Thursday October 19, 2017
Home Uncategorized Narendra Modi...

Narendra Modi’s Financial dream,progress Slows down

0
147

By Himadri Ghosh

“Never before in economic history would 15 million bank accounts have been opened on a single day. Never before has the Government of organized a program of such scale,” Prime Minister Modi said on August 28, 2014, launching the Pradhan Mantri Jan Dhan Yojana (Prime Minister’s People’s Wealth Programme/PMJDY).Seventeen months later, in January 2016, the scheme reached all Indian households, according to official data, bringing 200 million additional families to the banking system.

But the primary goal, direct transfer of government subsidies to people, has not overcome two challenges: linking the unique identification (Aadhaar) card to PMJDY; and getting beneficiaries to use the bank account. The speed of adding accounts, as IndiaSpend reported earlier, was outpacing the delivery of benefits, and Reserve (RBI) governor Raghuram Rajan, in 2014, cautioned banks against focussing on numbers alone.

Less than half the 210 million Jan Dhan accounts were seeded with Aadhaar as of January 31, 2016, the data indicates. More than 30 percent of these accounts have been at “zero balance”, meaning the account holder was not using the account.

States struggling to link Aadhaar to PMJDY include Andhra Pradesh, Chhattisgarh, Jharkhand Karnataka, Kerala and Maharashtra. These states together linked less than 40 percent accounts to Aadhaar.

It is important that these states fall in line, as subsidies on cooking fuel, auto fuel and food grain impose a multibillion-rupee subsidy burden, the government has said.

The government is estimated to have spent Rs.266,700 crore ($45 billion) on subsidies in 2015, of which Rs.122,700 crore ($20 billion) was spent on food, Rs.71,000 crore ($12 billion) on fertilizer and Rs.60,300 crore ($9 billion) on oil.

Up to half of these subsidies are misappropriated, according to various estimates.

“One of the biggest reforms that India has embarked upon is moving to a market-pricing mechanism across a variety of products such as cooking fuels, auto fuels, food grains and fertilizers,” a Kotak strategy report said.

‘A policy does not work by itself?people must know how to use it’

“It takes time to properly implement policies in India, more so for financial schemes like PMJDY as a lot of people are unaware of words like bank, loan, subsidy,” said Santosh Kumar, professor of public policy and administration at FLAME University, Pune.

The integration of PMJDY, Aadhaar and Mobile (JAM) could be an important component of structural reforms. The idea of JAM, as propounded in the 2015 Economic Survey and the union budget, was to identify the beneficiary and deposit subsidies directly into his/her bank account.

“A policy does not work by itself,” said Kumar. “The government must have a strong political will to implement the policy properly by scrubbing it of discrepancies.”

“There are two aspects to financial inclusion: one is bank accounts and the second is access to credit. The scheme announced by the prime minister addresses the first problem. The issue of making credit available to small borrowers remains,” wrote C. Rangarajan, former chairman of the Economic Advisory Council to the prime minister, in The Hindu.

An article published by RBI in May 2013 revealed that more than 42 percent of rural credit is sourced from non-institutional agencies. “Rural credit markets in India is characterized by the coexistence of both formal and informal sources of finance and the market is fragmented,” RBI concluded after four rounds of survey.

“The scheme is a step forward but a lot needs to be done before calling it successful,” said Anindita Roy Saha, associate professor of economics at Delhi University. “People from rural and urban areas need to be treated separately. For achieving the objectives, people should be educated about the financial system.”

The United Progressive Alliance (UPA) government had opened nearly 60 million so-called no-frills accounts, but RBI data have shown that more than half of them remained dormant.

“The basic idea of financial inclusion is to include most of the vulnerable sections of society in the banking system,” said Kumar. “People need to know the potential of the scheme and the documents they have in possession; otherwise, they can’t exercise their rights.” (IANS/indiaspend.org)

 

Next Story

PM Modi is Optimistic about NDA’s Reforms to Boost Up Indian Economy

Lashing out at the critics, the Prime Minister elucidated about his government’s firm determination to boost up India’s economy. Admitting the economic plummet witnessed during the span of April-June, Modi declared that his government was devoted to back-pedal the mishaps due to the structural reforms of the economy. Let us look at what PM Modi said in his speech.

0
28
Challenges to Modi Government
Prime Minister Narendra Modi. Wikimedia

After facing severe criticisms over economic deceleration for a very long time, Modi finally broke his silence while addressing the Golden Jubilee Year Celebrations of the Institute of Company Secretaries of India (ICSI) in Delhi. Lashing out at the critics, the Prime Minister elucidated about his government’s firm determination to boost up Indian Economy.

Prime Minister Narendra Modi’s demonetization policy brought down the country’s GDP growth rate to a mere 6.1%. The implementation of the Goods and Services Tax (GST) added to the plight of already sick Indian economy.

Admitting the economic plummet witnessed during the span of April-June, Modi declared that his government was devoted to back-pedal the mishaps due to the structural reforms of the Indian economy. Let us look at what PM Modi said in his speech.

On Economic Reforms

PM Modi was very straightforward to acknowledge the economic slump caused. He assured that the BJP government was capable of reversing the trend and would take important decisions in that direction. Further, the Prime Minister informed that a cleanliness campaign has been started to remove the people who try to undermine the nation’s unity and integrity. Under this cleanliness campaign, a Special Investigation Team (STI) has started working ever since the Modi government came to power.

On Critics

Welcoming the constructive criticisms, Modi declared that his government is sensitive enough to accept the prevailing denigrations in the Indian economy and are rectifying their mistakes. The Prime Minister opined that people have the right to criticize the wrong, but one should restrain from fabricating an environment of panic in the country. Further, he added that his government has started working towards the “development of new India, new culture, new celebration, and new traditions.” Some people do not welcome the reforms even though they are good for the nation simply because they are anti-BJP. “People who sleep well only after spreading pessimism about government’s economic reforms need to be combated”, emphasized Modi.

