High-decibel policy reforms are absent so far at PM Narendra Modi’s 100th day in office, and may have to wait till assemblies like Maharashtra have been won. Although focus on fixing business climate is good for now hike in capital productivity, big reforms are vital for an 8%+ growth.
Here are the hits and misses of PM Narendra Modi-led NDA government’s 100th day in office:
Cutting subsidies
Expenditure panel set up to suggest changes, restructuring FCI on anvil, Aadhaar-based cash transfers to be expedited. No moves on raising LPG prices as was done for diesel
Fixing tax terror
No fresh use of retro law, courts to decide pending cases. Cut the 2.2 lakh pending disputes to 80,000 by April 2015
Fix time-consuming land acquisition law
BJP supported bad law, now consulting states on changes. Rajasthan-type changes?higher compensation, social impact study for only few projects?unlikely. Likely to carve out more exemption areas for defence, low-cost housing
hike FDI in insurance and defence
Insurance Bill stuck. Defence at 49%; govt hopes to get investors excited by clearing defence deals, some already done
Modernising agriculture
No move yet to give cash transfers to farmers instead of FCI purchase that benefits larger farmers in only few states. Some reduction in FCI purchases in states that offer bonuses
Goods and service tax
Still stuck with states coming up with new demands. Latest is states wanting full power to tax firms up to sales of R1.5 crore
Jan Dhan Yojana
Bank accounts for all families with R5,000 overdraft and insurance. Will work only if subsidies routed through banks
Fixing labour laws
Changed law on skilling and apprentices to give flexibility. More changes dependent on individual states like Rajasthan
Modifying centre-state relations
Finance Commission to decide on more automatic fund devolution, govt keen to limit Centre?s overarching role
Bank holding company to help raise funds
No decision as yet, critical if banks are to raise lending
