1553600567194_ImpactIndia 2019

Supplement with Dalal Street Investment Journal

Produced by IFIMB School A NATIONAL
MOVEMENT
TO LAST BEYOND
TOMORROW



IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

Impact India 2019 From the Editor's Desk

Published by IFGIM B School From polling stations 15,000 feet above the sea level to a voting outpost for a sole
Supplement with Dalal Street hermit deep in the forests of Western India, General Elections 2019 promises to be
an unprecedented democratic saga, in the history of Independent India.
Investment Journal
At $7 billion (approximately Rs. 500 billion), this democratic exercise is already
Editorial Team being touted as the world’s most expensive. Around 900 million voters, from
Vijaysingh B. Padode across the country shall exercise their political franchise and over 8,000
Atish Chattopadhyay contestants would draw out their gauntlets to grab their share of the 543 pie.

Dr. Chetan Bajaj Typical to India’s tryst of embracing plurality all at once, the multitude categories
Dr. Rajendra K Sinha of voters, from the frigid deserts of Ladakh to the tropical backwaters of Kerala,
Dr. Rajashree Pandiyan aspire for and are united by a singular vision—that of economic development.

Dr. Rema Gopalan India’s economic report card under the NDA Government, between 2014-2019,
Dr. Pritam Ghosh can be highlighted by subdued inflation, higher & stable GDP growth and radical
Rajarshi Chakraborty improvement in the ease of doing business. Of course, the Industrial Production
Dr. Sangita Dutta Gupta (IIP) data and the issue of chronic NPAs that the Public Sector Banks are suffering
from, are some of the indicators that may raise scepticism. But aren’t these also
Dr. Nina Jacob decades-long legacy issues that need structural shifts?
Dr. Satish Kumar
Dr. Mafruza Sultana ‘Make In India’, campaigns to curb black money, measures to increase
transparency through legislation [the Insolvency & Bankruptcy Code (2016), the
Forum Bhatt Coal Mines (Special Provisions) Bill, (2015), the Mines and Minerals (Development
Lumina Bose & Regulation) Act (2015), the Finance Bill (2018)] and most importantly, the
Hemanth R Shankar promotion of meritocracy through sheer political will, have been some of the
Pruthviraj Kulkarni hallmarks of the government.
Maaz Ahmed
Mr. Vikram Limsay The NDA Government leveraged herculean efforts to enforce the G ST by July
Mrt. Sanjay Padode 1, 2017; a landmark reform that establishes ‘One Nation, One Tax’ in true sense
of the term. Of course, it is also a befitting tribute to Atal Bihari Vajpayee. While
Design: Print 2 Last Solutions on the one hand, India moves towards a monolithic taxation system, competitive
federalism has thrived, with the states striving to attract more investments through
Registered office; reforms.
IFIM Business School, 8 P & 9 P,
KIADB Industrial Area, Electronic City Modi’s diplomatic blitzkrieg (even if it were to go beyond protocol), in jugalbandhi
Phase I, Bengaluru, Karnataka 560100 with his resolve to establish direct connect with the ordinary citizens (through
reforms), has charmed the political fraternity and the farmer alike. The deregulation
APRIL 01 , 2019 of diesel, kerosene and fertilizer pricing, the Ujjwala Yojana, the Jan Dhan Yojana,
the Samman Nidhi Yojana and Shram Yogi Mandhan Yojana, have benefited over
220 million individuals.

If anything, the NDA government has hinged on a sharp sense of purpose to
promote inclusive socioeconomic development. While India decides its next
government through the course of the summer 2019, it may be worthwhile to
consider that whatever be the mandate, it is the mandate of the people. But
perhaps, what India needs the most today, is the continuation of the current
policies with a vigour characteristic of the past five years.

Sumantra Basu

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IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

Contents

Director’s Note 06

'Modus Operandi Develop India 07

Shifting Gear From “TalK” to “Do” 12

Leveraging Scaleable Solutions to Build Momentum for ‘Vision 2022’ 14

Forging A Sustainable Path To India’s Economic Rise 20

Development Reaching Poorest, Ensuring Better Life For All 24

A Holistic Manufacturing Ecosystem For High Trajectory Growth 28

Ensuring ‘Sabka Saath, Sabka Vikas’ 32

Projecting India’s Soft Power Through AYUSH 39

Boosting MSMEs Sector Through High Powered Reforms 42

Services Sector in India: A Story of Dynamic Growth 48

Swachh Bharat: Ensuring Cleanliness & Dignity for Ordinary Citizens 52

Modicare 55

Chalking A Strategic Roadmap to Provide Housing for All by 2022 58

FINANCIAL INCLUSION 64

Creating Holistic Policy Environment to Boost Agriculture 68

Through Policies, Schemes For Minorities and Special Groups 72

Digital India: Building A Digital Infrastructure for India 74

Ushering A New India Through Policies Focused on Youth Development 80

Boosting Services Sector 87

Reversing Brain Drain and Harnessing Yuva Shakti for India 90

Leveraging Conscious Capital In Education Sector 96

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Director's Note

Considering the contemporary Indian political We have looked at certain specific areas of governance
discourse, it won’t be an exaggeration to say that and their impact, namely Government’s Work Ethics,
in the Indian parliamentary democracy, the Prime Scalable Solutions, Sustainable Economic Growth, Inclusive
Minister’s position today is like the CEO of the Development, Manufacturing Ecosystem, Youth and
Nation who the people of the nation appoint (rather elect), Sports, MSME Reforms, Services Sector, Swachh Bharat,
making this the most important position in the country. With Comprehensive Healthcare, Financial Inclusion, Agriculture
the oncoming general elections for the 17th Lok Sabha, we Policy, Schemes for Minorities and Special Groups, Digital
are set to evaluate the incumbent CEO and either give him a India, Employment Opportunities, Reverse Brain Drain and
second term or elect a new one. Conscious Capitalism.

The job of the CEO is to deliver on certain parameters/ Our faculty have tried to understand how the government
promises for an organisation and be assessed on those has delivered on these key areas of focus. I thank my
parameters/promises. Similarly, a nation’s CEO needs to colleagues Dr. Chetan Bajaj, Dr. Mafruza Sultana, Dr. Nina
deliver on the promises made while presenting her/his Jacob, Dr. Pritam Ghosh, Mr. Rajarshi Chakraborty, Dr.
candidature before assuming the office and be assessed by Rajendra K Sinha, Dr. Rema Gopalan, Dr. Sangita Dutta
those who appointed him (the electorate, in this case). It is Gupta, and Dr. Satish Kumar for making an effort which can
important that the CEO’s performance is assessed against be a starting point for the electorate to take a conscious
key metrics and the future deliverables of the CEO need to decision.
be known by the people who have appointed that CEO.
I am also thankful to Mr. Vikram Limsay and Mr. Sumantra
So far, a dashboard hasn’t been created for the CEO of Basu for their articles. I thank Mr Sanjay Padode for his
the nation. The question is whether we need a dashboard contributory piece and for supporting in this initiative. I am
based on which the government and the Prime Minister can grateful to Shri V B Padode, Chairman of IFIM Business
be assessed? I believe, we must! – somewhere the process School for his blessings as well as the contribution to this
needs to begin to document the impact in terms of delivery publication.
of the promises made.
We expect to come out with a publication like this each time
As the government completes its tenure and the largest a government is to be elected and the CEO of the nation is
democracy of the world is gearing up to elect and appoint to be appointed. We hope that we will be able to come out
its new CEO, we, as at IFIM Business School, wanted to with a dashboard outlining the key metrics and to assess the
take stock of how the metrics look like. We wanted to give performance of the government against those metrics, going
this a start and we hope that this will lead to a discussion forward.
on what should be the dashboard to assess the CEO of the
nation. That is also very contextual because the metrices Atish Chattopadhyay, PhD
that are important for a developing nation like India will be Director
very different from the ones needed for the countries of the IFIM Business School, Bangalore
developed world.

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'Modus Operandi
Develop India

beginning of the 21st century. The then Prime Minister
demonstrated their mission for making India a super power
and an integral part of the developed world. The government
laid out its agenda for infrastructure development and
strengthening of its resolve to fight the powers that were
weakening the nation. Unfortunately, another decade was
lost as a directionless government came to power.

Vijaysingh B. Padode Fortunately, the seeds of development were sowed, and
the agenda continued its momentum without any impetus
Chairman from changing policies and governmental interventions. The
Centre for Developmental Education (CDE) Society elections of 2014 again established the aspirations of the
world’ largest democracy as development by providing a
Leaders have come and gone in the 72 years history sweeping majority to the NDA.
of independent India. The Indian economy has fought
battles to protect its borders and against poverty for Modi known for his singular focus on developing India was
keeping its population alive during this period. The elected as the Prime Minister and a new era dawned. He not
economy reached the verge of bankruptcy and survived by only pushed the machinery towards development, provided
forced liberalizing its economy. The liberalization was a boon a clear direction to the nation that black will be punished
and the bankruptcy seemed to have been god sent as it set and white will be cherished. He established to the world that
the economy in motion. India exists and that the world needs India more than India
needs the world. His Modus Operandi for Developing India
consisted of 3-point action agenda

The economy broke out of its Hindu growth rate and 1. Position India
started to cause a stir in the global arena. The power of the 2. Clean India
demographics, values and intelligence was unleashed as 3. Make India
entrepreneurs stepped on the accelerator and the brain drain
began to reverse. However as is evident all this happened Position India
because it had to happen. All of this could have been better
managed if the development of our economy was devoid of Prime Minister Narendra Modi proved himself to be as
personal agenda and focused on building a direction aligned comfortable on the global stage as at home. Modi’s
to a mission which never existed. foreign diplomacy has been one of the key highlights of his
government and his diplomatic outreach has reached far and
This was to change as BJP found its foothold in the wide in the last four years. Indian’s global presence is said to

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have become stronger since Prime Minister Modi came to “Let us bring ourselves in tune with the call of our times,” he
power. said, pointing out that the world was witnessing tensions and
turmoil on a scale rarely seen in recent history.
Ergo, Modi has been accused by foreign policy wonks of
conflating action with achievement. He has succeeded in No single country can determine the course of the world.
making significant steps with neighbors like China, evidenced There had to be a genuine global partnership. That was not
by the settlement of the Doklam standoff, which was just a moral position, but a practical reality. Putting aside
threatening to snowball into a major armed skirmish. differences, member states should mount a concerted effort
to combat terrorism and extremism, he said, urging them
However, Modi’s Pakistan policy and his overtures of peace, to adopt the Comprehensive Convention on International
including an impromptu visit, did not pay off as Pakistan Terrorism. His first attempt has always been to extend a
was not yet ready for development and was trying to resolve warm and friendly hand to the neighbors of India and this
its own governance battles between its armed forces and was evident from the invitations that he sent out to the heads
the democracy. At the UN General Assembly, Modi said he of neighboring countries during his swearing in ceremony
was prepared to engage in a serious bilateral dialogue with and by his strategic actions of inviting the heads of state to
Pakistan in a peaceful atmosphere, without the shadow attend our Republic day celebrations.
of terrorism, to promote friendship and cooperation.
Pakistan must also take responsibility for creating the right Modi also visited China, Germany and Russia four times
environment. in four years. Relations between Indian and China have
strained since the Doklam issue arose and these meetings
About twenty years ago, world leaders used to call Kashmir have defined the two countries’ relationships. Modi was one
a “law and order problem”, he lamented, suggesting of the first to congratulate Xi Jinping when he was re-elected
only now had they come around to understanding India’s as the president of China. Modi’s informal summit with
concerns. “Some countries are giving refuge to international China’s president Xi Jinping in Wuhan on April 27-28, 2018,
terrorists,” he said. “They consider terrorism to be a tool of is yet another example of harnessing the personal touch
their policy.” Modi called for collective responsibility and said, in diplomacy to further Indian’s interests and strengthen

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relations with the world at large. Today he is seen as a force campaigned extensively for developing a hygiene conscious
that is uniting the world against terror. attitude amongst the nation’s populace.