Past Economic Deceleration

After achieving a whopping growth of 7.5% over the last three years, Modi acknowledged that the growth rates dropped sharply in April-June but the BJP government would not sit back until putting Indian economy on firm footing. While addressing the gathering, the Prime Minister recalled a time when Indian economy growth rate was as low as 0.2% under the previous government thereby emphasizing the fact that India can recover from the economic sluggishness.

Mainstreaming Informal Sector

Encouraging the movement from the informal sector to mainstream economy, PM Modi assured, “People coming to mainstream fear that their old records may be reopened. We will not let that happen because earlier their old way of business was necessitated by prevailing circumstances. Nothing is more sinful than blocking those who want to come to the mainstream. Let bygones be bygones.”

On Doklam

Many people opined that the BJP Government would not be able to handle the Doklam crisis. Describing the censurers as hypocrites, Modi elucidated that “when the economic growth is favorable, it is the same people who like the institutes and process; but the moment situation becomes unfavorable to them, they say that the system is not right, the process is not right, people working in it are not right and just accuse people.” The Prime Minister also held the view that before drawing any conclusion, it is imperative to identify these people at once.

On Transport System

Modi made a comparative study of the BJP government with the previous ones. He argued that in its last three years, the UPA government constructed National Highways spanning an area of 15,000km while the period under his government has witnessed the construction of more than 34,000km National Highways. As far as the construction sector is concerned, Modi claimed that the total number of foreign investment has increased by 75% from 2014-2017. The foreign direct investment in the air transport sector has also registered a growth by 69% in the past three years. Likewise, in the mining sector, there has been an increase by 56%.
The Prime Minister also told that the BJP government is trying to increase the speed of development while creating a large number of job opportunities. He added that the government knows the value of the hard-earned money and thus their policies are aimed at improving the lives of poor and middle class. Moreover, most of the government schemes are launched to empower the poor. What affects them the most is corruption and black money estimated Modi.

– Prepared by Mohima Haque of Newsgram
Twitter: mohimahaque26

Leave a Reply

Your email address will not be published.

Next Story

‘Janaraksha Yatra Kerala’ Witnesses escalating BJP-Left Confrontation

0
29
Amit Shah, President of the Bharatiya Janata Party.
Amit Shah, President of the Bharatiya Janata Party. Wikimedia

Hurling anti-left maneuver during Janaraksha Yatra Kerala, Indian BJP National President Amit Shah launched serious allegation against the ruling CPM government for triggering political violence and imputed to Chief Minister Pinarayi Vijayan the culpability for the mass killings of party workers in the state.

The BJP Chief traced back the origin of violence-centric politics in ”God’s Own Country” to the inception of the Communist regime. “Left always paralyses the state it rules. West Bengal and Tripura witnessed similar political vehemence under the CPM government”, elucidated the President.

Criticizing the Human Rights Activists of the nation, Amit Shah pointed out that they are very selective when it comes to what they support. “You turn your eyes away when our workers die. Why is there no march in Delhi? Violence has no color. More than 120 workers of the BJP have succumbed due to political violence so far. What was their fault? They were working for the betterment of Kerala”, complained the BJP Chief.

Acclaiming BJP’s ideology enthusiastically, Shah called upon the people to join as workers. Addressing the gathering at ‘Janaraksha Yatra Kerala’, the President added that family members of the deceased have stood by the BJP and he wouldn’t let the martyrdom of the workers go waste.

Amit Shah inaugurated the ‘Janaraksha Yatra Kerala’ at Payyannur to protest against alleged killings of party workers. The “padayatra” was led by the party’s State President Kummanam Rajashekhharan.

The National President of BJP attributed the diminishing power of the CPM to their increasing reliance on political violence. Apart from CPM, the once dominating Congress is also losing momentum thereby giving BJP the opportunity to flourish with their ideology. “More the mud of violence, more the lotus will bloom” added Shah.

The BJP Chief assured his party workers and volunteers that BJP would fight the war with CPM until emerging victorious. Shah declared, “We must all unite against the rule of the Left Government.”

Shortly after the launching of the yatra, three BJP workers adorning the National Highway 66 were ambushed by anonymous men on Monday. During his address, Shah alleged that the assailants were CPM cadres who have also destroyed BJP flags in the area.

Meanwhile, Uttar Pradesh Chief Minister Yogi Adityanath is ready to augment the saffron stand with his visit to Kerala on Wednesday. As per the report of Times Now, Adityanath will basically be in the Muslim-dominated district of Mallapuram.

Next Story

Mann Ki Baat: Modi Recalls ‘Khadi Movement’, Urges People to Use Khadi

0
39
Narendra Modi
Prime Minister Narendra Modi in Varanasi

New Delhi, Sep 24: Prime Minister Narendra Modi in his recent ‘Mann Ki Baat’ show, memorialized ‘Khadi Movement’.  He urged the masses to promote khadi usage and take it forward as a movement. “I had earlier mentioned that Khadi was not a cloth but a movement which should be taken forward,” Modi said in the 36th edition of his monthly radio programme, “Mann Ki Baat”.

Stating that he has observed a surge in the people’s interest towards Khadi, the Prime Minister said that the sale of the fabric has also increased due to which the employment among poor people has seen a rise.

“We must work towards lighting lamps in the houses of people engaged in the Khadi industry this Diwali,” he said.

“The Khadi ashram in Uttar Pradesh’s Varanasi was defunct for the last 26 years, however, it has now been revived,” Modi added. (IANS)