The Modi govt completes two years today and it has been a roller-coaster ride. We as a nation have left the dark age of corruption and scams behind and are now headed to an age of transparency and development. The BJP made tall promises before the elections and there is still a long way to go to fulfilling them all. However i still believe that the NDA govt has done more good in 2 yrs more than the UPA did in 5 yrs of its second tenure.
Here are some of the big achievements of Modi govt:-
- The biggest achievement of the Modi govt has been to restore the credibility of our economy and restore the faith of global investors in The India Growth Story. It is just amazing that India now gets more FDI investments than any other country. As of today, we are the fastest growing major economy in the world.
The IMF hails our growth as a ‘bright spot’.Just about 3 yrs ago in August of 2013, the Rupee was in free fall, stock markets were crashing, fiscal deficit was and inflation were out of control, ministers were getting sacked for corruption and the parliament was shouting PM chor hai because of Coal-gate.
It has been no less than a miracle that Modi govt has saved our economy from huge crash landing like we are seeing in Brazil and Venezuela currently. Not to forget, all this has been achieved while the country suffered two successive droughts.
But instead of being grateful to the PM & FM for saving the nation, the intellectuals like to rather believe that all the growth has been because of falling oil prices and relish making doomsday predictions for when oil prices rise again. The trade deficit (exports-imports) is at 5 year lows The trade deficit for April 2016 was the lowest since March 2011. However the opposition and intellectual critics of govt distort facts and focus only on falling exports but won’t tell you about the deficit figure. The falling trade deficit also suggests that initiatives like Make In India have started bearing fruit.
- The power and coal sector under leadership of Piyush Goyal has also worked miracles. Rural electrification has picked up in last 1 yr. The govt intends to provide power connection to every village in next 2 yrs.
Production of coal by Coal India has seen unprecedented growth. It is up from 462 MT in FY14 to 536 MT in FY16. Now we have so much coal that there are no buyers left. Two yrs ago, we had hardly any coal and power plants had critical levels of reserves in summer months. Now we are saving over 20000cr per year in coal imports. There is so much coal now that Coal India has taken sharp price cuts of around 20% in recent times because of lack of buyers as the production has hit the roof .All this will eventually result in somewhat cheaper electricity for us consumers.
The power DISCOMs, that were making collective losses of approx Rs 1 trillion per year under the UPA will start breaking-even in next 2-3 yrs because of the restructuring done under the UDAY scheme. This is extremely critical if we want to have 24X7 electricity supply throughout the country.
- The Railways continues to struggle with the inefficiencies of the past. I expect things to start getting better only from next year onward as finances improve.This sector can attract enormous FDI and can be the engine of our growth in foreseeable future.
- The defense sector is also waking up from a long sleep. A long sleep of 10 frigging yrs under the UPA. The govt has just managed to make policy framework for acquisitions and has relaxed FDI limits. Lots of global defense giants have made commitments to Make In India, but action on the ground will still take more than a year. It can easily take another 5 years before we can substantially cut down on defense imports.
- The MSME sector has done decently under Modi govt. With unprecedented focus on the financial inclusion of the rural masses by Modi govt, this sector will continue to do well. Schemes and measures like Jan Dhan, Direct Benefit Transfer using Aadhar, crop insurance, life insurance Atal Pension, loans under Mudra bank will continue to boost MSME sector and it can be leader of growth.Last year RBI gave small-bank license to a handful of micro-finance institutions. Isn’t it incredible how once shunned ‘priority sector lending’ has transformed into a favorite investment destination for even institutional investors with IPOs of two micro-finance firms doing spectacularly in recent weeks.
- Agri production has been flat in last 2 yrs because of severe droughts. But the steps the govt is taking will have long term impact. The ambitious projects of interlinking of rivers and massive spends on irrigation can make India drought free in a few years. Facilitating the sale of agri-produce online through e-mandi initiatives under Digital-India will empower the farmer and enable him to get fair price for his produce.
- The transport & shipping sector under has also done remarkably in last 2 yrs. Road construction has picked up pace again. Almost all distressed projects have been restructured. Interesting initiatives have been taken in building inland waterways. There has been more transparency in bidding processes.The focus has been on time-bound clearances through online processes. The govt has also taken the task to build world-class port infrastructure through sagarmala project, that will boost trade and also lead to development of coastal areas.
With all these great initiatives by the govt, I am certain that our country is headed in the right direction. We have left behind the days of policy paralysis and our groath rates will only go up with time. GDP growth of above 8% looks definitely possible this year. We will definitely see the promised ‘Acche-Din’ in the next 3 yrs.