After Modi Govt. came to power in May 2014, the Govt. has undertaken a lot of economic reforms. Many were long awaited, and many struck at the heart of the entrenched corrupt in the society. Lets look at them one by one. The list goes long.
- Aadhar/Subsidy reforms– Passing of the Aadhar Law and linking the Jandhan accounts with Aadhar removed a lot of Ghost beneficiaries, which saved billions of dollars. It is therefore no surprise why Sonia Gandhi was so interested in challenging the Aadhar law in supreme court which they lost. “Satyameva Jayate”. For e.g., gas cylinder-Adhar linkage results to Rs. 50000 crore savings every year. And there are many more.
- Fertilizer subsidy reforms: The fertilizer subsidy bill used to be huge in India and a lot of the subsidized fertilizer was diverted. Modiji started neem coating of fertilizers which made the fertilizer unusable for other purposes(apart from farming).
- Goods and Services Tax (GST) – Due to mechanism of input tax credit, many businesses which comfortably avoided taxes were forced to pay taxes and also resulted in a lot of corruption by tax officials. That’s probably the reason why Gandhis call the GST as Gabbar Singh Tax.
- Reforms in RBI – Earlier the RBI Governor only had say in deciding interest rates. That was used by Raghuram Rajan to raise interest rates which killed India’s growth. NDA 1 Govt reformed it by forming a MPC committee which will decide the interest rate by a majority vote, so that people like Raghuram Rajan cannot run their whims.
- PAN-Aadhar linkage: This stopped many corrupt people from avoiding taxes and their black income by filing IT returns using multiple PANs.
- Demonetization: This broke the backbone of many corrupt political leaders who had hoarded large amounts of cash. It is said that the Gandhis had few flats in New Delhi filled with stacks of Rs. 500/- notes. A lot of the money got wasted or moved to banking system. It is no surprise why many regional parties(like SP, BSP etc.) have become weak after demonetization and Gandhis still curse it. It is clear that the step has hit them hard.
- Insolvency and Bankruptcy Code(IBC): Siphoning off money of PSU banks were going on for decades, that’s why probably Indiraji nationalized the banks and there was no law to deal with bad loans till 1993. By bringing in the IBC, it make it legally easier for banks to auction off the properties of defaulters.
- Mining Reforms: Mining was a hot bed of corruption. By ensuring allocation of mines through auctions and opening up more mines broke powerful monopolies. Govt. has even allowed private sector in Coal mining for commercial purpose as well, earlier CIL had monopoly which never produced the right amount of Coal India needed and hence Coal Mafias flourished in Bengal. The Bengali Coal mafias were the main funders of the Communist Party.
- Banking Reforms: The Cooperative banks provided hot beds of corruption, as they were beyond the purview of RBI. By bringing them under RBI control, the hole has been curbed. In the recent past many PSU banks have been consolidated/merged, this will make PSU banks more competitive and improve governance. The Govt. also plans to privatize few of the small PSU banks as well.
- Farm Reforms: Most of us know about the new farm laws, the farm laws will eventually help marginal farmers by freeing them from clutches of dalals/middlemen and corrupt FCI officials.
- Labor Law reforms: The 4 new labor codes have been passed by the Govt. and will come to force starting 1st April, 2021 subsuming archaic laws. This will make the industries more competitive, give more rights to workers, formalize the work force and rein in the highly corrupt officials of labor department. Vietnam’s economic miracle is mainly due to the reform in their labor laws.
- Article 370 abrogation: Many people view Article 370 abrogation a political reform, no doubt it is. It is also an economic reform. How? The article 370 provided a shield the corrupt in J&K from all anti corruption laws and hence enabled all corruption happen. After its abrogation, the corruption in J&K will reduce to the levels as other Indian states, earlier it was much higher.
- Privatization: The Govt. has revived the privatization process, the PSUs served as hot beds for militant trade union activity surviving on tax payers money. With they moving to private hands, tax payers money will be saved and the PSUs will become competitive.
- Reforms in defense procurement: During the reign of Rajiv Gandhi, Sonia Gandhi introduced middlemen for defense procurement. Modi Govt. has given a lot of liberty to armed forces to do purchases. Many purchases are Govt-Govt deals (like Rafale). Since Rafale did not involve any middlemen, many people got unhappy. The Govt. is also encouraging home built defense equipment. The Gandhis did not encourage “Made in India” arms as they cant earn much if the procurement is not done from foreign countries.
- Portal for Govt. procurement: Earlier, the reward of Govt. contracts were done in a murky manner. After Modiji came to power, he created online portals to do the procurement, which broke the corruption nexus.
- Reforms in Companies Act: Companies act have been amended multiple times to make it easy for companies for doing business. Recently, the Govt. decriminilized many minor offenses which will enable people run their businesses without worries and without bribes.
There are many more. I have listed just the major ones. Hence, I am not surprised when the Gandhis, left, media and presstitutes are after Modiji.
But have faith – “SATYAMEVA JAYATE”. WE WILL WIN.
Lord Krishna will protect us from any “brahmastra” thrown at us.
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