Clean India The cleanliness drive extended beyond toilets to the holy
river which is believed to cleanse people of their sins. The
Modi was the first leader who conceded that India was dirty National Clean Ganga mission delivered on its promise at the
and needed to clean up to be truly incredible. The potential Ardh Kumbh 2019. The organisation and the efforts of Clean
of India would make itself apparent as soon as the hygiene Ganga Mission were evident at this grand event.
and sanitation is taken care of. This was taken literally by
him when he addressed the need for India to become open Cleaning India mission of Modi extended to the policies
defecation free and also when demonetized the currency to of business. He made extensive efforts to drive the policy
get rid of the dirt money in the system. makers to simplify laws and regulations to make India climb
in the Doing Business rankings. Delays and red tape that
As part of Swachh Bharat Abhiyan, Modi aimed to achieve existed due to the convoluted structure of policy framework
an open defecation-free India by the 150th anniversary of dropped drastically to make India a more business friendly
the birth of Mahatma Gandhi, i.e. October 2, 2019. Open country.
defecation has always been a major problem in India
where one in ten individuals practices open-defecation. In 2016, the Lok Sabha repealed 1,175 of 1,827 laws
His Government pushed construction of toilets and also identified as obsolete, and many other steps were taken

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to make lives of common man easier. From self-attestation
to doing away with birth certificate for passport to tatkal
reforms, to easing I-T filing, these reforms went unnoticed in
the four years of Modi-led NDA government.

Modi demonstrated his propensity for meritocracy by
nailing many who had taken the system for granted for their
personal gains. He ensured that the government machinery
chased such fugitives in foreign land to bring them to justice.
He brought in greater transparency to award those who
contributed to the development and growth of the nation by
cleansing the politics around the coveted Padma awards
conferred by our Nation.

Make India

It’s a no brainer that the best action for fueling any country’s
economy is to build infrastructure and create livelihood for
the bottom of the pyramid. Modi accelerated the pace for
development of highways, encouraged the BJP run states
to build Metro networks in cities and major towns, put
into motion the lethargic machinery of the government to
complete infrastructure projects, promulgated schemes such
as Skill India, Make in India and Digital India.

Leveraged his well-established friendship with Japanese government’s trade policy were appreciated as the country
prime minister Shinzo Abe to secure concessional financing reduced tariffs ceding ground beyond the World Trade
for his dream project –the bullet train - and the civilian Organization’s demand.
nuclear deal. Cracked the whip on the banks to behave
responsibly and lend to the genuine entrepreneurs and wean The Make in India agenda of Modi is holistic and inclusive.
away from the cronies of the past. The economic growth of the nation had to be balanced
by improving the quality of life for the citizens of the
Fast forwarded the new bankruptcy code to help banks country. Modi knew very well that sustenance of growth
recover their dues and rejuvenate their balance sheets for and prosperity can only be attained by uplifting happiness
funding the growth of India. Fast tracked the disinvestments quotient of the demography. He demonstrated his conviction
in the PSU’s to raise capital for funding the fiscal deficit. towards women’s empowerment by easing the maternity
Accelerated the introduction of the GST to streamline indirect benefits of women and he passed an ordinance against the
taxation for fueling trade across various states and for Triple Talaq legacy.
reducing the drag on business. GST also helped reign in the
prevalent corruption in the now defunct taxation authorities His Jan Dhan Yojana pushed the banks to open more than
and departments. 300 million bank accounts to enable the government to
transfer direct benefits and disengage the clutches of the
At the international level besides establishing an image as
one of the best statesman of the decade globally, Modi

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roof to every person in India reflects a holistic vision backed
by a detailed and balanced thought process.

Modi slogged 24 hours and 365 days. He did not take a
single leave during his entire tenure. In spite of this grueling
schedule, he knew that there is no replacement for leading
by example and he did propagate the practice of yoga as a
panacea for longevity and health. He was also instrumental
in getting UN to declare a Yoga Day pushing India back into
thought and action leadership position globally.

When the whole academic world in the country had
practically given up on education reforms, Modi’s
government announced the Institution of Excellence,
Graded Autonomy amongst Universities and Institutions.
These policies were applauded by the intelligentsia
as these would bring the lost glory back to the
scholarly pursuits of the country and would surely
propel our universities across the various international
ranking.

The government’s commitment to transform 10 public and
private educational institutions into world-class ones further
corroborated the intent of making India a destination for
knowledge creation and dissemination.

middle men and defeat the corrupt who were continually Modi believes youth power is the answer if the 21st century
exploiting the inefficiencies of the legacy system. He will be that of India or China. He understands the need to
introduced the National Health Protection Scheme (NHPS) equip these youngsters with adequate skills and at the
for enhancing the health of the country. same time giving dignity to each and every skilled
professional.

His schemes for reaching piped gas and cooking gas to To attempt so much in five years is itself an outstanding feat,
homes of seven crore people of India relieved many women Modi pursued his intent relentlessly till it became action. The
from the daily suffering of inhaling the smoke from firewood journey for delivering all of the above was
and coal. The direct transfer of Rs 6,000 annually to the further compounded by the efforts of the opposition and their
small farmers is a true expression of his intent to fuel the cronies but Modi was unstoppable. His tenacity to deliver on
agri-economy without disrupting the banking system. his singular promise of “Achche Din” has been
well established by his action and there remains no doubt
Rural electrification has been a major policy success. that he is a patriotic leader who is fully committed to develop
Without last-mile connectivity, many villages were without India.
power, and the pace of rural electrification has been quickest
in Indian’s history. Thepace of airways and waterways has
been another outstanding success. His dream for providing a

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IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

Shifting Gear From
"TalK" to "Do"

Changing the paradigm of work culture in government

and hopelessness amongst people but over the years even
impacted macro-economic indicators making ours a laggard
economy in spite of all the inherent dynamism of its people.
Colluding economists even invented the derogatory term
“Hindu Growth” rate to put an official stamp of approval on
the results of this work culture.

Vikram Limsay All that has thankfully changed in the last five years. The
language and the manner of doing business has become
CEO & Principal Consultant Helicon Consulting target driven and accountability led. Narendra Modi who
has led this initiative to change the paradigm of work culture
Amost conspicuous and discernible positive change has been helped in his cause by brilliant no non sense
in the last five years of the Modi Government execution oriented ministers. Stellar amongst them being
is the change in work culture and the way of Nitin Gadkari, Piyush Goyal, Suresh Prabhu, Late Manohar
doing things. Suddenly the entire governance Parrikar, Rajyavardhan Rathore, Kiren Rijuju, J P Nadda and
mechanism, at least at the centre, seems to have shifted the likes. Perhaps the culture emanates from the ethos of a
gears from a “talk” to “do” mode. And the good thing is cadre based party with its roots in RSS where recognition
that this culture seems to be seeping down the pyramid. It’s is for work, delivery and effectiveness and not for lineage.
not uncommon now to find even corporators at the local The same culture can be seen even at the party organization
government level getting more execution oriented. level with Amit Shah and a slew of chief ministers like
Devendra Fadnavis , Yogi Adityanath and others who talk
For far too long status quo has been the norm. It was delivery and effectiveness as a habit.
expected and sadly even accepted that that matters of
governance and policy will move at a snails pace and Age is another criteria that drives this paradigm shift. Mr
execution would be of minimal priority. This was the Modi has selected a bunch at the central and state level
entrenched culture. Projects would be announced, ribbons largely in late forties and early fifties that has the right mix of
would be cut and foundation stones be laid with pomp and energy driven by youth and experience driven by age.
fanfare with an utter disregard to any thought of completion.
This complete lack of accountability, delayed half done The language of public discourse has changed. Even
projects and dismal execution not just resulted in frustration common folk want to speak in terms empirical and
quantifiable indices. KM of roads laid per day, villages
12 electrified per week, number of accounts opened, number
of surgeries done under Ayushman Bharat etc. are common

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kerbside discussion drivers. Target vs achievement is Naysayers will always be there but they need to be
the call. In that sense the government has become more discounted. As is there wont, the most common rant was
business-like with Narendra Modi acting as its CEO with to point out projects that were started by them many years
a perform or perish environment such that accountability, earlier. But that precisely is the point. The project was never
execution and delivery is paramount. And yes performance a priority. The concomitant grandstanding was and soon the
has been rewarded, classic case being of Piyush Goyal who foundation stone would be covered by weeds. There are
has been given additional charge of several sectors while innumerable such projects which had decayed even in the
some have even perished in this high pressure pace set by memory of people. This government brought a closure to
the Prime Minister. While this changing paradigm of work many such incomplete ones as result of the changed work
culture can be felt all around the ground level change will ethic. The list of such incomplete projects is endless. The
take some time to be seen. Hope we are all patient enough. Bogibeel Bridge in the East, The Chenani Nashri Tunnel in
the North, The Kollam Bypass in South, The Ro-Ro Ferry
Sometimes totally un connected areas are available for Service in West are all examples of projects completed
the government to showcase and exemplify its ability in a because of this execution oriented work ethic.
modular format. The Kumbh Mela was one such opportunity
and the government grabbed it with both hands to These slow moving projects and a status quo led work
showcase to the world what their new work ethic can deliver. culture was not just blocking expensive public money but
Over 30 Crore landed up in Prayagraj over fifty days and the was also testing public patience resulting in all around
organization that the government displayed was epic and top hopelessness amongst the people about the potentiality of
class. Infrastructure, roads, railways, security, cleanliness, India.
logistics every area was handled professionally and to the
best standards. If the Kumbh Mela organizing was any That thankfully has changed now and is the biggest
showcase of this paradigm shift then we as a country are contribution of the Narendra Modi Government. Changing
sure in for great times in future with this new work culture. the paradigm of the Governments Work Culture

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Leveraging Scaleable
Solutions to Build

Momentum for 'Vision 2022'

In 1990-91, the government, under the Premiership of
PV Narasimha Rao, unleashed a plethora of reforms that
liberalized the economy, by harnessing the power of free
markets and privatization. The reforms witnessed a huge
influx of multi-nationals coming into the country, while at
the same time, encouraging a new breed of entrepreneurs
to spring up and tap into the promising potential that India
harnessed.

Dr. Chetan Bajaj The years between 2008 to 2014 were marked by a tepid
growth outlook as a result of the global financial crisis and a
Professor - Marketing, IFIM Business School political inertia back home. The other turning point in India’s
economic fortunes came in 2014 elections as the BJP won a
“Ihave a milestone of 2022 when India completes 75 majority mandate, the first such after a span of almost three
years of Independence. We all should take a pledge, decades.
of something good that we want to contribute to the
country and promise to fulfil that pledge by 2022”, said Narendra Modi, with a proven credential of transforming the
Prime Minister Narendra Modi, in March 2017, unveiling his enterprising state of Gujarat into a model-state, took over as
plans for a New India at the BJP party-workers meet in New the Prime Minister of India. An administrator with a penchant
Delhi, in March 2017. for accelerated, focused reforms, Modi unleashed fresh
thinking and most importantly, unshackled the bureaucracy.
India economic development post 1947 until 1989, was
slow. A matter of point being that India and China were The Prime Minister stepped in where it mattered the most—
equally poor countries, during their independence. While ensuring transparency, fairness and quick decisions. Be it
China embarked on an aggressive path towards economic creating an amended framework for the transparent auction
development especially since the 1970s, India remained of minerals, prepping up manufacturing or advocating for
stuck in a 2-3% GDP growth (famously touted as the Hindu a Swachh India, Modi wholeheartedly focused on creating
rate of growth) for decades, dogged by licence Raj and a well-engineered reforms that kicked off a chain of credit
hyper-socialist mindset. positive, GDP accelerating events.

