In a rare intervention during discussion in Indian parliament (Lok Sabha/lower house) on “Agrarian crisis in India” on April 20, 2015, Rahul Gandhi, scion of Gandhi family and Vice-President, Congress (likely to be anointed as President soon) taunted Modi – dispensation as “Suit-boot ki Sarkar”.
Addressing a Kisan (farmer) rally on the previous day i.e. April 19, 2015, he had hurled another diatribe viz., “Modi took thousands of crores from industrialists/businessmen for funding his election campaign during 2013/2014 and will now be snatching away land from farmers to repay that debt”.
When seen in conjunction, the two statements tantamount to a very serious insinuation that government led by him works only to promote interests of industrialists/businessmen and shows no concern for millions of poor farmers and landless workers; indeed, it could go to any extent in robbing the latter to benefit the former.
“Suit-boot ki Sarkar” taunt – discredits 1.25 billion people!
Rahul owes it to 1.25 billion people – who gave an overwhelming mandate to Modi for running affairs of India – to give evidence or cogent arguments to substantiate his indictment. If, he cannot then, he should apologize for not just discrediting the prime minister but also demeaning the people and their hopes & aspirations.
An objective and dispassionate assessment of various initiatives and steps taken by Modi–government during the last 11 months of its stint in office amply demonstrate that assertions of Rahul Gandhi are figment of his imagination, to say the least.
Modi has delivered on ‘development’ & ‘good governance’
In a short span of less than a year, Modi has delivered on fast tracking policy reforms [relaxing FDI (foreign direct investment) norms in insurance, defence, railways]; governance reforms [disbanding GoMs (Group of Ministers), empowering ministers and encouraging bureaucrats to be innovative]; bringing transparency and accountability in process of taking decisions, increasing application of IT and focus on e-governance [all environment and forest approvals have been put on e-mode] etc. For decades, these things were seen only on paper but now these are actually happening.
The aforementioned changes have eliminated corruption [that had seeped in to almost every aspect of government functioning during a decade of UPA rule], enabled efficient and timely delivery of services, expedited approval of projects, and provided a “stable and predictable” policy environment and a “non-adversarial” tax regime to investors. Clearly, these hold potential for increasing jobs and income manifold and improving the efficacy of welfare schemes bringing relief to millions of poor in both urban and rural areas including the millions of farming families.
The impact is already visible in terms of acceleration in GDP growth during 2014-15 to 7.5% from a low of 5% in 2013-14; substantial reduction in inflation [for 5 consecutive months beginning November, 2014, WPI was in negative territory]; surge in foreign investment to a mammoth US$ 40 billion [60% of this in government securities – showing huge confidence in Modi]; reduction in CAD to 1.5% of GDP and cementing on fiscal consolidation despite legacy of splurging expenditure especially on subsidies.
Majority of poor and farmers have been empowered
Apart from policy dynamism and efficient governance for putting India on a high and sustainable growth trajectory that would benefit all sections of the society, government has also launched some major initiatives that seek to empower majority of the poor and integrate them in the economic mainstream. These include PMJDY (Pradhan Mantri Jan Dhan Yojna); restructuring of MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act); “Make in India” mission and coterminous with it Skill Development Initiative and boost to small and medium enterprises which offer maximum employment potential. For details, pl read:-
https://www.uttamgupta.com/economic-outlook/empowering-poor-vide-pm-jan-dhan-yojna/
https://www.uttamgupta.com/economic-outlook/leveraging-mgnrega-inclusive-growth/
https://www.uttamgupta.com/economic-outlook/modis-road-prosperity-neo-middle-class/
https://www.uttamgupta.com/economic-outlook/modis-tirade-corruption-black-money/
Amendments to Land Act (2013) are pro-poor & pro-farmer
Even amendments to Land Acquisition Act (2013) passed by UPA are meant to support farmers. The land acquired from owners will be used for building irrigation facilities, rural roads, other rural infrastructure including electricity, affordable housing, industrial corridors and national defence projects. These (read irrigation &un-interrupted supply of power) will help millions of farmers by improving crop yield and fetching higher returns from sale of agriculture produce (due to better connectivity helped by good roads) and help landless workers (there are some 300 millions) by providing them jobs on infrastructure and industrial projects.
