How Modi govt’s March policies set up the road ahead
A look at 10 Union ministries and their policies during the month of March, and what this means for the government moving forward.india Updated: Mar 31, 2018 12:18 IST
At the end of each month, HT will present a government dashboard — tracking key policy decisions or issues in ministries; their significance; and what to expect over the following weeks.
From major defence policy announcements to recalibration of ties with China, from awarding autonomy to universities to grappling with judicial order on atrocities against SCs and STs, from changing labour laws to fixing minimum support prices, March was a busy month for ministers and bureaucrats.
Here is a snapshot of developments in 10 ministries:
SIGNIFICANCE: Both meetings dealt with critical issues. The growing trade deficit with China is a cause of concern for India. India had a $51.1-billion trade deficit with China in 2016-17. China halting sharing of water flow data on the Brahmaputra was an outcome of the Doklam military standoff.
WHAT NEXT: External affairs minister Sushma Swaraj and defence minister Nirmala Sitharaman are expected to visit China in April. PM Modi will head to the Commonwealth Heads of Government meet, where India will play a greater role.
SIGNIFICANCE: The policy is significant as India has been the world’s largest weapons importer for a decade. The draft policy seeks to cut down by 2025 the dependence on imported military hardware such as fighter jets, helicopters, warships, combat vehicles, missiles, small arms and ammunition. India spent more than $100 billion on buying new weapons and systems during 2008-17.
WHAT NEXT: The ministry is organising DefExpo-2018, biennial military systems exhibition, in Chennai.
SIGNIFICANCE: The incident laid bare the vulnerability of CRPF troopers posted deep in Maoist strongholds. Though a commandant was transferred out of Sukma for ignoring intelligence inputs, the incident raised questions on issues such as the quality of equipment, pace of road construction in Maoist areas and overall government strategy.
WHAT NEXT: The home ministry will also face a challenge in Kashmir, where the advent of summer leads to infiltration attempts by militants. While security agencies say the summer will be smooth, there has been an increase in attacks by fidayeen squads and increasing tensions over the past month.
SIGNIFICANCE: The ministry pays salaries of all permanent employees who were on the rolls before 2007. Prasar bharati was carved out as an autonomous entity under the ministry in 1997. As per the rules, autonomous organisations receiving grant-in-aid must sign an MoU with the ministry.
WHAT NEXT: What concerns many in Prasar Bharati is the ministry’s insistence on asking the broadcaster to foot the expenses incurred on salaries of those engaged on a contractual basis after 2007. The board has submitted that it is facing a huge revenue deficit and paying salaries to contractual employees will add to its financial crisis and lead to job cuts.
SIGNIFICANCE: Farmers are protesting poor returns and meagre incomes. The response to growing dissent in the countryside was a budget announcement ensuring MSPs are 1.5 times the cost incurred by farmers. While farmers are demanding that the government use a wider measure called C2, which includes an ‘assumed cost’ of land and machinery, the government said it will continue calculating cost on an existing formula which covers all expenses of a farmer.
WHAT NEXT: The government will take a call on one of two models in April. The first is the market assurance scheme, under which states can procure produce directly from the farmers at MSP. The second is the "price-deficiency" scheme. If the sale price is below the "modal" price — a kind of average price — then farmers are paid the difference between MSP and the actual price.
SIGNIFICANCE: The decision of the court will impact how soon distribution of water between the three states — Karnataka, Tamil Nadu and Kerala — and the Union territory of Puducherry can begin. The decision is also likely to impact the Karnataka assembly elections on May 12. The Siddaramiah government has gained in the process as people feel their case was well represented in the court.
WHAT NEXT: The court’s judgment in April will shape the direction of work of the ministry over the next month.
SIGNIFICANCE: Institutes such as the Jawaharlal Nehru University, the University of Hyderabad and others have been selected. They will not have to approach the University Grants Commission for taking decisions such as starting new centres, departments and changing syllabus. The move was criticised by a section as it gives universities the option to hire foreign faculty, and to start self-financing courses, which many felt would lead to a fee hike. Experts also felt this will reduce the level of accountability.
WHAT NEXT: A government-appointed committee is likely to submit the draft report of the National Education Policy. This is a major policy document that will set priorities.
SIGNIFICANCE: Apart from anticipating an adverse electoral impact from the judgment, MPs from the ruling National Democratic Alliance cautioned that watering down the provisions of the law would exacerbate the pendency of cases filed under it. As on date, most states are yet to set up special courts to hear cases filed under the Act. High pendency and low conviction rates are other issues that have been flagged periodically.
WHAT NEXT: After getting a nod from the law ministry, the social justice and empowerment ministry will file a review petition against the Supreme Court order, which was seen to dilute the provisions of the Act.
SIGNIFICANCE: This bill, along with the New Delhi International Arbitration Centre (pending in Parliament since January 5), will reduce the burden on the judiciary by making arbitration the first choice for settling commercial disputes and make India a more acceptable business destination. The average time taken for a commercial dispute to get resolved in the country is 1,445 days.
WHAT NEXT: Though the bill is ready, it has been stuck due to a logjam in Parliament. If it is not taken up by either House before the end of the budget session on April 6, legal reforms needed to better India’s doing business rankings will suffer.
SIGNIFICANCE: With this, the government has finally put in place a hire-and-fire policy on the factory floor by doing away with existing retrenchment norms that apply to workers. The amendment is to serve the government’s overall aim of amending labour laws to improve the ease of doing business in India.
WHAT NEXT: Policy implementation will be key. Labour unions are opposed to the move. They say substitution of permanent and regular employment with contractual, fixed-term employment is no solution. The government says fixed-term workers, however, would still be entitled to benefits given to permanent workers. The change will come in handy for specific time-barred investments that require casual workers.