October 19, 2017

The Accidental Prime Minister and One Engine Theory

When an economist cum “Accidental Prime Minister” ran government for decade under United not so Progressive Alliance, doing a tight rope walk between power centers at 10 Janpath and PMO, he never talked about “economy running” on engines because economy was hardly running. It was plagued by “policy paralysis”. Economy was crippled. In Congress Working Committee meeting, he has been quick to point out that “economy is running on one engine of public spending”. We should thank our stars that economy is running.

Demonetization did slow down the economy and the upward swing will need a quarter or two to get the momentum going. The flip side to demonetization drive cannot be ignored completely. Real estate has become relatively more affordable thanks to rate cut and passage of real estate regulatory authority bill. Most of BJP ruled states have come up with drafts to set up the regulator while Karnataka, a Congress ruled state, is looking up to engines at 10 Janpath to get nod for draft for RERA. The delay in formation of draft rules by Karnataka government is unfathomable. Is the state government trying to get a way around regulations to favor builders? Well, it cannot be ruled out given state government’s penchant for “Steal Flyover” which could not take off thanks to citizen activism. The speed of growth engine has been thwarted by state governments like Karnataka and Bengal. Didi is still dilly dallying over GST.

Nasscom has confirmed that the industry will create 2.5-3.5 million new jobs by 2025. Startup ecosystem has been enabled to generate more jobs. According to Market watch, private sector has added 263,000 jobs in the month of March 2017. Khadi and Village Industries Commission is expected to cross Rs 45000 Cr during 2016-2017, creating employment for more than 163 lakh persons (Courtesy: The Economic Times, Mar 08 2016). Nearly 41,000 jobs were created under the Prime Minister Employment Generation Programme in the fiscal till July 2016. 7 crore people were provided jobs through self-employment under MUDRA scheme.

Congress think tank has painted a gloomy picture of the economy by selective portrayal of facts and a myth of “Jobless Growth” has been created. Creation of jobs cannot be left to the government of the day alone. The government should act as a facilitator and enabler for an environment that fosters job creation and the current government has been quick to implement necessary regulation to allow entrepreneurship flourish. The passage of bankruptcy bill is a great step and the ease of setting up business has seen a rise.

Picture Credit:Zee News


Disclaimer

About Sharat Chandra 163 Articles
Sharat loves to write about technology, social issues and current affairs with a dash of humour.
Contact: Twitter