The clauses for prior “consent” of 70% affected persons and “SIA” (social impact evaluation) studies in the 2013 Act are biggest stumbling blocs in the process of acquiring land and as many as 32 states and union territories felt that acquisition would never get consummated if these clauses remain on the statue. Vide the amendments, Modi – dispensation is seeking to drop these clauses only for aforementioned projects. For all others, consent & SIA will continue to be required. For details, pl read:-
https://www.uttamgupta.com/economic-outlook/land-acquisition-held-hostage-political-opportunism/
https://www.uttamgupta.com/economic-outlook/land-acquisition-ordinance-pro-farmer/
In this backdrop, whereby the sole intent of the amendments is to speed up the process of inclusive development, help millions of farmers and landless workers to come out of abject poverty and increase their income and absorb the ever increasing number of youths entering the workforce (over 10 million annually), Rahul’s allegation that lands will be given to corporate/industrialists; that this is a government for rich (suit-boot ki sarkar) is preposterous and fallacious!
Such insinuations (the latest in the series from Rahul is yet another charge that Modi – government is giving away internet to industrialists) might fit in to political calculations of mandarins in Congress ostensibly to rejuvenate its sagging fortunes (only time will tell). However, for enlightened public including farmers who cannot earn much from cultivating land with present technology and infrastructure, these will simply not wash.
Who is pro-corporate & anti-poor? – some reflections
Team Rahul also needs to be reminded that all along under a decade of UPA – dispensation (2004-2014), industrialists/big businessmen/real estate developers were favoured ‘systemically’ and ‘brazenly’ through policy changes and exercise of discretion in a totally biased and arbitrary manner. Such actions resulted in loss of hundreds of thousands of crores to the exchequer, funds that could have been utilized for development and benefit of the poor. Pertinently, Modi – government has acted with alacrity in undoing the damage done by UPA.
Allocation of coal mines
A well known and inglorious example of this is allocation of 204 coal mines by UPA – government during 2004-2010 in an “arbitrary” and “illegal” manner virtually for free to industrialists/businessmen connected with the political establishment. The CAG (Comptroller & Auditor General) had estimated a loss of Rs 186,000 crores (US$ 31 billion) due to this. In September, 2014, the Supreme Court (SC) declared these mines illegal and cancelled the allocations.
Modi – government has acted with speed auctioning these mines in an open and transparent manner – under full public gaze – based on clearly laid guidelines and criteria. Already, it has completed auction of around 30 mines garnering a whopping Rs 200,000 crores (US$ 33 billion) (a good slice of this money has come from original allot tees who were desperate to retain the mines) and further benefit of Rs 100,000 crores (US$ 17 billion) by way of reduction in power tariff. According to coal ministry, auction of all 204 mines will fetch a monumental Rs 1500,000 crores (US$ 250 billion).
The government has decided to give the entire money collected from auction to states where these mines are located. All these states viz., Odisha, Chattisgarh, Bihar, West Bengal etc are less developed and transfer of such humongous funds will help them a great deal in supporting development, building infrastructure and implementing welfare schemes for uplifting the poor and backward.
For more details on how the UPA regime allowed the national wealth to be expropriated by a select few and how the present Modi – government acted in the overarching national interest, pl read:-
https://www.uttamgupta.com/economic-outlook/cleansing-maligned-coal-sector-india/
https://www.uttamgupta.com/economic-outlook/coal-thieves-chanting-growth-mantra/
Spectrum allocation
Another glaring instance of favours showered by UPA – dispensation on industrialists/businessmen was allocation of spectrum (radio waves used for sending voice and data) in 2008 in an “arbitrary” and “discretionary” manner. According to CAG, this resulted in a loss of Rs 176,000 crores (over US$ 29 billion) to the exchequer. These allocations too were cancelled by SC in 2012 with a direction that spectrum be re-allocated following auction route.
As in coal, herein also Modi – government has acted with complete sincerity of purpose to undo the damage and in recently concluded auctions, garnered over Rs 100,000 crores (US$ 17 billion). This is in sharp contrast to UPA overzealously pursuing discretionary first-come-first-serve procedure (that too was manipulated to favour select companies) despite Dr Manmohan Singh then prime minister expressing his wish for following the auction route.
