CHALLENGES
Major changes are accompanied with major challenges. Telecom connectivity continues to be restricted in Jammu and Kashmir, and some restrictions on movement of vehicles remain. Amid reports of Pakistan-trained militants trying to infiltrate into India, all eyes will be on the security situation. Winning the trust of the people in the region will be key. The home ministry has also done a commendable job to ensure peace and security in the state of Assam, where the final version of the National Register of Citizens was published on August 31 and excluded roughly 1.9 million people. Now, with the claims and appeals process, the ministry will have to keep a close check on the security apparatus in the northeastern state to ensure no incidents of violence are reported.
WHAT NEXT
Bringing normalcy to Kashmir will be high on the agenda. The government will have to ensure that connectivity is restored and curbs removed.
MINISTRY OF EXTERNAL AFFAIRS
ACHIEVEMENTS
The government’s key achievement on the foreign policy front was sustained outreach to countries in the neighbourhood and other parts of the world. PM Narendra Modi travelled to the Maldives, Sri Lanka and the United Arab Emirates and participated in the G20 Summit. External affairs minister S Jaishankar toured Europe and parts of Asia to build cooperation to boost trade and to forge common ground on issues such as Indo-Pacific and counterterror cooperation. The outreach helped India garner support for its reorganisation of Jammu and Kashmir in the face of opposition from Pakistan.
CHALLENGES
The biggest challenge confronting the government is the concern expressed by a number of countries, including the United States and the United Kingdom, about the communications blackout and detention of politicians and other people in J&K. The security measures have helped prevent the organisation of mass protests and avert violence, but the world community has begun calling on New Delhi to ease the restrictions, especially in the Kashmir Valley. Countering Pakistan’s campaign to internationalise the Kashmir issue, including its efforts to project the issue as a flashpoint that could trigger a war, is another challenge though most of the world community doesn’t think a confrontation is likely at the current juncture.
WHAT NEXT
The coming weeks and months will witness key meetings between Modi and US President Donald Trump and Chinese President Xi Jinping.
MINISTRY OF DEFENCE
ACHIEVEMENTS
The ministry approved a proposal to restructure the army headquarters as part of a larger transformation plan for the force to make it a deadlier fighting machine fully prepared for future wars. It also set up a high-powered panel to review the country’s defence procurement procedures to speed up arms purchases and provide a push to the Make in India programme. The government has also announced the creation of a Chief of Defence Staff for more effective coordination between the three armed forces.
CHALLENGES
Accelerating some key acquisitions is critical for the ministry as the military needs new fighter jets, helicopters, warships, submarines, armoured vehicles and other weapons. Ensuring availability of adequate funds to power some of these big-ticket acquisitions is also necessary. The ministry will have to shift into top gear to implement some key restructuring proposals that will bring about far-reaching changes in the army. While the Indian military has demonstrated synergy in operations, similar jointness in long-term planning, equipping and training is below desired levels. The Prime Minister himself has stressed the need for synergy on several occasions. The formation of Chief of Defence Staff will test this.
WHAT NEXT
An 11-member panel will carry out the review of defence procurement procedures and submit its report in six months.
MINISTRY OF FINANCE
ACHIEVEMENTS
The government, which is aware that the economy needs policy impetus to achieve higher growth, has been interacting with industry and sectoral experts. It has taken efforts to infuse liquidity in the system, boost consumption and attract private investments. It has acknowledged contributions of businesses in wealth creation and promised to make taxation regime simpler by introducing pre-filing of IT returns, faceless scrutiny from Vijaya Dashmi, reduction in GST returns and quicker indirect tax refunds. The GST rate on electric vehicles was reduced from 12% to 5%.
CHALLENGES
The government’s biggest challenge is to arrest the declining gross domestic product (GDP) growth and accelerate it to make India a $5 trillion economy by 2024-25. The current scenario is grim as the GDP for the quarter ending June 2019 grew at 5%, the lowest since March 2013. The second major challenge is to boost consumption as factories, particularly the automobile industry, are resorting to production cuts due to a sharp fall in demand. The third challenge is to create jobs for the country’s burgeoning population. The Labour Force Survey (PLFS) released by the National Sample Survey Office (NSSO) put unemployment rate at 6.1% in 2017-18, highest in more than four decades.
WHAT NEXT
In order to boost growth and create jobs, the government focus will on labour-intensive sectors like automobile and textile.
MINISTRY OF AGRICULTURE
ACHIEVEMENTS
The ministry’s agenda for the first 100 days included two key milestones. To boost rural demand and add to farmers’ income, the government, in its first Cabinet meeting on May 31, decided to cover all farmers under the PM-Kisan scheme, that promises to transfer ~6,000 annually in a farmer’s bank account in equal instalments of ~2,000. The ministry also launched the PM Kisan Maan Dhan Yojana, a pension scheme for small and marginal farmers on August 9.
