100 days of Narendra Modi govt: 10 hits & misses

Sep 03 2014, 11:50 IST
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Prime Minister Narendra Modi speaks at a business meeting in Tokyo. (PTI) Prime Minister Narendra Modi speaks at a business meeting in Tokyo. (PTI)
SummaryHigh-decibel policy reforms are absent so far at PM Narendra Modi's 100th day in office...

High-decibel policy reforms are absent so far at PM Narendra Modi's 100th day in office, and may have to wait till assemblies like Maharashtra have been won. Although focus on fixing business climate is good for now hike in capital productivity, big reforms are vital for an 8%+ growth.

Here are the hits and misses of PM Narendra Modi-led NDA government's 100th day in office:

Cutting subsidies

Expenditure panel set up to suggest changes, restructuring FCI on anvil, Aadhaar-based cash transfers to be expedited. No moves on raising LPG prices as was done for diesel

Fixing tax terror

No fresh use of retro law, courts to decide pending cases. Cut the 2.2 lakh pending disputes to 80,000 by April 2015

Fix time-consuming land acquisition law

BJP supported bad law, now consulting states on changes. Rajasthan-type changes—higher compensation, social impact study for only few projects—unlikely. Likely to carve out more exemption areas for defence, low-cost housing

hike FDI in insurance and defence

Insurance Bill stuck. Defence at 49%; govt hopes to get investors excited by clearing defence deals, some already done

Modernising agriculture

No move yet to give cash transfers to farmers instead of FCI purchase that benefits larger farmers in only few states. Some reduction in FCI purchases in states that offer bonuses

Goods and service tax

Still stuck with states coming up with new demands. Latest is states wanting full power to tax firms up to sales of R1.5 crore

Jan Dhan Yojana

Bank accounts for all families with R5,000 overdraft and insurance. Will work only if subsidies routed through banks

Fixing labour laws

Changed law on skilling and apprentices to give flexibility. More changes dependent on individual states like Rajasthan

Modifying centre-state relations

Finance Commission to decide on more automatic fund devolution, govt keen to limit Centre’s overarching role

Bank holding company to help raise funds

No decision as yet, critical if banks are to raise lending

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