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A 10-point programme of the Modi Sarkar for the second year
Most of them will centre around infrastructure and agriculture, thinks Nomura
Last month, Prime Minister Narendra Modi completed one year in the office. Different ministries have already chalked out their plans of action for the second year and most plans appear to be a step forward along the path adopted in year one. The government also appears to be sending a message that economics will triumph politics, says Nomura. 
In a research report, it says, "Overall, if implemented, the direction of reforms in the second year will continue to be positive. At the same time, we expect the pace of reforms to be gradual, given the political hurdles around big bang reforms. Cumulatively, though, the reforms should aid in improving the medium-term fundamentals of the economy".
The government also appears to be sending a message that economics will triumph politics. Therefore, rural financial stress will be countered through measures that raise rural productivity and prosperity sustainably, and not through populism. According to Nomura, there are the top 10 priorities for the Modi government, like progression the goods and services tax (GST) and passing of the Land Acquisition Bill.
After completing one year in the office, several ministers from the union government highlighted their achievements and also shared their plans for the second year. Here is the plan of action from the ministers...

Finance & Corporate Affairs (Minister: Arun Jaitley)

GST implementation: The GST Constitutional Amendment Bill, which has already been passed by the Lok Sabha (lower house) and is pending in the Rajya Sabha (upper house), is likely to be passed in the monsoon session (likely from end-July to end-August). The Minister has stuck to 1 April 2016 as the GST implementation date.
Companies Act: The government is likely to set up a committee to look into the Companies Act and suggest changes to help improve the ease of doing business.

Railways (Suresh Prabhu):

Regulator: The government is likely to set up a Railways Regulator, which will monitor railways and help improve its efficiency.
Financing: The railway is likely to tap into global financial markets and supranational institutions to raise funds for infrastructure upgrading. 
Collaboration with PSUs and states: The railways have already signed MoUs with the state governments and public sector units (PSUs) to provide last mile connectivity. More such state-level collaborations are likely to be announced. 
Bullet trains: Feasibility study reports for the Mumbai-Ahmedabad and Delhi-Chennai corridors are expected during the year.

Highways, Ports and Surface Transport (Nitin Gadkari):

Financing: The government is working on a mechanism to allow private equity firms and sovereign wealth funds to buy stakes in highway projects. Further, the government is firming up plans for a $1.6 trillion financing institution that will fund highway projects with a 26% stake held by Japanese companies. 
Reinvigorating the PPP model: The government has set up a panel to look into the public private partnership (PPP) model and suggest ways to make the model more effective.
Land acquisition: Passing the land acquisition amendment bill (pending in the Rajya Sabha) is a priority.
Ports: To develop 12 ports into mini smart cities under the Sagarmala project.
Waterways: To develop inland waterways in India (development of the Ganges as an inland waterway is already underway). Also, boost the sector by passing the inland waterways bill in parliament. 

Power (Piyush Goyal):

Transmission: After generation, transmission is the next big focus area. In the next year, at least INR1trn worth of transmission capacity will be put out for bidding, as per the Minister. 
Renewable power generation: To announce incentives to boost solar power generation during the year.

Agriculture (Radha Mohan Singh): 

National Agriculture Policy: According to the Times of India, the government is working on a comprehensive National Agriculture Policy, which aims to increase agriculture productivity using measures such as soil health cards, micro irrigation, introducing new technology and crop insurance schemes.  
Agricultural Marketing Reforms: Central and state governments together are likely to identify 50 wholesale agriculture markets across 10 states and initiate reforms towards reducing levies, breaking the oligopoly of traders, etc. 
Irrigation: To present the road map for the Pradhan Mantri Sinchai Yojana (Prime Minister Irrigation Scheme) in a few months.
Low MSP: The Commission of Agriculture Costs and Prices (CACP) has recommended a marginal (<5%) increase in minimum support prices (MSP) for the summer crop in FY16. The government is likely to keep the MSP increase in check.
Against debt waiver program: The government is not in favour of debt waiver schemes and will instead rely on other more productive means to improve farm incomes and reduce farmer’s financial distress.