While traditionally one of the most promising Emerging

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APRIL 01 , 2019 Markets, as suggested by the BRICS acronym, coined by investor
Jim O’ Neill (then with Goldman Sachs), India’s faded sheen
among the global investment community began to resurface.

By 2017, India had overtaken China as the fastest growing major
economy in the World. While on the one hand, the mantra of
inclusive growth and a strong domestic consumption story pegged
the GDP on a strong wicket despite a tepid global outlook, critical
indicators such as the Ease of Doing Business Index and credit
upgrades by the sovereign ratings agencies went on to prove the
India’s fundamental story was intact and in fact getting better.

Modi Government came to power in 2014 with an express
mandate of increasing the rate of economic growth and ensuring
financial inclusion, through equitable distribution of income across
the lower income segments.

The years 2014-2018, have witnessed massive and
unprecedented improvements in infrastructure facilities with huge
increase in road network, railway connectivity, electrification,
provision of drinking water and sanitation facilities.

‘Housing for All’, which had remained an utopian dream for long,
has become a reality. The tax base has widened owing to the
introduction of the Goods and Services Tax (GST) and transparent
accounting practices, enforced through legislative amendments.
An unprecedented number of individuals are connected to the
mainstream banking system.

Before 2014, only 56 % of India’s six lakh plus villages were
connected by roads. The people living in remaining 44 % villages,
did not have access to roads and were cut off even from basic
education and healthcare facilities. If there is a single-most
indicative metric that could define the sheer grit to execute
infrastructure development, the NDA government’s impressive
record of developing roadways stands tall by a huge margin
as compared to the previous governments. It hardly comes as
a wonder then, that by 2018, over 82% of the villages were
connected by roads.

The average speed of construction of rural roads had increased
dramatically, from 69 kms per day in 2013-14, to 134 kms per day
in 2017-18. Most of Rural India now have access to rest of the
country.

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The speed of highway construction has also increased over NDA government between 2014-2018, have completely
two-fold from only 12 kms per day in 2013-14, to 27 kms transformed the face of Rural India. There has been huge
per day, in 2017-18. The National Highway Network has improvement in sanitation facilities, with construction of
increased from 92,851 kms in 2013-14 to 1,20,543 kms toilets in each household.
in 2017-18. The total length of all roads is now about 3.3
million Kms. Over the next five years, the government plans Rural electrification is almost complete, roads have reached
to build 83,677 kilometers (km) of roads by spending a the remotest rural villages, concrete, brick and stone houses
staggering Rs7 lakh crore ($108 billion). This is the largest- are being constructed at a rapid pace and Optical Fiber
ever outlay for road construction in India. cables have provided Digital connectivity, to the large rural
hinterland.
Railways is the backbone of India’s transport infrastructure,
both in terms of movement of people and goods. Before Poor Sanitation facilities and lack of toilets in rural
2014-15, India’s rail network was growing at a snail’s pace. households had contributed greatly to spread of diseases.
In the five years between 2009 to 2014, only 7,600 kms of Hence, construction of toilets in rural households, was the
Broad-Gauge lines were commissioned. prime focus of the Modi Government. Over a period of 67
years, from India’s Independence in 1947 to 2014, only
The development of comprehensive rail network gathered 6.5 crore toilets were built in rural India. Between 2014-
momentum within the first year of NDA’s tenure in 2014. In 2018, over 7.25 crore toilets have been built in rural India.
a span of just 4 years (2014-18), as much as 9,528 kms of A tremendous growth, this has resulted in huge increase in
Broad-Gauge lines have been commissioned, about 2,000 sanitation coverage in rural India from just 38.70% to 83.71
kms more than during the UPA rule of 5 years, between % in just four years.
2009 and 2014.
To take the initiative forward, the Ministry of Urban
During the last three years of UPA regime between 2011 Development has decided to give every household without
to 2014, track laying suffered and fell behind targets. Track a toilet, Rs 4,000 to construct a toilet, with an additional
renewal shot up by over 50% from only 2,926 kms in 2013- incentive share of Rs. 8,000 from the state government
14 to 4,405 kms in 2017-18. under the Swachh Bharat Mission.

In the three years, 2013-2014 to 2017-2018 the track Digital connectivity as stated earlier has seen a
renewal has been 11.5% faster than during the last three marked improvement under the NDA government.
years of UPA rule and exceeded targets by about 13 %. The Telecommunication and Internet connectivity, in rural areas
track renewal of 4,405 km of old rails in 2017-2018 has been over the last four years, is the best example of this.
the highest ever. The previous best track renewal was 4,175
km in 2004-2005, when a rehabilitation plan was finalized,
with a total fund outlay of Rs 17,000 crore.

The railways have gained notoriety for accidents, as the
institution grossly ignored safety. In 2013-14 there were
118 consequential train accidents. This went down very
substantially, to just 72 consequential accidents, in 2017-18,
a reduction of 62%.

As an agrarian economy, the countryside is pretty much
at the epicenter of affairs. Dynamic initiatives by the

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Between 2011-2014, only 59 Gram Panchayats were Accordingly, DeenDayal Upadhyaya Gram Jyoti Yojana was
connected by optical fiber. The number of Gram Panchayat’s launched, under which every village in the country was to be
connected with optical fiber shot up dramatically to 1.15 electrified, within 1,000 days.
lakhs between 2014-2018. Similarly, the number of common
service centers in rural India, shot up from just 83,000 pre- On April 28, 2018, Leisang, a tiny hamlet in the remote
2014, to over 2.92 lakhs in 2017. northeastern state of Manipur, was connected to the grid,
exactly 988 days thereafter, electricity had reached all the
India is gearing up for a massive digital transformation of its villages in India—a remarkable achievement indeed in a
vast hinterland. The government has launched BharatNet, comparatively short span of time.
a flagship program that will provide broadband connectivity
across India’s villages, by 2019, —at a cost of Rs. 34,000 In 2014, over four crore homes in rural India did not have
crore. access to electricity. The government has launched the
Saubhagya programme, with a total outlay of $2.5 billion, to
The first Phase of BharatNet was completed by December provide power connections to every household by the end
2017 and covered 100,000 Village Panchayats. By 2019, of March 2019. Under the programme to achieve 100 %
the Government plans to lay one million kms of optical fiber electrification target by March 31, 2019, a staggering 2.03
network—to bring digital connectivity to all the 2,39,000 million new households, have to be provided with electricity
Panchayats. connections, every month.

The National Optical Fibre Network (NOFN) is an ambitious March 31, 2019 will mark the dawn of a new era, when every
initiative to trigger a broadband revolution in rural areas. household in India, will have access to electricity. The World
NOFN was envisaged as an information super-highway Bank has now lauded India’s effort on electrification, in its
through the creation of a robust middle-mile infrastructure latest report on Energy Progress.
for reaching broadband connectivity to Gram Panchayats.
NOFN aims to connect all the 2,50,000 Gram panchayats The Government has also been committed to the efficient
in the country and provide 100 Mbps connectivity to all use of energy through greater usage of LED Bulbs which are
these Gram Panchayats. To achieve this, the existing fibres very energy efficient and economical in the long run. It has
of PSUs (BSNL, RailTel and Power Grid) were utilized and subsidized distribution of LED bulbs to the rural and urban
incremental fibre was laid to connect to Gram Panchayats poor.
wherever necessary.
Over 90 Crore LED bulbs have been distributed over the
Non-discriminatory access to the NOFN was provided to all last four years, 30 crores by the government sector and 60
the service providers like Telecom Service Providers (TSPs), crores by the private sector. Usage of LED bulbs has resulted
ISPs, Cable TV operators and Content providers to launch in total savings of over Rs. 40,000 crores to consumers,
various services in rural areas. The NOFN project was funded every year.
by the Universal Service Obligation Fund (USOF). Based on
NOFN experiences, newer, updated and upgraded version In 2015, Prime Minister Narendra Modi announced the
of BharatNet was conceived, as a nation-wide broadband ‘Housing for All by 2022’. The erstwhile Indira Awas Yojana
network. was re-nomenclated as the Pradhan Mantri Awas Yojana
Grameen, and another scheme Pradhan Mantri Awas Yojana
In 2014, when the NDA took over the reins of the Urban, was launched in 2015. Under both these schemes a
government, the World Bank reported that India had the total of 50 million houses have been targeted to be built by
largest un-electrified population in the World. In 2015, financial year 2022, including twenty million in urban areas.
an audit identified 18,452 villages, without electricity.

APRIL 01 , 2019 17

IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

The government’s budgetary support for these schemes has and non-metros respectively. This effectively increases
risen from Rs 11,600 crore in FY16 to Rs 29,043 crore in the size of the affordable housing market across India.
FY18. Over the last four years, 2014-2018, almost one crore
houses were constructed in Rural and Urban areas. This is a ●● To augment the sops announced in the budget, a
record for construction of houses. new Credit Linked Subsidy Scheme (CLSS) for the mid-
income group was announced with a provision of Rs
Housing for all remained a remained an unachievable wish 1,000 crore.
since the country’s Independence in 1947. There are a
plethora of reasons for this. Acquisition of land in urban areas In India, the number of income tax payers are a small
at an affordable price has been difficult; this combined with percentage of the total population. Many people evade
inadequate infrastructure and a lengthy approval process -- taxes and do not file Income Tax Returns (ITRs). The Modi
has made the progress very tardy. government had come to power with a strong commitment
to unearth the huge amount of black money in the economy
But the Modi government is taking the bull by the horns and and pump it in the mainstream economy for productive
taming it. First, it is giving a subsidy of the 6.5 per cent at purpose.
the lowest rung of the ladder. Secondly, it is crediting the
entire subsidy of a 20-year loan, to the loan account of an This becomes essential to raise funds for developmental and
applicant, which reduces EMI, thus making it more affordable social expenditures. The government has also given high
to the applicant. Thirdly, they have allowed withdrawals from priority to increase tax compliance, by bringing more people
the Employee Provident Fund Organization (EPFO) to the under the tax net and thus diversify the tax base.
extent of 90 per cent of the amount, for housing, in case
there is a group of eight other people, who are doing so, for Two major initiatives by the Modi Government to unearth
a house, in the same society. black money and improve Tax compliance have been
demonetization and implementation of the Goods and
The Government has also announced following schemes and Service Tax (GST). These initiatives have been hugely
incentives to promote growth in the housing sector: successful in drawing out the black money and improving
India’s tax compliance.
●● Affordable housing has been granted infrastructure
status, giving developers access to cheaper sources The number of total registered tax payers in India in Pre
of funding, including external commercial borrowings GST-era, before 2017, was only 65 lakhs, a very small
(ECBs). fraction of total population. Post implementation of GST It
grew very substantially, to over one crore, an increase of over
●● Promoters of affordable housing have been granted 50%. This shows the great success achieved by the NDA
more time for project completion. The deadline has government, in widening the tax net.
been increased from three years to five years.
Similarly, the number of Income Tax Returns registered a
●● Developers will get a year’s time to pay tax on phenomenal 80.5 % jump from just 3.79 crores in 2013-
notional rental income on completed but unsold units. 2014, to over 6.84 crores in 2017-2018. Net Income
The tenure for long-term capital gains for affordable Tax collections in 2017-2018 crossed Rs. 10 Lakh crore,
housing has been reduced from three to two years. recording an increase of over 18 % compared to 2016-2017.
On a clarion call from the Prime Minster, over 5.5 Million
●● • The qualifying criteria for affordable housing have Consumers have also given up their cooking gas subsidy
been revised to 30 square meters and 60 square meters that has saved the government Rs. 900 crore.
on the carpet, rather than the saleable area, for metros

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APRIL 01 , 2019 Rapid and equitable economic growth has been the prime objective
of the Modi Government. One of Modi Government’s most dynamic
and successful initiatives has been “Pradhan Mantri Jan-Dhan Yojana
(PMJDY)”. This initiative leverages technology to ensure that most
deprived and excluded sections of the society have basic savings bank
account and access to various financial services, including need-based
credit, remittances facility, insurance and pension facility.