CHALLENGES
The previous Modi government devised the PM-KISAN scheme for small and marginal farmers, whose land size is no more than 2.5 hectares. The revised scheme aimed to cover 20 million additional farmers, envisaging income transfers to a total of 145 million farmers with an outlay of ~87,217.50 crore in 2019-20. The previous government estimated an annual expenditure of ~75,000 crore.
WHAT NEXT
The government wants to double farmers’ income by 2023, which many say looks tough given subdued rural consumption and farm income. It will count on a much wider measure of earnings of a farm household than is captured by agricultural gross domestic product (GDP). A third of such households’ income is targeted to come from non-farm sources, such as rural enterprises. Also, the government will count in income transfers to farmers.
MINISTRY OF HUMAN RESOURCE DEVELOPMENT
ACHIEVEMENTS
The draft report on National Education Policy, aimed at big reforms in the education sector, was released the day new HRD minister Ramesh Pokhriyal Nishank took charge. Though the portions related to language policy led to protests initially, the ministry time and again emphasised that no language would be imposed on anyone. Another significant step is the nationwide launch of a teachers’ training programme. The ministry has also initiated steps to fill up thousands of vacancies in the higher education sector.
CHALLENGES
To usher in an NEP that is acceptable to all sections, and constructive and futuristic in outlook. Improving quality and modernising the country’s education set-up remain on the agenda. The ministry has tried hard but the number of Indian institutions in top 100 or top 200 globally remains limited. The HRD ministry plans to set up a Higher Education Commission of India and also the National Research Foundation.
WHAT NEXT
Around 200,000 suggestions on NEP are being analysed and a final draft would be created to be taken to the cabinet.
MINISTRY OF JAL SHAKTI
ACHIEVEMENTS
The Modi government has renamed the water resources ministry as Jal Shakti ministry, and launched a national campaign called Jal Jeevan Mission to boost water availability by conserving and recycling water. The aim is also to rejuvenate water bodies. The government has also aimed to provide assured piped drinking water to all rural households by 2024. In the first 100 days, the government kick-started the process to assess water availability in 256 water-stressed districts of the country and assigned more than 200 officials to travel to each of these districts.
CHALLENGES
In its first 100 days, the Jal Shakti ministry planned to provide piped drinking water to 19.5% of rural households during 2019-20 under the Jal Jeevan Mission. The Union budget has given the piped water mission an 82% boost in allocations at ~10,000.66 crore, signalling the government’s intention to ramp up coverage. The Jal Shakti ministry is also set to touch one million projects linked to water conservation under rural employment scheme MGNREGS in the first 100 days of the government. However, the rural water scheme, the flagship of Jal Jeevan, has missed targets consistently, including in 2017 and 2018. Maintaining sustainability of water bodies is one of the biggest challenges. Mapping water sources and aquifers in 256 water districts will require high-tech technologies.
WHAT NEXT
A framework for demand and supply management, water audits and a conservation policy with focus on groundwater sources
MINISTRY OF RURAL DEVELOPMENT
ACHIEVEMENTS
The ministry, which has the highest budget after the defence sector, has been a success story for the Modi government. The government has been able to build 15.4 million rural homes in the last five years and, along with Ujjwala, the Pradhan Mantri Awas Yojna has been highly popular. Rural road network has improved and a robust network of over 60 million women in self-help-groups has been built, setting the stage for growth in farmers’ income. The national rural livelihood mission is providing skill training and overall, there is no shortage of funds that crippled works in the UPA era.
CHALLENGES
Despite a basket of welfare measures rolled out for the rural poor, there is no increase in rural wages, which is a matter of concern. The government’s argument is that wages for MGNREGS—a benchmark for rural wages— are measured primarily by food inflation (which is low due to the food security programme). But economists argue that rural families tend to also bear expenses on education and health. The low wages coupled with low returns for many farmers in worrying. The Opposition has been critical of the government for not being able to increase farm income, as promised by the BJP in the 2014 polls.
WHAT NEXT
The Centre is expected to increase its budget for rural India. It has already launched the second phase of the PM Awas scheme.
MINISTRY OF ROAD TRANSPORT & HIGHWAYS
ACHIEVEMENTS
Passage of the Motor Vehicles Bill, 2019, was a long-pending project of Union transport minister Nitin Gadkari. The bill, which failed to get the Rajya Sabha’s nod last year, was finally approved. It seeks to eliminate corruption in the transport sector, regulate cab aggregators, centralise vehicle registration and improve road safety by bringing in heftier fines.
CHALLENGES
The road sector is reeling due to financial stress, with the National Highways Authority of India’s total estimated debt reaching ~2 lakh crore. Various projects are facing financial closure due to wariness of banks to lend, high share of Non-Performing Assets and asset liability mismatch.
WHAT NEXT
The Centre needs to look for new avenues for funding. The ministry plans to raise funds for highway projects through toll-operate-transfer auctions.
