Modi dons Eco. Reformer hat: Braving slowdown and corona crisis, tries to reboot Indian economy

In his remarks at a meeting with the Chief Ministers on Monday, Prime Minister Narendra Modi had said "the world has fundamentally changed post COVID-19". Taking this spirit along in his Tuesday's address to the nation, Prime Minister said: "The world is beginning to believe that India can do very well, so much good for the welfare of mankind can give".

Industrialist Anand Mahindra tweeted: This was the PM’s Carpe Diem (Seize the Day) speech; an opportunity to change the narrative from ‘Survival’ to ‘Strength.’ We will know tomorrow whether or not this is going to be a transformational moment like 1991. What I also believe is I won’t get much sleep tonight!

gave apause to his well known Hindutva slant and political brownie points as he announced on Tuesdaya massive Rs 20 lakh crore (about 266 bn dollar) stimulus package to brave through the economic uncertainty confronted following weeks of lockdown. 

"Corona will be with us for a long time but our lives cannot solely revolve around it. We will wear masks, we will have tofollow social distance (of six-foot gap), but we would not let the challenge derail our targets," the PrimeMinister said in his fifth television address to the nation on Tuesday, May 12 since the corona crisis hit India.

"This was the PM’s Carpe Diem (Seize the Day) speech; an opportunity to change the narrative from Survival to Strength,"tweeted industrialist Anand Mahindra. 

"We will know tomorrow whether or not this is going to be a transformational moment like 1991," he said.

India under Modi's predecessor Dr Manmohan Singh as the federal Finance Minister in 1991 undertook firsteconomic reforms measures and propelled it to new vista of growth and prosperity.

It is presumed the new package - the details of which will be unveiled by Finance Minister Nirmala Sitharaman -included the March allocation as well as liquidity measures announced by regulator Reserve Bank of India. 

“Headline announcement looks positive," remarked Sandip Sabharwal, a Mumbai-based fund manager.

PM Modi made it clear that at the end of 54-day lockdown enforced since March 25, the country will proceed on withLockdown 4 after May 17. But he made it clear that the new lockdown norms would be "completely different" unlikethe on-going shutdown - hinting that vital economic activities may be allowed.

"This package does not mean money will reach consumers' pocket, but it will reshape the country's future," said expert T V Mohandas Pai.He also said it is not going to be like Japan or the US model of economic package announced following corona crisis.

"This is going to be investment led initiative budget to be spent over may be next two to three years which will reshape the priorities of people," Pai said.

The halt of industrial works have upset millions of migrant workers and certainly damaged the economy.

In March this year, Prime Minister himself had said that India had paid a "heavy price" economically due to lockdown.

In other words, prime minister indicated that things would be left with states during Lockdown 4 and the provincial governments will be given more powers -- something most states had sought for during his interaction with the Chief Ministers on Monday,May 11. Political observer Vidyarthi Kumar said: "It depends how one looks. Modi has done good homework. You may callit Lockdown 4.0 from May 18 and also Exit_Lockdown 1.0".

The special economic package is equivalent to around 10 per cent of India's GDP, would be aimed at ensuring a "self-reliant India".

Modi's party chief J P Nadda has already described the ''world''s largest holistic relief package''.

Though focused on economic issues, Modi - as expected of his image did play up the conventional nationalist image to the hilt - as most of what he spoke about the country's priorities border around over ambitions. 

"This package is for the farmers, for our middle class who honestly pay taxes and our industry players who are determined to take India to new heights," Modi said.

At one point he resorted to his well known rhetorics - "India is standing on five pillars -- economy, infrastructure, governing systems, vibrant democracy and supply chain".

In another instance he said: "All our demands during the crisis were met ‘locally’. Now, its time to be vocal about the local products and help these local products become global".

He made these statements when India's position as a manufacturing hub has been fairly unsatisfactory as economicactivities largely bank on IT sector, service sector and money spinner like real estate.Prime Minister Modi's hyped 'Make in India' initiative launched with much fanfare in 2014 also did not much headway, hisdetractors say.Therefore, it was not surprising the opposition Congress party flayed PM's speech dismissing it as a mere "headlinehunting" exercise. Congress MP Manish Tewari tweeted: "PM's speech can be summed up in one word -- HEADLINE HUNTING. A NUMBER -- 20 LAKH CRORES. NO DETAILS".