In a way, PMJDY is a National Mission on Financial Inclusion. Every
beneficiary would get RuPay Debit card having in-built accident
insurance cover of Rupees one lakh. The plan also envisages
channeling all Government benefits (from Centre/State/Local Body) to
the beneficiary’s accounts and promoting the Direct Benefits Transfer
(DBT) scheme of the Union Government. Technological issues like poor
connectivity, are being addressed to make PMJDY a roaring success.

On August 28, 2014, the inauguration day of PMJDY, over 1.5 crore
bank accounts were opened. A record 18,096,130 bank accounts
were opened between August 23-29, 2014. On 20 January 2015, the
scheme entered into Guinness book of world records for the most bank
accounts opened in one week.

By September 2018, over 31.52 crore (315 million) bank accounts were
opened, which is equal to the population of USA and over `792 billion
(US$12 billion) were deposited under the scheme. Now, every family
in India boosts of a bank account, opened under Jan Dhan scheme.
Social Security was made a nation-wide Phenomenon with Jan
Suraksha. Under this scheme more than 19 crore people were insured
against Life and accident risks or assured of pensions.

The successful Implementation of all developmental programs initiated
by the Modi Government will change the face of India. The General
Elections 2019 are a critical juncture that shall decide India’s future
growth trajectory and its path towards a sustainable development.

If the NDA government comes back to power the scale and speed of
change will further accelerate. Infrastructure Projects of massive scale,
such as Bullet Trains and Smart Cities will see the light of the day. India
will become the manufacturing hub of the world. Digital India will have
become a reality. Unemployment would be at an all-time low. The huge
manpower of this country, which constitutes the largest work force in
the World, will have helped India emerge as one of the most dynamic
economies in the World and a powerhouse for the Global Economic
Growth.

19

IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

Forging A Sustainable Path
To India's Economic Rise

too documents the global economy seems to be leaving the
legacy of the Great Recession behind.

GDP Growth Rate (at current prices): 2013-2018

India’s GDPcurrent prices): 31%

World GDP 4%

Dr. Rajendra K Sinha Given the robust global economic growth, global GDP
Professor & Chairperson, Centre for Excellence in growth has been projected around 3.1% in 2018 before
its gradual slowdown over the next two years. For the first
Banking, IFIM Business School time from 2010, the long-term (10-year-ahead) consensus
forecast for global growth appears stabilized.
“ We have taken several important decisions
associated with reforms and the government On India’s growth rate projection next fiscal, the ADB said:
will continue to do so. Steps are also being “Growth in FY 2018-19 is expected to rise to 7.6% as
taken to maintain the financial stability of measures to strengthen the banking system bolster private
the country and to increase investment and to speed up
economic growth”, said the Prime Minister Narendra Modi
in October 2017, listing out the achievements of the Modi
government.

The aftermath of the global financial crisis of 2008 was
marked by a prolonged phase of tepid economic growth,
dimmed prospects across the emerging and frontier markets
and an even gloomy story for the advanced economies.
Even the global driver of economic growth, China, began to
falter.

While India caught a slight flu, strong domestic consumption
and sound fundamentals, akin to an aspirin, kept any dip in
check. The Global Economic Prospects report (June 2018)

20 A P R I L 0 1 , 2 0 1 9

IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

While retaining India's projected growth rate for the current and the next fiscal year,

GDP Ranking GDP (PPP) Ranking(billions of Int. $) GDP (Nominal) Ranking) (billions of $)
Country
Rank 2018 % share 2023 Rank % Growth Rank 2018 % share 2023 Rank % Growth
China 2
United States 1 25,239 18.7 37,067 1 6.86 1 14,093 16.1 21,574 2 6.86
India 2 7
Japan 3 20,413 15.1 24,537 2 2.27 3 20,413 23.3 24,537 1 2.27
Germany 4 4 2,848 5 6.74
Russia 5 10,385 7.69 16,785 3 6.74 3.25 4,663
Indonesia 6 11
Brazil 7 5,619 4.16 6,358 4 1.71 16 5,167 5.9 5,962 3 1.71
United Kingdom 8
France 9 4,374 3.24 5,171 5 2.51 9 4,211 4.81 5,272 4 2.51
World 10 5
4,169 3.09 4,933 7 1.55 6 1,719 1.97 1,974 12 1.55

3,492 2.59 5,033 6 5.07 1,074 1.23 1,549 16 5.07

3,389 2.51 4,168 8 0.98 2,138 2.44 2,717 8 0.98

3,029 2.24 3,598 9 1.79 2,936 3.36 3,477 7 1.79
2,925 6 1.85
2,960 2.19 3,544 10 1.85 3.34 3,586

1,34,981 1,78,018 87,505 1,14,353

GDP rankings of top 10 global economies(Source: International Monetary Fund World Economic Outlook , April - 2018)

For the past few quarters now, India has consistently been the fastest-growing major economy globally. The Asian
Development Bank (ADB) has stated that India is the dominant economy in South Asia with its growth gaining momentum at
7.7% in the quarter-ended March of 2017-18, the highest growth since Q1 2016-17.

distinctive competencies and competitive advantages

formed by knowledge-based services make it an emerging

Growth in India’ share of World GDP 6.74% market. The services sector has the potential to unlock
(2023P) immense opportunities.

3.25 % The production of food-grains in 2017-18 was 284.83 million
(2018) tonnes (third advance estimate), compared to 265.04 million

2.43 %
(2013)

1.75 % tonnes in 2013-14. GDP from Agriculture in India averaged
(2005) INR 4,057.73 billion from 2011 onwards, reaching an all-time

high of INR 5,666.82 billion in the fourth quarter of FY 2016-

17, and a record low of INR 2690.74 billion in Q3 of 2011.

inOvensIntmdiae'sntgraonwdth arastebpernojecfittisonknicekxt ifniscfarol,mtheGASDTB. sAanidy: “fGurrotwhtehrin FY 2018-19 is
inepcxrripveeaactesteeidnivnteosotrmiilseepnrttiocae7ns.d6p%aosasbseesmneaefaitdssuokrweicskntsionidsfetrroermnisgkGthSetonT.gthAreonywbaftunhrk.thi”negr sinycsrteeamsebToinlhsteoeirlvalue of merchandise exports and imports increased

prices poses a downside risk to growth." 17.6% and 21.3% respectively in USD terms in June 2018

ThfTrehoem CCIsIIIe AActSSoCrCaOlONinNdQuQ1sFt1rYyF1Y9as1ssu9orcvsieauytirotvrnaescy.kOstrnsaectchktoesrapslregocrdoutwocttrhiaontlhgrforrooungwth,trhseosmpoensseesctgoarsronsevhreeardll June 2017. Forex reserves stood at USD 400.10 billion
thwroitnuegshsaresstepaodny sgersowgtharninertehed ffororemseesaebcletofruatul rine.duFosrtryinstance, theautomaosbiilne August 2018.
asinsdoucstiraytihoanssc.onOtinnutehdetopdroomdiuncatteiothneefrxopnotrt, sscoemnaeriosaescwtoelrls. shall

The services sector is not only the dominant sector, but has also attracted significant

wfiotnreeigsns ainsvetestamdeyntg, roawndthcionnttrhibeutfeodrestoeeeaxbploertfsutuanred. Fgoenrerated large-Gscoailneg forward, merchandise exports rose 19.2% year-on-

inkesnmtoapwnlolceydemg,eetn-hbt.eaIsnaedduiats’osemrdvisiocteibnsciltemivaeinkcedouimtsaptnertyee mnhceaiersgsincagondnmtcaionrkmuepet.edTtithtiveoesdaedorvvmiacneintsaagsteeecstoforrhmayesedtahbrey in August 2018, though India’s trade deficit widened to

thpeoteexntpiaol rtot suncleocnkairmiomaenssewoepllp.ortunities. USD 17.39 billion from USD 12.72 billion in the same month

The production of food-grains in 2017-18 was 284.83 million tonnes (third advaanyceear earlier, it compared with the market expectations of a
ThIenesdtiimsaeaartveve)ir,caecgosemdspIeaNcrRetdo4r,t0oi5s276n.75o3.0tb4oillnmiolinyllioftrhnometod2n0no1em1s ioinnnaw2n0at1rd3ss-e,1c4ret.oaGcr,hDibPnguftraonhmaaslAl-gtimriceulhtuUigrehSDoinf 17.25 billion gap.

al2IsN6oR90a5.t7,t64r6ab6ci.ll8tieo2ndbinislliiQogn3nioifnifc2tah0en11tf.ofourrtehigqunairntevreosftmFYe2n0t,16a-n17d, canodntaribreuctoerddlow of INR
toTehexpvoarlutse aonf dmgeercnhearnadtiseed elaxrpgoerts-scanadle iemmpoprtlsoyimncerenats.eIdnd1i7a.’6s% and 21.3%

respectively in USD terms in June 2018 over June 2017. Forex reserves stood at

USD 400.10 billion as in August 2018.

A GPoRinIgL fo0rw1ard, , 2m0e1rc9ha ndise exports rose 19.2% year-on-year in August 2018, 21

though India's trade deficit widened to USD 17.39 billion from USD 12.72 billion in

the same month a year earlier, it compared with the market expectations of a USD

17.25 billion gap.

IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

Government of India has taken initiatives for an all-round India’ world ranking in ease of doing business Rank 77
development. India launched the Make in India program to (2018)
place India on the world map as a manufacturing hub and
give global recognition to Indian economy. India is expected Rank 100
to become the fifth-largest manufacturer by the end of 2020. (2017)
Under Make in India, the Government aims to increase the
share of the manufacturing sector in the GDP to 25 per cent Rank 130
by 2022, from 16 per cent, and to create 100 million new (2016)
jobs by 2022. 
Rank 142
Mobile (2014)
Manufacturing
India’s ranking in ease of doing business has taken a
Units 120 quantum leap in a short phase of just two years. The
( up from 2) country’s rank in the World Bank’s Ease of Doing Business
2019 survey climbed 23 places to 77 among 190 countries
India becoming a surveyed, making it the only country to rank among the top
leading Mobile 10 improvers for the second consecutive year.
Manufacturing
A number of programs being implemented by the
Hub government aims to increase farmers’ income. The necessity
(during 2014-18) is to foster synergy in these programmes for success
of various policy initiatives of the central government for
Mobile Handsets Worth of Mobile creating an enabling environment for enhancement of
produced 22.5 cr Handsets produced: farmers’ income.

