Modi 3.0's First 100 Days: A Mixed Bag of Policy Initiatives and Rollbacks
Narendra Modi, Modi 3.0, Indian economy, pension guarantee, health insurance, Pradhan Mantri Awas Yojana
Modi 30Indian EconomyPension GuaranteeHealth InsurancePradhan Mantri Awas YojanaFiscal ConsolidationInfrastructure PushReal Estate NewsSep 15, 2024
In the first 100 days, the Centre unveiled a guaranteed pension for its staff recruited after 2003, Rs 5 lakh-a-year health insurance cover to senior citizens above 70 years irrespective of income status, and 30 million new houses under Pradhan Mantri Awas Yojana in the next few years. These steps are in sync with the policy focus on priority groups like the poor, middle class, and women.
The call for restoration of the unfunded old pension scheme was resisted, and the government's new Unified Pension Scheme is fully funded. Under UPS, government staff would be entitled to 50% of average last 12 months' basic pay and dearness allowance as pension, inflation-adjusted dearness relief, pension to the spouse upon death of the pensioner at 60% of last pension drawn, and a minimum Rs 10,000 pension.
However, a reform-oriented approach to hiring talent from the private sector to assist the government in governance has been put on the backburner due to protests from a section for not having reservations based on caste. The Union Public Service Commission was forced to rescind an advertisement inviting applications for 45 posts of director, joint secretaries, and deputy secretaries under various ministries and departments.
The Budget 25 underscored the government's commitment to fiscal consolidation and keeping capex budget at elevated levels, despite resource constraints. The Economic Survey 2024 was noted for some radical suggestions, including wooing foreign direct investment from China and putting a stop to the practice of privileging capital over labor.
While commending the post-pandemic 'emergence of the Indian retail investor,' the survey warned against risk-prone market practices disguised as financial innovations and contended that a low-per-capita-income country like India could ill-afford these. It also stressed that employment generation is 'the real bottom line' for the private sector and called for 'maximum relief' for small and medium industries from the compliance burden they continue to face.
The policy announcements by the government haven't kept pace with these prescriptions. The Budget FY25 unveiled three employment-linked incentive schemes, but many experts have highlighted the lacunae in these schemes and their inadequacy in addressing the problem of high unemployment. The schemes are yet to be rolled out, as the details and operational parameters are being worked out.
The first 100 days of Modi 3.0 also saw the government rolling back the Budget decision to deny indexation benefits on long-term capital gains, which caused concerns among the middle class and the real estate sector, and the shelving of the broadcast Bill, designed to put fresh controls on online content.
The long-pending agenda of restructuring Goods and Service Tax with a reduction in slabs and rate rationalization has been given a fresh impetus, with the reconstitution of a group of ministers designated to suggest how these changes have to be made.
The government has extended the Rs 5 lakh health cover under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana to all senior citizens irrespective of economic status and a top-up of extra Rs 5 lakh health cover to senior citizens in the deprived section already covered under the scheme. The move would benefit approximately 45 million families with six crore senior citizens.
Given the rise in healthcare costs, which often pushes many households into poverty due to out-of-pocket expenditure, this is seen as a major social security net for the aged people. So far, the scheme was made available for 107 million poor households in the country since September 2018, roughly covering the bottom 40% of the population. People from this strata have already availed free healthcare worth Rs 1 lakh crore under the scheme after it was rolled out.
After providing financial support to build 4.21 crore houses under the Pradhan Mantri Awas Yojana since 2015-16 to assist eligible rural and urban households for the construction of houses with basic amenities, the Modi 3.0 has announced Rs 5.35 lakh crore financial assistance to build another 3 crore houses in rural and urban areas.
All the houses constructed under PMAY are provided with other basic amenities such as toilets, LPG connection, electricity connection, functional household tap connection, etc. through convergence with other schemes of the Central Government and State Governments.
Even though not yet officially announced, the Centre will likely begin a long-delayed population census this month to plug important data gaps in policymaking after years of criticism.
India's once-a-decade census was due to be completed in 2021 but was delayed because of the Covid-19 pandemic. It will take about 18 months to complete the new survey.
In conclusion, the first 100 days of Modi 3.0 have seen a mix of policy initiatives and rollbacks, with a focus on social security, infrastructure, and fiscal consolidation. While some steps have been taken to address the concerns of the poor, middle class, and women, others have been put on the backburner due to protests and criticism. As the government moves forward, it remains to be seen how these initiatives will shape the country's future.
Frequently Asked Questions
What are the key policy initiatives of Modi 3.0 in its first 100 days?
The key policy initiatives include guaranteed pension for government staff, Rs 5 lakh-a-year health insurance cover to senior citizens, and 30 million new houses under Pradhan Mantri Awas Yojana.
What is the Unified Pension Scheme (UPS)?
The UPS is a fully funded pension scheme for government staff, which provides 50% of average last 12 months' basic pay and dearness allowance as pension, inflation-adjusted dearness relief, pension to the spouse upon death of the pensioner at 60% of last pension drawn, and a minimum Rs 10,000 pension.
What is the status of the employment-linked incentive schemes announced in the Budget FY25?
The schemes are yet to be rolled out, as the details and operational parameters are being worked out. Many experts have highlighted the lacunae in these schemes and their inadequacy in addressing the problem of high unemployment.
What is the significance of the extension of the Rs 5 lakh health cover under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana?
The move would benefit approximately 45 million families with six crore senior citizens, providing them with a major social security net against rising healthcare costs.
What is the status of the population census, which was due to be completed in 2021?
The Centre will likely begin the long-delayed population census this month, which will take about 18 months to complete. The census was delayed due to the Covid-19 pandemic.
Tags:
Related News Articles
PBB's Q2 2024 Profits Plummet 74% Amid US Real Estate Crisis
PBB's profits fell sharply due to its exposure to the struggling US commercial real estate market, hit by rising interest rates, falling property values, and high office vacancies.
Gurgaon Real Estate Boom: How Dwarka Expressway is Transforming the Delhi-NCR Market
The Dwarka Expressway is rapidly emerging as a premier choice for investors in the Delhi-NCR real estate sector. Its strategic importance in national infrastructure plans has significantly driven economic growth and transformed Gurugram’s skyline.
Airbound, Mushin Innovative Labs, and OnePlay: A Deep Dive into their Funding Rounds
Explore the recent funding rounds of Airbound, Mushin Innovative Labs, and OnePlay, and understand how these investments are shaping the future of their respective industries.
Himachal RERA Rejects Late Homebuyer's Structural Defect Complaint
The Himachal Pradesh Real Estate Regulatory Authority (Himachal RERA) has rejected a homebuyer's complaint regarding structural defects in a flat due to the complaint being filed more than ten years after taking possession. However, the Authority has dire
REITs: The Safest Bet for Real Estate Investment
Industry experts, including Tata Realty CEO Sanjay Dutt, have highlighted Kochi as one of the most promising cities in India's real estate sector. However, they strongly recommend REITs as the safest way to invest in real estate.
How Technology is Revolutionizing High-Rise Construction in India
India’s real estate sector is undergoing a significant technological transformation, particularly in the construction of high-rise buildings. This shift is crucial for supporting the nation’s ambitious goal of achieving net zero emissions by 2070. With th