Zee Media Bureau
As Narendra Modi led National Democratic Alliance (NDA) government completes two years in office, we are evaluating the promises fulfilled and those still incomplete here.
Here are the 5 major promises which are still awaiting completion:
1. Goods and Services Tax (GST)
GST is considered to bring about a major turnaround in the India economy if passed in the Parliament. However, the continuous logjam in the upper house ( NDA is in minority in Rajya Sabha) is acting as a major obstacle for many sessions. The government needs to pull up its socks and ensure that the bill becomes a law in the impending monsoon session of the Parliament.
Even the Land Reforms Bill is unable to see any major push. Although the Centre took the ordinance route to clear the bill, it was re-promulgated twice and lapsed on August 31, 2015.
Bringing back black money was one of the biggest promises made by this government during elections. In the latest, the government has provided a three-month compliance window to the defaulters. However, not much can be seen happening here. The government needs to work much harder to retain its promise.
4.Banking Sector Reforms
Banking sector is undergoing a huge stress presently. Not only the level of non-performing assets (NPAs) have reached an alarming level, the deposit rate and credit growth has become stagnant. The Reserve Bank of India (RBI) is working to ensure the bad loans are recognized on time and can be restructured. During the March quarter alone, PSU banks reported record level of bad loans resulting in cumulative losses of over Rs 14,000 crore. The government needs to work in tandem with the Central Bank to fend off the problem as soon as possible. Although, the government should be congratulated for getting passed the Bankruptcy Law, more needs to be done and that too very soon to revieve sickening businesses so that they can repay soon.
Although, FDI inflows have increased a bit by 29 percent to $40 billion in the fiscal year ending March, revival seems to be missing in private sector in terms of investment made. The government needs to ensure that FDI inflow increases in the big sectors such as manufacturing. This will not only help in increased capital formation but reviving stalled projects.
Continuous volatility on the stock markets has led to weak investor sentiment. Sensex has almost reached to the same levels as when the present government took oath of office. In absence of strong structural reforms, this volatility seems to be remain in the market for some more time.
7.Employment generation/Economic Revival
India is poised to grow at 7 to 7.75 percent in 2016-17 after growing at an average 7.4% in the previous two years, ahead of China’s 6.9 percent expansion in 2015. The Modi government is struggling to create enough jobs which together created 135,000 jobs during 2015, 67 percent lower than the 421,000 jobs that were added in 2014, the last year of the UPA government.Creating employment remains a key challenge.