(up from 6 cr) Rs 1.32 lakh cr The Government has recognizing the importance of growing
(up from 18,992 cr) services sectors, has extended several incentives for
sectors like healthcare, tourism, education, engineering,
Hardly a surprise then, that India today has become one communications, transportation, information technology,
of the most attractive destinations for investments in the banking, finance, management, etc.
manufacturing sector. The country has become a leading
mobile manufacturing hub. The Government has taken
initiatives to promote a healthy environment for the growth
of manufacturing. Some of the notable initiatives and
developments are:

●● New industrial policy Goods and Services Tax (GST) is going to help the
●● In Budget 2018-19, the government reduced the I-T economic growth of the country by efficient tax collection
rate to 25% for companies with turnover up to INR
250 crore (USD 38.75 million).
●● The phased manufacturing program (PMP)
has been launched.
●● Ease of FDI in defense under the automatic route
to 51%
●● The government approved the ‘Strategic Partnership’
model to enable private firms to tie up for
manufacturing defence products.
●● Modified Special Incentive Package Scheme (M-SIPS)
has been accepted

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with the motto of ‘one country, one tax, one market’, on its The “Unified Shram Suvidha” Portal of the Ministry of
implementation from 1st July 2017. Labour and Employment brought in October 2014, has
been envisaged as a single point of contact between
Opening of commercial coal mining sector to private players; employer, employee and enforcement agencies, bringing in
transparency in resource allocation with 89 mines allocated; transparency in their day-to-day interactions.
promulgation of Real Estate Regulation Act for protecting
the buyers rights; and moving forward the disinvestment The infrastructure sector is another area where the
processes by crossing the target of Rs 72500 crore are government has been not just diligent, but innovative. Some
viewed as some of the bold reforms by the government. of the steps taken in the recent past are being discussed
hereafter. The announcements in Union Budget 2018-19,
The promulgation of the Insolvency and Bankruptcy Code included the massive push to the infrastructure sector by
has been a historic initiative. The focus of this legislation is at allocating INR 5.97 lakh crore for the sector.
providing resurrection and resolution.
The noteworthy initiatives of the government are the ones for
Following the government bringing the Payment Wages infrastructure boosting through the “Bharatmala” project to
(Amendment) Act 2017, the applicability of the Act will cover develop and expand approximately 40,000 km of roads at an
the enhanced wages ceiling from INR 18,000 per month to investment of INR 6.9 lakh crore by 2022.
INR 24,000 per month, and thereby benefit a larger number
of employees. India's Global
Competitive Index
Doing away ranking : 40 (2017-18)
with

Cascading
e ect of

Taxes

End of Ease of Signi cant India's Global
Multiple doing decrease in Competitive Index
Taxes: Relief Business Transport ranking : 71 (2014-15)
to Small Overall times with
Traders & Reduction elimination of The deceleration in GDP growth rates below 7% between
in Prices check-posts Q3 2016-17 and Q2 2017-18 were attributed to temporary
disruptions in economic activity as the economy adjusted
to demonetization and businesses prepared for the GST.
However, against the background of government initiatives,
the growth prospects in the medium and long term appear
stable, diversified and resilient.

Global sentiment from FIIs, sovereign wealth funds, multi-
nationals cueing up to set up base in India, tech leaders
and the international political community, signal rational
exuberance, towards an irreversible growth story. With
the NDA government at helm, this positive sentiment shall
be channelized to forge a stronger path for the nation to
accentuate its inimitable rise.

APRIL 01 , 2019 23

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Development Reaching
Poorest, Ensuring
Better Life For All

dr. Rajashree Pandiyan ●● While the UPA government enacted the Unorganized
Sector Workers’ Social Security Act 2008, the current
assistant professor, iifim college government is ensuring that the daily wage labourers
get their basic rights
“My government is working for the common man.
Our priority is the poor of the country. We want ●● It is noteworthy the 7th Pay Commission announced
good governance through a dynamic and in 2016 has benefited 5 million employees and 3.5
seamless government”, said Prime Minister Modi million pensioners
during a conversation with India Inc in April, 2015. The NDA
government has taken substantial measures since coming ●● The Centre contributes 12% to the Employees’
to power to ensure the levels of development of the country Provident Fund for new recruits in the public sector
envisaged by the current NDA government reaches the
grassroots and touches the lives of all. ●● Gratuity ceiling has been enhanced from Rs.10 lakhs
to Rs.20 lakhs since 1st January, 2016. This has
The Shrameva Jayate Scheme was announced by the Prime been applicable to both the public and private sector,
Minister in 2014 to introduce a whole host of reformative and ensures higher savings for the employed and
measures for improving the working conditions and minimum those who have retired since 1st January 2016.
wages of construction workers, daily wage labourers and
those in the unorganized sector. ●● The Apprentices Act, 1961 was amended to ensure
all apprentices and interns get at least some money
Some of the major steps implemented as a part of the for their work as stipend.
Scheme are as follows:
●● The Payment of Wages (Amendment) Act 2017
24 brought into force last year provides that employers
need to pay wages either in cash or cheque or
by crediting the wages in the bank accounts of the
employees. This was done to guard against delayed
payment of wages.

●● Under the Shrameva Jayate Scheme, a Unique
Labour Identification Number (UIN) has been allotted

APRIL 01 , 2019

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to all daily wagers to identify them individually, Deen Dayal Upadhyay Gram Jyoti
recognize their efforts and also to ensure that no Yojana.
individual labourer misses out on receiving any kind
of social security benefits that the government may The Pradhan Mantri Sahaj Bijli Har Ghar Yojana or the
announce for them from time to time. ‘Saubhagya’ Scheme was launched on 25th September,
2017. Under the scheme, the government shall provide free
The Antyodaya Mission announced in the Union Budget electricity connections to all households (both APL and poor
2017-18, has been initiated to make difference in the lives families) in rural areas and poor families in urban areas. Rural
of 10 million households across 50,000 Gram Panchayats. Electrification Corporation (REC) has been designated as the
A Mission Mode Project envisaged by the Ministry of Rural nodal agency.
Development, the Antyodaya Mission is a comprehensive
and integrated system for enhancing the efficiency and Under the scheme, as of date, over 21 crore (over 99%)
effectiveness at Gram Panchayat Level. It is a convergence households across rural India have been electrified. The
framework for measurable effective outcomes on parameters total households that are yet to be electrified are 19,372. It
that transform lives and livelihoods. is impressive to say the least. Under the scheme, DISCOMs
have organized camps across rural India to facilitate on-
Official data from the mission website shows within one and the-spot filling up of application forms including release of
a half years 206,855 gram panchayats have been covered. connections to households. DISCOMs/Power Departments
Also the Centre is in the process of reaching out to 15,162 will adopt innovative mechanisms like dedicated web-portal/
more panchayats. This shows the central government has Mobile App for collection/consolidation of applications forms
been successful in delivering benefits going to over four in electronic mode and releasing connections. Providing
times of what it had planned and promised. last mile connectivity and electricity connections to all un-
electrified households in rural areas.
It is also critical to draw focus on the Deendayal Upadhyaya
Gram Jyoti Yojana (DDUGJY), a marquee initiative designed The Saubhagya Scheme ensures that households have
to provide continuous power supply to rural India. As of the access to Solar Photovoltaic (SPV)-based standalone system
date of publishing, over 586,567 villages across the country, for un-electrified households in remote and inaccessible
have been electrified across the length and breadth of India. villages / habitations, where grid extension is not feasible or
Statistics show 217 million rural households have been cost effective. Providing last mile connectivity and electricity
electrified under the scheme till date. Some of the salient connections to all remaining poor households in urban areas,
points of the DDUGJY are as follows: is at the heart of the scheme.

●● Separation of agriculture and non-agriculture feeders
for better supply to agricultural & non-agricultural
consumers

●● Strengthening and augmenting sub-transmission &
distribution infrastructure in rural areas

●● Rural electrification for completion of targets laid
down under Rajiv Gandhi Grameen Vidyutikaran
Yojana for 12th and 13th Plans by
subsuming the Rajiv Gandhi Grameen
Vidyutikaran Yojana into the

APRIL 01 , 2019 25

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Pradhan Mantri Jan Dhan Yojana (PMJDY) is the National 1.25 bank mitras are committed to delivering branchless
Mission for Financial Inclusion to ensure access to financial banking services across rural India. Also, the Indian postal
services, namely, banking/ savings & deposit accounts, payments bank has taken the banking system to the
remittance, credit, insurance, pension in an affordable doorsteps of the underprivileged and those who do not have
manner. A bank account can be opened in any bank easy access to the banking system in India.
branch or via a Business Correspondent (Bank Mitra) outlet.
Accounts opened under PMJDY are being opened with The Indian Postal Payments Bank (IPPB) gives the poorest
Zero balance. However, if the account-holder wishes to get the opportunity to enjoy banking at home with doorstep
cheque book, he/she will have to fulfil minimum balance services. The wide network of post offices and postal
criteria. employees will make banking accessible to the remotest
corners. They can open a bank account, transfer funds,
Some of the special benefits under PMJDY Scheme are: deposit and withdraw cash, recharge or pay bills and
●● Interest on deposit. accomplish much more with our Doorstep banking services,
●● Accidental insurance cover of Rs. 1.00 lac at nominal charges.
●● No minimum balance required.
●● The scheme provide life cover of INR 30,000 payable The IPPB has leveraged and connected 155,000 post offices
on death of the beneficiary, subject to fulfilment of the and helped over 3 million postal employees coordinate
eligibility condition. with each other to deliver a whole host of services at the
●● Easy transfer of money across India doorsteps of the poor and rural people. This has proven to
●● Beneficiaries of Government Schemes will get Direct be an extremely innovative step so far as now the banking
Benefit Transfer in these accounts. system has successfully reached out to the needy rather
●● After satisfactory operation of the account for 6 than them having to run around from pillar to post for
months, an overdraft facility will be permitted opening of accounts, maintaining deposits with banks etc.
Also the IPPB system has made the post offices across the
The Claim under Personal Accidental Insurance under country more efficient and progressive and has helped to
PMJDY shall be payable if the RuPay Card holder have remove the earlier impression from the minds of the people
performed minimum one successful financial or non-financial that the Indian postal service is vastly unreliable and does
customer induced transaction at any Bank Branch, Bank not provide any special facilities for the underprivileged.
Mitra, ATM, POS, E-COM etc.
Pradhan Mantri Suraksha Bima Yojana (PMSBY) is one
Channel both Intra and Inter-bank i.e. ‘on-us’ (Bank of three social security schemes that the government
Customer/RuPay card holder transacting at same Bank had announced in the 2015 Budget. The other two being
channels) and ‘off-us’ (Bank Customer/RuPay card holder Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the
transacting at other Bank Channels) within 90 days prior to Atal Pension Yojana (APY). An accident insurance scheme,
date of accident, including accident date is being included PMSBY offers a one-year accidental death and disability
as eligible transactions under the RuPay Insurance Program cover, which can be renewed annually.
2016-2017. The overdraft facility up to INR 5,000 is available
in only one account per household, preferably the lady of the The cover is for a one-year period. Under PMSBY, the
household. risk coverage available is Rupees two lakhs for accidental
death and permanent total disability, and Rupees one lakh
Reports demonstrate that till date, 35.04 crore Jan Dhan for permanent partial disability. Permanent total disability is
accounts have been opened for direct benefit transfer to defined as total and irrecoverable loss of both eyes or loss of
the needy and underprivileged sections. The balance in use of both hands or feet or loss of an eyesight and loss of
beneficiary accounts stands north of Rs. 94,617 crore. Over use of a hand or a foot.

