Modi, Moody and the Maverick

Prof. M. K. Bhat
Prime Minister Narendra Modi today stands as the tallest leader of the country and has maintained his popularity despite being in power from the last   three years.  Every time his detractors denounce him, he rebounds with even more acceptance from people. Pew Research center not only held Modi as a popular leader but also believed that public confidence in the economy has improved. He is bestowed with innumerous accolades like Chai Wala, Maut Ka Saudagar, non English speaking, latest being Non Hindu etc by tolerant/ secularists and Lutyens intellectuals. People least attend such rhetorics because they very well know the credibility of those coining such terms. These people have got Modi Phobia and criticize anything to demean him whether it is surgical strike or demonetization, GST etc He is accused of communalizing elections but those involved in creating threat perception in minorities are no less in polarizing game. Certain secularists have suddenly become Shiv Bhakats and are wandering from temple to temple for votes. Is it secular to use religion for votes? They have only one point agenda i.e. not to accept anything which goes to the credit of Modi.  The biggest beauty of Modi strategy is that he maintains continuous dialogue with people and shows flexibility to adjust their view point where ever it is necessary. His economic policies definitely stand much better than his predecessor – the economist prime minister of India. He is decisive, carries vision and continuously thinks of country first. His policies are designed with an idea to help the last person in the line.  His economic policies have started to prove the detractors wrong with an escalation in GDP to 6.3% after GST and demonitisation.
The recognition of Modi Governments’   economic transformation policies     by Moody, Standard and Poors and World Bank    has created ripples in the belly of all those who start their day with Modi bashing.  They speak through the rooftop when any institution grades present regime on the lower side but when the same institution praises the Government its authenticity is questioned. They spread rumors and create doubt about the genuine and bold steps taken by the present Government to rectify the various roadblocks in the growth and welfare of people.
Certain people fail to recognize the importance of steps like;  demonitisation, GST , insolvency and bankruptcy code, Krishi Fasal Beema Yogana, Mudra  yogana ,Jan Dhan yogana  etc, taken by the present regime. The salt to the feelings of such people was rubbed by the high appreciation these policies got from internationally acclaimed institutions like World Bank, rating agencies like Moody and now Indian statistical organization confirmed their beliefs by showing an escalation in GDP post GST.
The World Bank gave a jump of 30 places and put India at a rank of 100 in the ease of doing business. This conveys an improvement in the business atmosphere of the country. Moody rated India at Baa2 after a gap of 14 years, Standard and Poors without changing the rating for the country held that for next two years growth will be strong. Both Moody and Standard & Poors held an improvement in the business environment of the country and hailed the necessary steps taken to rectify it.
Upgrade by Moody is likely to develop a positive investment attitude among investors and may increase foreign investments in India. It can reduce cost of borrowing due to large number of investors and the spillover effect will give a big boost to the economy. Moody has forecasted a growth rate of 6.7% for the financial year 2018 and 7.5% for 2019 onwards, Standard and Poors almost held the same view. The slowdown was a temporary phase and is out now. Moody rated us on par with Italy and Spain but   India has an edge over these countries because Government debt stands at 68% while as it is 132.6% of GDP in Italy and 99.4% in Spain. The Government debt held by non residents in these countries is much higher than India’s. The recapitalizing of banks played a good role in getting a better rating. India’s ratio to bad loans to bank advances was 9.2% in 2016 and in Italy it stood at 17.1 %.
Among the reforms Moody appreciated GST, demonetization, inflation targeting monetary policy framework, the Bankruptcy Act, Bank recapitalization, Aadhar and the Direct Benefit Transfer system. It believes that measures taken to control the non performing assets of banks will improve the economic health of the country.
It may be worthwhile to mention here that investment will still be a big problem if obsolete labor laws are not done away with, land acquisition laws and filing of GST should be simplified and states shall stop extending free doles.
The maverick opposition has yet to learn how to behave as a constructive opposition. It is still obsessed by the feeling of being a part of earlier dispensation. They fail to realise that Narendra Modi is a democratically elected Prime Minister of India. They blame the present Government for all the economic and social ills the country is facing today. Those who ruled for sixty years after independence are blaming the present regime for farmer’s suicide, poverty, corruption etc as if everything wrong has taken place in last three years. They never ever utter a single word about 80 % of population without banking facility before three years, scams, policy paralysis, social divide due to appeasement of a few at the cost of many, obsolete laws, bad business environment etc .  They take the banner of secularism in their hands, create threat perception and make the weaker sections vulnerable to their self interest. Their appeasement policy has lead to the division of country on communal/caste lines. It is no doubt that people have  high expectations from the present Government but all the ills of last seventy years will take time to rectify as Rome  was not built in a single day.
It is an irony that leaders like  Sita Ram Yechury of CPIM held Moody’s rating as ease of how foreign business can milk India. He questioned even the credibility of such rating agencies. Rajeev Shukla depicted it as the failure of Modi and Moody to understand the mood of the nation and so on    ……. There are still others who held World Bank and Moody’s thums up to Modi Policies as a ploy to influence Gujarat elections.  These unconventional thinkers have a problem with anyone and everyone who comes out with praises for any policy of the Government. The country today is divided between those who feel happy with the achievements of the country and those playing petty politics.
These Maverick thinkers coin different terms like Bhagat, intolerant, rant on TV channels and get exposed in the eyes of people who silently  conveyed the message through UP Municipal elections and Gujarat will definitely follow it.
(The author is  Director (MAIMS) Guru Gobind Singh Indiraprastha University            Delhi)
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