MINISTRY OF POWER
ACHIEVEMENTS
In a bold move to discipline the state-owned loss-making power distribution companies (discoms), the power ministry has announced that the ‘Letter of Credit’ should be mandatorily followed as a payment security mechanism. The ministry said the discoms, which default on their payment to power generators, will not be allowed to purchase short-term power from open market.
CHALLENGES
Amidst a growth slump, the financial health of power discoms remains a concern as they continue to run in losses. The cumulative financial distress of discoms was at ~28,369 crore at the end of FY19, up 88.6%, according to the ministry’s online data portal for Ujwal DISCOM Assurance Yojana (UDAY) scheme.
WHAT NEXT
The power minister has told HT that a national tariff policy aimed at penalising DISCOMs for load-shedding is being prepared.
MINISTRY OF RAILWAYS
ACHIEVEMENTS
The ministry has completed work on 4,000 of the 6,441 stations, which were supposed to provide free Wi-Fi, by September 1. With an average of 83 stations per day, the Wi-Fi plan was rolled out in 1,000 stations in a record time of 12 days by RailTel, a PSU of Indian Railways. This was one of the six projects that were included in the 100-day agenda of the central government. The ministry has also finalised the specifications of train operations by private operators, and has got the cabinet’s approval to turn Delhi-Mumbai and Delhi-Howrah into high-speed corridors.
CHALLENGES
Three other projects — eliminating all manned level crossings on golden quadrilateral, corporatisation of production unit of rolling stock and advance signalling system — are the main challenges for the ministry due to the quantum of work involved. While a pilot project for testing of new signalling system has been planned, the ministry is facing backlash for corporatisation of the production units.
WHAT NEXT
While the Wi-Fi project is nearing completion, the ministry must be careful about operations by private operators.
MINISTRY OF INFORMATION & BROADCASTING
ACHIEVEMENTS
The ministry has pushed for achieving accessibility standards; it asked all private channels to run special programmes for Independence Day for the differently abled. The channels were given the option of sourcing the programme from Doordarshan. The ministry also announced a cap on foreign direct investment in digital news media at 26%, which is on a par with print media. It announced two additional frequencies dedicated to community radio services and expanded the reach of DD by distributing 30,000 free set top boxes in the far flung areas of Jammu and Kashmir.
CHALLENGES
The ministry has begun work to make changes in the Cinematograph Act in order to curb piracy, and has invited suggestions and recommendations from audience and other stakeholders regarding certification of online content. The ministry is in the process of setting in place a fact-check unit that will bust fake news that has the potential to create social unrest. It is working out the details of how to run the fact-check unit to counter in real-time any information doing the rounds on social media that is incorrect or aimed at creating law and order problems.
WHAT NEXT
The ministry may soon revise the advertisement rates for community radio on the lines of a recent hike in rates for print and electronic media.
MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT
ACHIEVEMENTS
A National Action Plan for Drug Demand Reduction (NAPDDR) has been prepared for 2018-2025 with an aim to reduce consequences of drug abuse through education, de-addiction and rehabilitation of affected individuals and their families. Under the prohibition of employment as manual scavengers and their rehabilitation act, 2013, it has provided one-time cash assistance of ~40,000 each to 5,235 persons and imparted skill training to 62 manual scavengers and their dependents.
CHALLENGES
The ministry has introduced the Transgender Persons (Protection of Rights) Bill, 2019, in the Lok Sabha in July, but it is still pending in the Rajya Sabha. It also has to ensure that its plan for creating accessible physical environment to persons with disabilities is on track. The ministry also needs to make changes to a bill proposed for the Maintenance and Welfare of Parents and Senior Citizens Act. It has proposed widening the definition of family to make even distant relatives responsible for the upkeep of seniors and suggested fines and penal action for abandoning parents.
WHAT NEXT
The final report of Justice Rohini Commission to suggest the ways for sub-categorisation of OBCs is awaited.
MINISTRY OF CIVIL AVIATION
ACHIEVEMENTS
The Airports Authority of India (AAI) has declared 55 airports, of the 100 airports it operates, as “single-use” plastic free. This was part of the 100-day agenda of the central government and AAI is racing ahead to complete it by the end of this year. Another important agenda for government was to privatise the existing airports. The cabinet, in July, had given approval for privatisation of Ahmedabad, Lucknow and Mangaluru airports, and is likely to approve privatisation of another three soon.
CHALLENGES
Selling the debt-laden Air India will be the biggest challenge for the ministry. The concerned group of ministers is yet to meet to decide on the matter related to the sale. Although the government has made it clear it will go for 100% sale, getting a buyer and keeping the offer attractive will be a challenge. Another challenge is to decongest the airports in metro cities.
WHAT NEXT
The government has planned to privatise the airport sector. AAI will come up with a list of about two dozen attractive airports that can be privatised, and will submit it to the government. AAI has appointed two consultants who will identify the airports that will attract private investment and also suggest the new role of AAI since most of the airports will be privatised.