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Permanent partial disability is defined as total and The APY focuses on the unorganised sector who join the
irrecoverable loss of an eyesight or loss of use of a hand National Pension System (NPS) administered by the Pension
or foot. The cover will be in addition to any other insurance Fund Regulatory and Development Authority (PFRDA).
plan the subscriber has. The scheme is not a Mediclaim, Under the APY, the subscribers begin to receive a fixed
i.e., there is no provision for reimbursement of hospitalisation minimum pension at the age of 60 years depending on their
expenses following accident, resulting in death or disability. contributions. Till date, reports have shown this scheme has
more than 10 million subscribers who as promised receive
Estimates show that a total of 13.25 crore people have been a fixed pension amount of anything between INR 1000 and
insured with personal accident cover under this scheme INR 5,000 per month.
at Rupees 12 per year. Thus, more than half of the Indian
population has already benefited from this scheme till date, Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension
ever since the date of its implementation. Scheme announced by the Government of India exclusively
for the senior citizens aged 60 years and above which is
The Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) available from 4th May, 2017 to 31st March, 2020.
is a state-funded, one-year life insurance scheme. The
cover under PMJJBY is for death only and hence benefit Due to the success of the scheme, its duration has been
will accrue only to the nominee. PMJJBY is a pure term extended till March 2020 and the investment limit under the
insurance policy which covers only mortality. Statistical annual budget of 2018-19 for the scheme has been raised to
reports show that till date nearly six crore people have INR 15 lakhs from the earlier ceiling of INR 7.5 lakhs. Further,
enrolled under PMJJBY scheme, and the total number of the Yojana ever since its inception has successfully delivered
claims received till date are nearly 1,02,849. returns at 8% and will be doing so for 10 years from the date
of its inception, i.e. in 2017.
The government announced the introduction of universal
social security schemes for all Indians, especially the poor It is evident that the efforts of the Modi government to reach
and the underprivileged, in the Budget for 2015-16. With that the poor have been largely successful with the success rate
objective, the government launched the Atal Pension Yojana of some of the schemes exceeding expectations and the
(APY), which provides for a defined pension, depending on expectations of the poor and underprivileged sections. The
the contribution, and its period. government has ensured that the efforts of development go

down to the poorest by putting people
in charge of uniform implementation of
everything envisaged, starting from the top
to the bottom.

The main objective of direct benefit
transfer can be safely said to have been
met. All this augurs well for the nation in
the coming years. The author is glad to
know the current government realizes the
importance of all sections working together
to transform India. Empowerment will lead
to a happy workforce which in turn will
lead to overall development of the nation
which will further lead to a happy and
prosperous India.

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A Holistic Manufacturing
Ecosystem For High
Trajectory Growth

Catching the Manufacturing Missed Bus

The industrial sector is made up of manufacturing, mining
& quarrying, and electricity, water supply, and gas sectors.
The industrial sector accounts for around 27.6% of the India
GDP and it employs over 17% of the total workforce in the
country.

Dr. Chetan Bajaj The Gross Value Added (GVA) at basic current prices from
the manufacturing sector in India grew at a CAGR of 4.34
Professor - Marketing, IFIM Business School per cent during FY12 and FY18 as per the estimates of
annual national income published by the Government
“ We are working aggressively towards making of India. During April-September 2018, GVA from
India a Global Manufacturing Hub. We want manufacturing at current prices grew 14.8 per cent year-
the share of manufacturing in our GDP to go on-year to Rs 138.99 trillion (US$ 198.05 billion). Under
up to 25 per cent in the near future”, said the Make in India initiative, the Government of India aims to
Prime Minister Narendra Modi, at the opening of the Make in increase the share of the manufacturing sector to the gross
India Week in 2016. A marquee initiative by the government, domestic product (GDP) to 25 per cent by 2022, from 16 per
Make in India, was launched in September 2014. Its hardly cent, and to create 100 million new jobs by 2022.
much of a surprise, that in a matter of four years, India
is steadily emerging as a global centre for electronics Manufacturing Sector is key driver for the growth of
manufacturing. Economy. The benefits from growth of Manufacturing sector
include

●● Utilization of natural resources like mineral, forest
and agro-based resources. Development of Agro
based industry increases the value of farm produce.

Manufacturing has emerged as one of the high growth ●● Growing industrialization in the country can attain
sectors in India. India is expected to become the fifth largest balanced sectoral development and thereby reduce
manufacturing country in the world by the end of year 2020. over dependence of the economy on the agricultural

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sector. As industries develop People move away from in class manufacturing infrastructure, to facilitate investment,
farming and there-by reduce pressure on land. to foster innovation, enhance skill development and
protect intellectual property. The Idea is to attract Foreign
●● Increasing volume of investment in industries leads Investments and Technology by enabling foreign investors
to enhancement in the rate of capital formation in the to take advantage of huge domestic market and use India’s
country. This leads to increase in GDP and Per capita huge resource base to create a Global manufacturing hub.
income. The country becomes self-reliant and its
exports grow. Make in India concept was extensively marketed, across the
World, with attractive Promotional campaigns. A dynamic
●● Development of industrial sector, particularly the web portal was launched and attractive brochures were
labor intensive Small and Medium scale enterprises released on the 25 sectors. Foreign equity caps, norms and
would create job opportunities for millions of procedures in various sectors were relaxed.
unemployed persons and thereby lessen the burden
of unemployment. Application of manufacturing application was made available
online and the validity of licenses was increased to three
The NDA Government has taken several initiatives years. As per the current policy, 100% Foreign Direct
to promote a healthy environment for the growth of Investment (FDI) is permitted in all 25 sectors, except for
manufacturing sector in the country. Make in India is a Space industry (74%), defense industry (49%) and Media
major initiative of the Modi Government to encourage (26%). Japan and India also announced a US$12 billion
companies to manufacture their products in India. It was “Japan-India Make-in-India Special Finance Facility” fund
launched in September 2014 and covers 25 sectors of the to push investment. In line with the Make in India, individual
economy. Make in India seeks to establish best facilities and states too launched their own local initiatives, such as
Infrastructure to attract foreign companies to invest in India. “Make in Odisha”, Vibrant Gujarat “Happening Haryana” and
“Magnetic Maharashtra”
Projects under Make in India initiatives are granted speedy
approvals. The vision of ‘Make in India’ is to transform India Zero Defect Zero Effect” slogan was coined by Narendra
into a global design and manufacturing hub and build best Modi to capture the essence of the Make in India initiative.

This was to bring advanced processes,
materials and technologies to India and
manufacture Quality Products with zero
defects and no adverse effect on the
Environment. “Make in India Week” multi-
sectoral industrial event was organized in
February 2016. It was attended by 2500+
international and 8000+ domestic, foreign
government delegations from 68 countries
and business teams from 72 countries and
17 Indian states.

Start-up India is another key initiative of
the Modi Government to develop a strong
ecosystem to promote start-ups in the
country. This initiative, is based on the
following three pillars:

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1. Simplification and Handholding. also has launched a phased manufacturing
2. Funding Support and Incentives. program (PMP) aimed at adding more smartphone
3. Industry-Academia Partnership and Incubation. components under the Make in India initiative
thereby giving a push to the domestic
Restrictive Government policies, within this domain, manufacturing of mobile handsets.
pertaining to Licenses, Land Permissions, Foreign
Investment Proposals, and Environmental Clearances are ●● Income tax rate for all companies having a turnover of
liberalized and discarded. up to Rs 250 crore (US$ 38.75 million), was
reduced to 25 per cent.
Standup India initiative was launched by Prime Minister
Narendra Modi to support entrepreneurship among women ●● Export incentives available to labor intensive MSME
and SC & ST communities. sectors by increased by 2 per cent under the
Mid-Term Review of Foreign Trade Policy (2015-20).
Besides, the highly acclaimed initiatives like Make in India,
Start-up India and Stand-up India, some other major ●● The Government of India is in talks with stakeholders
initiatives taken by the Modi Government after 2014, to to further ease foreign direct investment (FDI) in
boost growth of Manufacturing sector include: defense under the automatic route to 51 per cent
from the current 49 per cent, to give a boost to the
●● Finalization of Draft National Policy on Electronics Make in India initiative and to generate employment.
(NPE), released in October 2018, which envisages
creation of a US$ 400 billion electronics ●● The Ministry of Defense, Government of India,
manufacturing industry in the country by 2025. approved the “Strategic Partnership” model which
will enable private companies to tie up with foreign
●● Exemption of 35 parts from basic custom duty, in players for manufacturing submarines, fighter jets,
September 2018, to boost mobile handset helicopters and armored vehicles.
production in the country. The Government of India

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●● The Union Cabinet has approved the Modified Special partnership with CK Birla Group, it is going to build
Incentive Package Scheme (M-SIPS) in which, a car manufacturing plant in Tamil Nadu at the cost of
proposals will be accepted till December 2018 or `7,000 crore ($1.03 billion).
up to an incentive commitment limit of Rs 10,000
crore (US$ 1.5 billion). ●● Boeing announced setting up of a factory to
assemble fighter planes, either the Apache or
The dynamic policies of the Modi Government have Chinook, defense helicopter in India, as well as the
changed the scenario of manufacturing in the Country. Huge manufacture of F/A-18 Super Hornet.
investments have poured in and massive projects have been
launched. The big policy changes in India have also been ●● In May 2018, the Indian Army announced a `50,000
highly appreciated in Global forums crore (US$7.0 billion) ammunition production project
to be implemented in phases over a 10-year period.
The World Bank latest ‘Doing Business Report’(DBR, 2019) Under the project, 11 private firms will manufacture
shows that India has jumped to 77th Position out of 190 and supply ammunition for the Army’s tanks, rockets,
countries in Ease of Doing Business Index, a jump of 23 air defense system, artillery guns, infantry combat
positions against its rank of 100 in 2017, and 130 in 2016. vehicles, grenade launchers and other field weapons
By the end of 2017, India had also risen 32 places in World
Economic Forum’s Global Competitiveness Index and 19 ●● Foxconn committed US$5 billion investment over
notches in the Logistics Performance index. 5 years in research and development and hi-tech
semiconductor manufacturing facility.
After the launch of make in India initiative, India received
investment commitments worth `16.40 lakh crore (US$230 ●● In April 2018, Saudi Arabian Oil giant Aramco signed
billion) and investment inquiries worth `1.5 lakh crore (US$21 an initial deal with a consortium of Indian refiners to
billion), between September 2014 to February 2016. India build a $44 billion refinery and petrochemical project
emerged as the top destination globally in 2015 for Foreign on India’s west coast.
Direct Investment (FDI), surpassing USA and China with
US$60.1 billion FDI. ●● Huawei announced new research and development
(R&D) campus in Bangalore with an investment of
Several large Manufacturing Projects have been announced US $ 170 million and telecom hardware
following the policy Initiatives of the Modi Government, after manufacturing plant in Chennai.
it came to power in 2014. The massive scale and scope of
these Projects can be gauged from following commitments: Modi Government seeks to make Manufacturing sector
the major engine for Economic growth over next 10 years.
●● General Motors announced investment of US$1 As contribution of Agriculture to total GDP declines, the
billion to manufacture automobiles in Maharashtra. share of Industry in GDP will increase. The vision for the
SAIC Motors announce an investment of Rs. 2,000 Manufacturing sector stated in the National Manufacturing
crore in a car manufacturing plant in Gujarat. Policy (NMP) anticipates that manufacturing sector will have
a growth rate of 12-14% in the medium term. Accordingly,
●● In April 2017, Kia, announced that the company the share of Manufacturing sector in GDP will increase to
would invest over $1.1 billion to build a car 25% by 2022. Several incentives are given to small and
manufacturing plant in Anantapur, Andhra Pradesh. medium enterprises, which are labour intensive and generate
This will create Employment for 10,000 people maximum employment under Start-up India and Stand-
up India schemes. Manufacturing sector will generate 100
●● European automobile major PSA announced that in a million new jobs by 2022