Pricing of domestic gas
A third glaring instance wherein the UPA – dispensation indulged in blatant favouritism in utter dis-regard of national interest was in regard to pricing of domestic gas. In January, 2014, it notified doubling of the price of gas from existing US$ 4.2 per mBtu (million British thermal units) to US$ 8.4 per mBtu based on a flawed formula (recommended by Rangarajan committee) that was specially crafted to confer a bonanza to RIL operator of high profile KG-D6 field in the Krishna-Godavari basin off AP coast.
The cabinet had approved this in June 2013 despite strong opposition from the ministries of power and fertilizers who argued that such a hefty increase would cripple millions of poor consumers especially farmers and substantially increase fertilizer subsidy thereby hampering fiscal consolidation. The financial burden was about Rs 50,000 crores (over US$ 8 billion) per annum. Despite this and direction by parliamentary committee to reconsider, government went ahead and notified price hike in January, 2014.
Luckily, in view of impending elections and embargo imposed by Election Commission, the aforementioned price hike was not implemented. Modi – government which took charge in May 2014 refused to buckle under pressure, modified Rangarajan formula and notified new pricing guidelines from November 1, 2014 with a price of US$ 5.6 per mBtu which is substantially lower than the level approved by UPA. From April 1, 2015, the price has been further reduced to US$ 5 per mBtu.
In view of above, whereas the decision of then UPA-government was a complete sell-out to RIL and its multinational partners, Modi – dispensation struck a judicious balance between interest of producers and consumers thereby sparing the sensitive sectors viz., fertilizers and powers a virtual nightmare. For details on how UPA regime allowed big industrialists to get away with largesse, pl read:-
https://www.uttamgupta.com/oil-gas/gas-pricing-plunder-camouflaged-incentive/
https://www.uttamgupta.com/oil-gas/kg-d6-gas-fiasco-defending-indefensible/
https://www.uttamgupta.com/fertilizers/rilbpniko-exploit-fault-line-rangarajan-formula-bonanza/
Land acquisition
Finally, even in the land sector which was the trigger for Team Rahul to take pot shots on Modi, there were umpteen instances of bending rules and regulations by then, Congress ruled states like Haryana, Rajasthan etc to expropriate/mis-appropriate tens of thousands of acres of land for the benefit of a select few including close-relations of Gandhi family. These are instances where farmers got a raw deal even in regard to compensation.
There are numerous other cases of UPA-regime involved in scams that unfairly benefited industrialists, businessmen and dubious traders/middlemen at the cost of exchequer and poor. No wonder, a senior minister in NDA – government aptly described UPA – dispensation as a “suit-case” sarkar even as he goaded Team Rahul to do some introspection before pointing fingers at others.
The message is loud and clear. Modi had got a clear mandate for good governance and inclusive development. He has delivered on both and is relentlessly pursuing his journey to ameliorate conditions of majority of poor. Amendments to the Land Act (2013) are an important milestone in this journey.
Industries – hold the key to more jobs
Apart from agriculture, he wants to promote industries and procuring land for the same is a necessity. What is wrong with that? Won’t farmers need jobs for their kith and kin? Where will landless workers get jobs? How will millions of other poor earn their living? How will 10 million youth entering job market annually be absorbed?
Rahul appears to be held hostage to a myopic thought. For him, taking land for industries connotes that this will bring gains only to industrial houses. Or may be, he has only seen this happening under UPA – rule when land was acquired primarily to enrich them and that too paying miniscule compensation to land owners. And, he wants to view Modi also from same glasses!
People should call a spade “a spade”
People of India must not allow themselves to be swayed by such false and misleading propaganda. All the more, when this is unleashed by Congress which never cared for them and allowed national wealth to be looted by a select few? In their own self-enlightened interest, they should call a spade, “a spade”. Under Modi, they have got a golden opportunity to lift them out of their state of deep distress. They must not let this to go waste. They have extended unstinted support to him on a host of issues and need to extend support on amendments to Land Act (2013) as well.