Petroleum and Natural Gas (Dharmendra Pradhan):

Kerosene subsidy: After LPG, kerosene is in focus. The government is starting a pilot project to plug leakage and has asked state governments to digitize household records and set out a criterion to identify beneficiaries. 
Subsidy sharing formula: Upstream firms do not have to bear the FY16 subsidy burden and the same is expected to be codified soon.
Increase in exploration activity: The government plans to launch the 10th round of auctions of oil and gas exploration blocks under the New Exploration Licensing Policy (NELP) in the next 6-12 months. Under this, it proposes a shift to the open acreage licensing policy, where the bidding and award of acreages will be a continuous, demand-based process.

Commerce and Industry (Nirmala Sitharaman):

State-level ease of doing business ranking: The government is likely to launch a state-level ease of doing business ranking in the coming months to foster more competition between states to improve the business climate.
Industrial Corridors: To setup a National Industrial Corridor Development Authority (NICDA) to help expedite work on industrial corridors.    



Srikanth Shankar Matrubai

1 year ago

Unless he gets out of shadows of fraud people like Sanjay Gupta (of Neesa Leisure) who has cheated Fixed Depositers of their hard earned money


1 year ago

A 10-point programmer of the Modi Sarkar for the second year./ it is alright to program but who has to FINISH ? or who will be responsible to get work done ? Even after closer of year u r not able to have INWARD NO instantly for pressing any document to any of the STATE/CENTRAL Gov.,department and even no correspondence made that we revived u r COMPLAINT/CORRESPONDENCE,what kind of GOVERNANCE is it GUJRAT MODEL.

Kamal Kothari

1 year ago

Excellent analysis

India's farm sector growth at 0.02percent, rural-urban divide widens
India's agriculture growth dropped to 0.02% in the last quarter of 2014-15, according to the latest government data, compounding predictions of a bad monsoon ahead.
The meteorological department on June 2, 2015, lowered its rainfall projections, saying the monsoon rainfall would be 88 percent of the average. If this prediction pans out, 2015 will officially be a drought year, declared when monsoon rainfall shortfall exceeds 10 percent.
Unseasonal rains caused crop damage and a farm crisis this year, forcing wheat imports from Australia.
While agriculture - which supports 600 million Indians - faces significant distress, the warning signs have been evident for many years. Over the past 20 years, the farm sector has experienced negative growth during five years, three of those being drought years.
Two indicators of India's struggle to keep its people fed are foodgrain production and its per capita availability.
Although foodgrain production increased 32 percent over the past two decades, the population has increased by roughly 42 percent over this period. Per capita availability of foodgrain has increased marginally, from 471 gm in 1994-95 to 511 gm in 2013-14.
Agriculture in India is mostly weather dependent, and that is a major reason for the fluctuations in farm growth.
The year 2014-15 has not been a good year for agriculture and productivity. Our recent report shows how hunger and malnourishment are growing in India, and why agriculture needs a boost in innovation for better productivity.
Instead, India's farmers are sinking deeper into distress.
Why farmers are becoming workers
Data gleaned over last three census periods-1991, 2001 and 2011-indicate that the population of cultivators has declined and farm labourers has increased.
This indicates that more people engaged in agriculture are landless and work on other people's land for wages.
The census defines two categories of workers engaged in farming: cultivators and agricultural labourers. While cultivators own land, agricultural labourers work on farms.
People engaged in the farm sector are mostly unskilled workers.
Meanwhile, India's urban-rural divide appears to have widened between 1993-94 and 2011-12, according to an IIM-Ahmedabad study, which indicated two trends over this period:
* Per capita GDP for rural India increased 7 times and for urban India by 8 times.
* Urban per capita GDP was 2.3 times more than rural in 1993-94; this difference was 2.5 times in 2011-12
The increasing gap shows that instead of moving towards greater economic productivity, rural India is engaged in low wage-earning activity on farms.


Workmen strike cripples SBI associate banks
Banking operations were severely hit as workers struck work in five associate banks of the State Bank of India across the country on Thursday, a union official said here.
The strike by clerical staff was to protest against the proposed merger of the five associates of SBI, the country's leading public sector bank, said All Indian Bank Employees Association vice president Vishwas Utagi.
"The employees are opposed to the merger and we want these five banks to be delinked from SBI and function independently," Utagi told IANS.
The five associate banks hit by the strike are the State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore and State Bank of Travancore.
Utagi said that around 50,000 staffers were on strike on Thursday in 6,000 branches of the five associate banks all over India.
On account of the strike in the five associate banks, inter-banking operations with other banks, including the SBI, also suffered, he added.
Today's strike was supported by all unions in the banking sector which have planned a major all-India strike on June 24.


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