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Ensuring 'Sabka Saath,
Sabka Vikas'

qualified as economically weaker if his/her annual income is
below Rupees eight lakhs, the agricultural land ownership is
less than five hectares and home ownership is below 1,000
square feet.

pritam ghosh The year 2014 was a landmark year in the political history
of India. After three decades, India voted a government into
assistant professor of law, ifim law school power through an overwhelming majority. The former Chief
Minister of Gujarat Narendra Modi took over the reins, with
“When 1.25 billion dreams go towards a goal, the resolve of ‘Sabka Saath Sabka Vikas’, and ‘Maximum
there’s nothing that cannot happen. In 2014, Governance, Minimum Government’.
the people of the country did not just stop at
forming a government. They got together for While the ‘Suit boot ki sarkar’ jibe has been a constant by
nation-building and they will keep at it”, said Prime Minister those opposing the government’s development model, the
Narendra Modi during his speech from the Red Fort on the government has silently but in a typically unflinching resolve,
country’s 72nd Independence Day. worked towards the upliftment of the common man and
towards the betterment of all-round development of all classes
While, the issue of reservation and quota for the certain of the society ever since being voted to power in 2014.
sections of the society (based on the age-old caste system
as well as religious and ethnic minorities) has been a The Scheme of Grant in Aid to Voluntary Organisations
defining feature of the Indian democratic system, no other working for Scheduled Castes, for instance, is a timely
government in the history of post-Independent India has ever initiative to involve the voluntary sector and training
tread on the path to focus on the economically backward institutions of repute to improve educational and
or weaker sections of the General Category, through socioeconomic conditions of Scheduled Castes. Through the
reservations. programme, the members of these communities would be
engaged with to upgrade their skills to enable them to take
On January 7, 2019, the Government approved a 10 per up jobs or to encourage self-employment.
cent reservation for economically backward upper castes
in government jobs and education. An individual shall be The government has been early to recognize that children
and youth are the future of the country. An inclusive
approach towards educating and skilling them is at the heart
of a sustainable long term socio-economic development.

Reports by the Ministry of Social Justice indicate that till
date more than 200 NGOs across the country have received

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grants to setup residential primary schools, nursing homes of post matric scholarships to students of the Scheduled
and dispensaries, vocational training centres etc. Caste Category.

The pre-matric Scholarship to the students from the Another scheme, the Free Coaching for SC and Other
Scheduled Caste (SC) students studying in classes IX & X is Backward Classes (OBC) students provides coaching of
a Centrally Sponsored Scheme and implemented through good quality for economically disadvantaged candidates
State Government and Union Territories (UT) administration. to enable them to appear in competitive examinations and
The key objectives of the scheme are: succeed in obtaining an appropriate job in Public/Private
Sector. The scheme is being implemented through reputed
(1) To support parents of SC children for education of coaching institutions/centres run by the:
their wards studying in classes IX and X so that the
incidence of drop-out, especially in the transition (1) Central Government/State Governments/
from the elementary to the secondary stage is UTAdministrations/PSUs/Autonomous Bodies under
minimized Central/State Governments;

(2) To improve participation of SC children in classes IX (2) Universities (both Central and State) including the
and X of the pre-matric stage, so that they perform Deemed Universities and Private Universities
better and have a better chance of progressing to recognized by concerned authority; and
the post-matric stage of education.
(3) Registered private institutions/NGOs.
(3) The Scheme will be available for studies in India only
and will be awarded by the Government of the State/ Reports suggest that for the 2017-18, Rs. 25 crore has
Union Territory to which the applicant belongs i.e. been released to provide free coaching so that the students
where he is domiciled. of the SC/ST/OBC categories could appear for competitive
examinations.
It is noteworthy that the annual report of implementation of
schemes published by the Ministry of Social Justice indicates Ever since 2014, the Modi government has been able to
that for the 2017-18 plan year, Rs 3,347.99 crore of funds allocate and spend a total of Rs. 95000 crores for the overall
have been released by the Central Government for the grant welfare of the Scheduled Caste (SC), Scheduled Tribe (ST)

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and Other Backward Classes (OBC). This includes an In terms of increasing accessibility to public places for all
unprecedented rise of 41% in the budget allocation for OBC sections of the society, the government has converted at
welfare in 2018-19 as compared to the financial year 2017-18. least 50% of all government buildings in the national capitals
and in all the capital cities of states into fully accessible
It is noteworthy that over 3.3 crore students benefited from places for the public, especially for the differently abled.
the same during the two financial years of 2014-15 and Special camps have been organized frequently since the
2015-16, with scholarships worth Rs 7,565 crore. One of the year 2014 for the distributions of Aids and Assistive devices
major changes brought about in the Pre-Matric Scholarship to eight lakh individuals with disabilities.
scheme for OBCs in the current financial year is the raising of
the income eligibility limit to avail the scholarship scheme. The Department of Empowerment of Persons with
Disabilities (DEPwD) has launched Accessible India
Till the previous financial year, the eligibility limit was set Campaign (Sugamya Bharat Abhiyan) as a nation-wide
at Rs 44,500 per annum. which allowed only a miniscule initiative to achieve universal accessibility for Persons with
section of the population to be covered by the scheme. Disabilities (PwDs).
However, the limit has been raised to Rs 2.5 lakhs per
annum. in the current financial year which has meant that An accessible physical environment that benefits everyone,
a larger percentage of the OBC population in India can not just persons with disabilities, is the focus. The
now be covered for the distribution and allocation of the government has stated that measures should be undertaken
scholarships. to eliminate obstacles and barriers to indoor and outdoor
facilities including schools, medical facilities, and workplaces.
It is anticipated that this move shall create a bigger umbrella These would include not only buildings, but also footpaths,
under which a substantial portion of the OBC student curb cuts, and obstacles that block the flow of pedestrian
population in the country shall be reaping the benefits. The traffic.
income eligibility limit has also been raised in the current
financial year from Rupees two lakhs per annum to Rupees Objective 1: Enhancing the proportion
2.5 lakhs per annum for the Pre-Matric Scholarship scheme of accessible government buildings
for the SCs.

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An accessible government building is one, where persons It is worthwhile to mention that audit for accessibility of
with disabilities have no barrier in entering it and using all government buildings and public places for the differently
the facilities therein. This covers the built environment abled has been conducted for a total of 1,662 buildings in 50
– services, steps and ramps, corridors, entry gates, cities and the process is ongoing in another 25 new cities at
emergency exits, parking – as well as indoor and outdoor the moment. In addition, all 34 international and 48 domestic
facilities including lighting, signages, alarm systems and airports in the country have been provided with ramps,
toilets. accessible toilets, lifts with Braille symbols and auditory
signals.
Identifying accessible buildings requires annual accessibility
audits that determine if a building meets agreed upon The Rights of Persons with Disabilities Act, 2016 is a legal
standards. Once a building is deemed fully accessible, an milestone in the history of India. Under the RPWD Act,
annual audit is not necessary, but should be required for any 2016, the list has been expanded from 7 to 21 conditions
proposed changes to the structure or systems contained and it now also includes cerebral palsy, dwarfism, muscular
therein. A full audit can then be done on a less frequent dystrophy, acid attack victims, hard of hearing, speech
basis. and language disability, specific learning disabilities, autism
spectrum disorders, chronic neurological disorders such as
Standards of accessibility should be as consistent as multiple sclerosis and Parkinson’s disease, blood disorders
possible with international standards, such as those of such as haemophilia, thalassemia, and sickle cell anaemia,
the ISO, considering the local context. About the built and multiple disabilities.
environment, ISO 21542:2011, Building Construction
– Accessibility and Usability of the Built Environment, These disabilities have now been included in the 2016
delineates a set of requirements and recommendations legislation for the first time and were not there in the Disability
concerning construction, assembly, components and fittings. Act, 1995, enacted during the reign of the then government.
The nomenclature mental retardation is replaced by
Speedy and effective implementation intellectual disability which is defined as “a condition
of the campaign characterized by significant limitation both in intellectual
functioning (reasoning, learning, problem-solving) and in
adaptive behaviour which covers a range of every day social
and practical skills including specific learning disabilities and
autism spectrum disorders.”

The RPWD Act, 2016 provides that “the appropriate
Government shall ensure that the PWD enjoy the right to
equality, life with dignity, and respect for his or her own
integrity equally with others.”

The Government has taken steps to utilize the capacity
of the PWD by providing appropriate environment. It is
also stipulated in the section 3 that no PWD shall be
discriminated on the ground of disability, unless it is shown
that the impugned act or omission is a proportionate means
of achieving a legitimate aim and no person shall be deprived
of his personal liberty only on the ground of disability.

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Living in the community for PWD is to be ensured and steps of a limited guardian to take legally binding decisions on his
are to be taken by the Government to ensure reasonable behalf in consultation with such person, in such manner, as
accommodation for them. Special measures are to be taken may be prescribed by the State Government.
to ensure women and children with disabilities enjoy rights
equally with others. Measures are to be taken to protect It is also provided that the District Court or the designated
the PWD from being subjected to cruelty, inhuman, and authority, as the case may be, may grant total support to
degrading treatments and from all forms of abuse, violence, the person with disability requiring such support or where
and exploitation. the limited guardianship is to be granted repeatedly. In these
cases, the decision regarding the support to be provided
Police officers, who receive a complaint or otherwise shall be reviewed by the Court or the designated authority,
come to know of violence, abuse, or exploitation, shall as the case may be, to determine the nature and manner of
inform the aggrieved PWD of his right to approach the support to be provided.
Executive Magistrate. The police officer shall also inform
about particulars of nearest organization working for the Limited guardianship has been explained to mean a system
rehabilitation of the PWD, right to free legal aid, and right to of joint decision which operates on mutual understanding
file complaint under the provisions of this Act or any other and trust between the guardian and the person with
law dealing with such offence. disability, which shall be limited to a specific period and
for specific decision and situation and shall operate in
Equal protection and safety in situations of risk, armed accordance to the will of the person with disability. It is also
conflict, humanitarian emergencies, and natural disasters are provided that on and from commencement of the Act, every
to be provided to PWD. Children with disability are not to be guardian appointed under any other law for time being in
separated from parents except on the order of a competent force shall be deemed to function as a limited guardian.
court and information about reproductive rights and family
planning to the PWD is to be ensured. Accessibility in voting The Act provides for the access to inclusive education,
and access to justice without discrimination to the PWD are vocational training, and self-employment of disabled persons
to be ensured. Public documents are to be made available in without discrimination and buildings, campuses, and various
accessible formats.