BJP chief J P Nadda said:  "In the times of Covid-19, Hon. PM is leading the country from the front. The 21st century will be defined by India, PM's message today has laid foundation stone for implementing this". 

'Self reliance for India' will be the new "Mantra for driving the country towards this new change", he wrote.

In March, the Modi government said it would provide around 1.7 trillion rupees ($2.6 billion) in direct cash transfers and food security measures, mainly for the poor. Modi said: “The (new) package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, medium and small enterprises, labourers, middle class, industries, among others.”

Part of the English rendering of PM Modi's address on May 12, 2020

".......when the Bharat Bhumi, becomes self-sufficient, it ensures the possibility of a prosperous world. India's progress has always been integral to the progress of the world.

India's goals and actions impact the global welfare. When India is free from open defecation,it has an impact on the image of the world. Be it TB, malnutrition, polio, India's campaigns have influenced the world. International Solar Alliance is India's gift against Global Warming. The initiative of International Yoga Day is India's gift to relieve stress. Indian medicines have given a fresh lease of life to the people in different parts of the world.

These steps have brought laurels for India and it makes every Indian feel proud. The world is beginning to believe that India can do very well, so much good for the welfare of mankind can give.

 

The question is - how?

The answer to this question is – A Combined resolve of 130 crore citizens for a self-reliant India.

 

Friends,

We have a proud history of centuries. When India was prosperous, it was called the golden goose, it was prosperous, and then it always walked tall for the welfare of the world. 

Then the times changed, the country was caught in the chains of slavery, we longed for development. Today, when India is making rapid strides in its progress, it is still committed to the goal of global welfare. Remember, the Y2K crisis at the beginning of this century. Technology experts from India pulled the world out of that crisis. Today we have the resources, we have the power, and we have the best talent in the world.

We will make the best products, will improve our quality further, make the supply chain more modern, we can do this and we will definitely do it.

 

Friends,

I had witnessed the Kutch earthquake. There was debris everywhere. Everything was destroyed. It seemed as if Kutch had fallen asleep wearing a sheet of death. In that situation no one could have imagined that the situation would ever change. However, Kutch stood up, Kutch started moving, Kutch moved. This is the grit and determination of weIndians.

If we are determined then we can reach our goals and no path will be difficult. And today there is a will and there is a way. That is to make India self-reliant. Our combined resolve is so strong that India can become self-sufficient.

 

Friends, this magnificent building of self-reliant India will stand on five Pillars.

First Pillar is Economy, an economy that brings Quantum Jump rather than Incremental change.

Second Pillar is Infrastructure, an infrastructure that became the identity of modern India.

Third Pillar is Our System. A system that is driven by technology which canfulfill the dreams of the 21st century; a system not based on the policy of the past century.

Fourth Pillar is Our Demography. Our Vibrant Demography is our strength in the world's largest democracy, our source of energy for self-reliant India.

The fifth pillar is Demand. The cycle of demand and supply chain in our economy, is the strength that needs to be harnessed to its full potential. In order to increase demand in the country and to meet this demand, every stake-holder in our supply chain needs to be empowered. We will strengthen our supply chain, our supply system built up with the smell of the soil and the sweat of our labourers.

 

Friends, amidst the Corona crisis, I am announcing today a special economic package with a new resolution. This economic package will serve as an important link in the 'AtmaNirbhar Bharat Abhiyan” (Self Reliant India Campaign)'.

 

Friends, in the recent past economic announcements made by the government related to the Corona crisis, which were the decisions of the Reserve Bank. The economic package that is being announced today, if added, comes to around Rs. 20 lakh crores. This package is about 10 percent of India's GDP. With this various sections of the country and those linked to economic system will get support and strength of 20 lakh crore rupees. This package will give a new impetus to the development journey of the country in 2020 and a new direction to the Self-reliant India campaign. In order to prove the resolve of a self-reliant India, Land, Labor, Liquidity and Laws all have been emphasized in this package.

