The Narendra Modi-led National Democratic Alliance (NDA) had swept the polls in 2014 on a promise of inclusive economic development – “Sabka Saath, Sabka Vikaas”. Modi has continued this winning streak in 2019, leading NDA to another sweeping victory.
‘Ease of doing business’ was identified as a key factor to restore investor confidence and push the economic growth agenda. To enable business concepts like self-attestation, 5-year licence renewal was sought to replace the annual renewals. However, policy shapers should not just reduce the height of speed breakers but remove them altogether if business is to run faster.
While it’s true that India has moved up to 77th position in the World Bank’s ‘Ease of Doing Business’ ranking for 2018, NDA 2.0 ought to measure ease of doing business by benchmarking current practices with those of the Top 10 countries preferred by international businesses.
‘Make in India’ was another lever to spur the economy through investments and catalyse jobs creation. However, failure to back it with appropriate fiscal incentives that could reduce cost of capital and cut gestational time for realising return on investment led to sub-optimal investments in both greenfield and brownfield manufacturing projects.
NDA 2.0 must revisit this economic driver and reinstate Special Economic Zones and other fiscal incentives.
Then comes the Goods and Services Tax (GST), a great reform, but we botched up the rollout. NDA 2.0 must urgently fix the anomalies and implement a single slab GST of perhaps 15% to boost our sagging businesses and revive consumer spending.
The flawed multi-tiered GST unveiled by NDA 1.0 has decimated the garment industry and hurt Farmer Producer Organisations (FPOs) in the agricultural sector. Automobile and FMCG sectors are slowing down, which is a cause for worry.
Agrarian stress has been highlighted throughout these elections as a blot on our economy. NDA 2.0 must focus on innovative policies to create viable and sustainable farming models. FPOs are the best co-operative farming models available to provide equity to farmers.
The Universal Healthcare scheme, Ayushman Bharat, which the NDA 1.0 needs to be commended for initiating, needs to be shaped by NDA 2.0 into a viable and sustainable scheme that involves primary healthcare clinics and private sector hospitals.
Digital payment gateways, online retailing, on-demand services, e-education, e-healthcare etc. must be further enabled by NDA 2.0 through bold policies that empower, such businesses.
India must leverage the Aadhaar unique identification system and pull ahead of other economies in the way it delivers social welfare and other personalised schemes.
I do hope NDA 2.0 will double its spend in R&D and science & technology.