This economic package is for our cottage industry, home industry, our small-scale industry, our MSME, which is a source of livelihood for millions of people, which is the strong foundation of our resolve for a self-reliant India. This economic package is for that labourer of the country, for the farmers of the country who are working day and night for the countrymen in every situation, every season. This economic package is for the middle class of our country, which pays taxes honestly and contributes to the development of the country. This economic package is for Indian industries, which are determined to give a boost to the economic potential of India. Starting tomorrow, over the next few days, the Finance Minister will give you detailed information about this economic package inspired by the 'Self-reliant India campaign'.

 

Friends, it is now imperative for the country to move forward with the commitment of Bold Reforms to create a self-reliant India. You have also experienced that as a result of the reforms over the past 6 years, today even in this time of crisis; India's systems have looked more efficient. Otherwise, who could have thought that the money sent by Government of India will reach directly in the pocket of the poor farmer! But it has happened. That also  happened when all the government offices were closed; the means of transport were shut down.This was just a reform related to Janadhan-Aadhaar-Mobile-JAM's Trishakti, the effect of which we have just seen. Now the scope of the reforms has to be broadened, giving a new height. These reforms will be in the entire supply chain related to farming, so that the farmer is also empowered and will have minimal impact on agriculture in any other crisis like corona in future. These reforms will be for, rational tax system, simple and clear rules-of-law, good infrastructure, capable and competent human resources, and building strong financial system. These reforms will encourage business, attract investment and strengthen our resolve for Make in India.

 

Friends, self-reliance is possible only through inner strength and self-belief. Self-reliance also prepares the country for a tough competition in the global supply chain. And today it is the need of the hour that India should play a big role in the global supply chain. Realizing this, many provisions have also been made in the economic package. This will increase the efficiency of all our sectors and also ensure quality.

 

Friends, this crisis is so big, that the biggest systems have been shaken. However, under these circumstances, the country has also seen the resolve and restraint of our poor brothers and sisters, especially the street vendors, hawkers, labourers, those who are working in homes, they have done a lot of penance during this time, they have sacrificed a lot. Who would not have realized their absence? Now it is our duty to make them strong, to take some big steps for their financial requirements. Keeping this in mind, be it poor, labourers, migrant labourers, cattle rearers, be our fishermen, organized sector or unorganized sector, some important decisions will be announced in the economic package for every section.

 

Friends, the Corona crisis has also explained to us the importance of Local manufacturing, Local market and Local supply chain. In times of crisis, this Local has fulfilled our demand, this Local has saved us. Local is not just the need, it is our responsibility also. Time has taught us that we must make the Local as a mantra of our life. The Global Brands you feel today were sometimes also very local like this. But when people started using them, started promoting them, branding them, proud of them, they became Global from Local Products. Therefore, from today every Indian has to become vocal for their local, not only to buy local products, but also to promote them proudly. I am confident that our country can do this. Your efforts have increased my reverence for you every time. I recollect one thing with pride. When I requested you and the nation to  buyKhadi and said it will be a great support to our handloom workers. Today, the demand and sales of both Khadi and handloom have reached record levels in a very short time. Not only that, you also made it a big brand. It  was a very small effort, but the result was very good.

 

Friends, experts and scientists have pointed out that Corona will remain a part of our lives for a long time. But at the same time, we cannot allow this to happen that our lives will be confined only around the corona. We would wear masks, follow two yards distance and pursue our goals. Therefore, the fourth phase of lockdown, lockdown 4, will be completely redesigned, with new rules. Based on the suggestions we are getting from the states, information related to Lockdown 4 will also be given to you before 18 May. I am confident that by following the rules, we will fight Corona and move forward.

 

Friends, In our culture, it is said 'सर्वम् आत्म वशं सुखम्' i.e. what is in our control, is happiness. Self-reliance leads to happiness, satisfaction and empowerment. Our responsibility to make the 21st century, the century of India, will be fulfilled by the pledge of self-reliant India. This responsibility will only get energy from the life force of 130 crore citizens. This era of self-reliant India will be a new vow for every Indian as well as a new festival. Now we have to move forward with a new resolve and determination. When ethics are filled with duty, the culmination of diligence, the capital of skills, then who can stop India from becoming self-reliant? We can make India a self-reliant nation. We will make India self-reliant. With this resolve, with this belief, I wish you the very best.

ends