It is to be ensured that all PWD enjoy legal capacity on an The Act provides for the access
equal basis with others in all aspects of life and has the right to inclusive education, vocational
to equal recognition everywhere as any other person before
the law and have the right, equally with others, to own and training, and self-employment
inherit movable and immovable property as well as control of disabled persons without
their financial affairs (Sec 13). discrimination and buildings,

However, the PWD would have the right to alter, modify, campuses, and various facilities
or dismantle the support system and in case of conflict are to be made accessible to the
of interest, the supporting person would withdraw from PWD and their special needs are to
providing the support [sec 13(4&5)]. It has been provided
in the section 14 of the Act that a District Court or any be addressed
designated authority, as notified by the State Government,
finds that a person with disability, who had been provided
adequate and appropriate support but is unable to take
legally binding decisions, may be provided further support

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facilities are to be made accessible to the PWD and their Statistical records show that ever since the enactment of the
special needs are to be addressed. Disability Act 2016, reservations for the “Divyang” population
of the country in government jobs has been raised from
Necessary schemes and programs to safeguard and three per cent to four per cent. Further, it is noteworthy that
promote the PWD for living in the community are to be more than 6 lakh people have benefited from 5,790 camps
launched by the Government. Appropriate healthcare organized across the country since May 2014.
measures, insurance schemes, and rehabilitation programs
for the PWD are also to be undertaken by the Government. On 1st November, 2014 a scholarship scheme was
All Government institutions of higher education and those introduced by the Modi government to provide financial
getting aid from the Government are required to reserve assistance to Divyang students to pursue technical
at least five per cent of seats for persons with benchmark education. As a part of this scheme, every year there are
disabilities. Also, four per cent reservation for persons 1,000 scholarships available to such students within which
with benchmark disabilities is to be provided in posts of Rs. 30,000 is provided towards tuition fee reimbursement
all Government establishments with differential quotas for and Rs. 20,000 as contingency allowance.
different forms of disabilities. Incentives to employer in private
sector are to be given who provide five per cent reservation Also, the Indian Sign Language Research and Training
for persons with benchmark disability. Centre (ISLTRC) was established on 28th September, 2015,
with the objective of providing Sign Language Training
Special employment exchanges for the PWD are to be services to the section of the Indian population that is visually
set up. Standards of accessibility in physical environment, and auditorily impaired.
different modes of transports, public building and areas are
to be laid down which are to be observed mandatorily and a Major amendments were approved on 1st August, 2018, by
5-year time limit is provided to make existing public building the Modi government to the original SC/ST Atrocities Act
accessible. of 1989 in order to eradicate the victimization of the SC/
ST/OBC communities and being subjected to physical and
Access to information and communication technology is verbal atrocities by the forward classes.
to be ensured. The Central and State Advisory Boards on
disability are to be constituted to perform various functions The amendment bill of 2018 proposes the establishment of
assigned under the Act. District level Committees are special fast track courts for the speedy disposal of offences
also to be constituted by the State Government. Chief committed against the backward classes by targeting
Commissioner and two Commissioners for PWD are to be them in public or private. Special rights for protection to
appointed by the Central Government at the central level for victims and witnesses has also been proposed and the
the purposes of the Act. corresponding duty has been imposed upon states and
union territories to adopt effective measures for victim and
Similarly, State Commissioners for PWD are to be appointed witness protection.
by the State Governments. National Funds for PWD and
State Funds for PWD are to be constituted at the central and These amendments will ensure that the backward classes
state levels respectively by the appropriate Governments. are no longer victimized and receive speedy justice in case of
Contraventions of the provisions of the Act have been made being targeted by the forward classes and being deprived of
punishable by a fine of an amount up to ten thousand for first their basic human rights.
contravention and fifty thousand extendable up to five lakhs
for subsequent contraventions. Atrocities on PWD have been Prime Minister Narendra Modi, inaugurated the BR
made punishable with imprisonment of 6 months extendable Ambedkar International Centre in New Delhi on 7th
to five years and with a monetary penalty. December, 2017, and said it would be an important place for

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research on social and economic issues. The Dr. Ambedkar This is saving a lot of time, money and resources for the
International Centre for Socio Economic Transformation is common man and is allowing him to concentrate on other
also part of this project for which our Hon’ble Prime Minister important steps within an approval or submission process.
had said on the occasion of its inauguration that this will be Also, this move has sent out an extremely positive message
an important centre for research on social and economic to the Indians as the government wants to indirectly convey
issues. He said the centre would function as a think-tank for that an individual’s own signature is sufficient proof of the
inclusive growth, and related socio-economic matters. authenticity of the documents in his possession and do not
need to be verified by a third person for their genuinity.
The Prime Minister and his government aim to create
awareness about the life and achievements of Dr. Ambedkar Another commendable move made by the current
and his great service to the nation by developing the government is the swoop down on the creation of black
“Panchteerth” which are the places associated with his life money and possession of undisclosed assets and income
and include his birthplace in Mhow, Madhya Pradesh, his within the economic system which had almost led to the
residence during studies in London, Deeksha Bhoomi in creation of a parallel economy within the main economy
Nagpur where he embraced Buddhism, Mahaparinirvan consisting of the financial and capital markets.
Sthal at Alipur in Delhi where he attained Parinirvan and his
memorial at Chaitya Bhoomi in Mumbai. To this effect the enactment of the Black Money Act 2015,
the Voluntary Disclosure of Income Scheme, 2015, and
If one examines the overall performance of the Modi major amendments to the Benami Transactions Act, are
government till date, the constant effort to keep striving for major steps towards flushing out illegal wealth and bringing
a better and shining India becomes evident through the in transparency, economic growth and revenue generation
adoption of innovative means to seek the end. into the Indian monetary system.

One hopes that the people of this country shall do a great Recommendations to bring about such changes had been
service to themselves by voting the Modi government into made in the last four decades by economists such as Prof.
power in the next elections so that the Prime Minister and his Sukhomoy Chakraborty but have been finally implemented
team get five more years to bring about radical changes to by the NDA government 2015 onwards. As a result, the
all systems prevalent in the country thereby making India a latest data on tax filing released by the Finance Ministry of
superpower at par with the western world. the Government of India shows that the number of new ITR
(Income Tax Return) filers grew by over 16 per cent from
Transparency, accountability, initiating hassle-free legal 85.51 lakh new filers for 2016-17 to 99.49 lakh in 2017-18.
processes with the least amount of bureaucratic procedures
has been the focus from day one for the current NDA All this can only mean “Achhe Din” has already arrived and
government. Facilities that had been denied to the people of India is being led towards a new dawn of globalization,
this country for decades together have now reached them. industrialization, transparent and good governance and
efficient law enforcement and administration with a mixture
For instance, till 2014 the process of attestation on of speedy achievement of the greatest good of the greatest
documents used be an extremely tedious process with one number through social welfare legislations, social justice
having to run around from pillar to post to look for a class and high levels of commitment to the people of this nation
I gazetted officer to attest documents. However, all that all of which is coming from our dynamic Prime Minister Mr.
has now changed since the current NDA government has Narendra Modi and his cabinet.
brought in the concept of self-attestation of documents
wherein one can put his own signature on a photocopy of an
original document.

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Projecting India's Soft
Power Through AYUSH

rajarshi-chakraborty
assistant professor, ifim business school

“ Yoga is India’s gift to the world for health, wellness
and peace. It connects us with wellness and
happiness”, said a jubilant Modi, on the sidelines
of the G20 Summit, at Buenos Aires, Argentina.
The United Nations General Assembly (UN GA) in December
2014, adopted a draft resolution declaring June 21 as
International Yoga Day. A record 177 countries co-sponsored
the resolution. As India is set firmly on a path to being a
superpower, it’s not flexing its muscles. It’s is using its soft
power to achieve its aim. Sports and Yoga are two ways it
believes it can get its rightful place.

The importance of sports and fitness in one’s life is The Khelo India programme has been introduced to kindle a
invaluable. Playing sports inculcates team spirit, develops sports culture at the grassroots through a strong framework
strategic & analytical thinking, leadership skills, goal setting for all sports.
and risk taking.
To accomplish this, Khelo India programme has been divided
Sports are an extremely important component for the into 12 verticals to promote and generate interest in sports.
overall development of our nation. The potential needs to be
showcased on a global platform. It’s time we inspired young
talent, gave them top-notch infrastructure and training.

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adoption of an International Day of Yoga.
On December 11, 2014, the General
Assembly approved the proposal to
establish 21 June as “International Day
of Yoga”. In its resolution, the UNGA
recognised that Yoga provides a holistic
approach to health and well-being.

The Ministry of AYUSH organised 1st
International Day of Yoga (IDY) on 21
June, 2015 in New Delhi. A 2-day
international conference on “Yoga for
Holistic Health” was organised on 21st
and 22nd June, 2015 in New Delhi and
millions across the world participated.
Outside India, IDY was celebrated in all
the UN members.

Talented players identified in priority sports will be provided The present NDA government is
annual financial assistance of INR 5 lakh per annum for 8 the first to truly leverage India’s soft
years. (Khelo India) power. Narendra Modi’s government
has emphasised India’s cultural gifts
Many schemes and policies have been introduced. One such to the world, and aimed to strengthen their connections,
is TOPS. The Target Olympic Podium Scheme is a flagship particularly, with the countries of Asia most influenced
program of the Government with the aim to produce Olympic by India in the past. Cultural power is perhaps the most
champions in 2020 and 2024 by identifying athletes and fund influential in this globalised economy. and It must form an
the medal prospects for the Olympics in Paris in 2024 and integral part of a realistic foreign policy.
Los Angeles in 2028.
Narendra Modi’s Yoga initiative, marks a new era, a new
The TOPS-sponsored athletes saw relative success at the India. His government is introducing Yoga training in schools
2016 Rio Olympics and the 2018 Commonwealth Games. at all levels, not limiting Yoga to exercise, but including
In the 2016 Paralympics Games, the TOPS Athletes won 2 pranayama and meditation.
Gold, 1 Silver and 1 Bronze, demonstrating the effectiveness
of the Scheme. The recent success of the Commonwealth Soft power is one of the key components of foreign policy in
Games emphasized the efficacy of the Scheme. Out of the this age of mass communication, global trade and tourism.
70 athletes who won medals at the CWG, 47 of them were This soft power includes culture, sharing the intellectual,
supported under the TOP Scheme. (India, Sports Authority artistic and spiritual culture with other nations.
of india, 2018).
Soft power is part of “cultural diplomacy”, using culture to
create a favourable foreign policy image for a country to
expand its associations and its interests.

While addressing the 69th session of the UN on September When a country loses its cultural identity, other national
27, 2014, Prime Minister Narendra Modi urged for the interests may come under threat. Cultural diplomacy has

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economic, political and social benefits, and aids in the these nodal ministries.
defence and security of a nation.
While the government has allocated Rs. 5,000 crore to
The Prime Minister’s clarion call for a ‘Fit India’, a mass promote Ayurveda and Yoga, it has also stated that an
movement to take the nation forward on the path of fitness expansion of the sector shall lead to creation of jobs and
and wellness. Personalities from different walks of life a better lifestyle among the citizenry. The Secretary for the
including those from the media, films, sports, as well as Ministry of AYUSH, Rajesh Kotecha, as a matter of fact,
individuals from the armed forces, academia, corporate etc. stated that the creation of AYUSH has led to a 15-20%
widely participated in the campaign through social media- growth in patient inflow to the sectors.
powered fitness challenge.
The present government harnessed India’s soft power. The
Invoking India’s ancient esoteric practice of Yoga along with government has emphasised India’s cultural gifts to the
an equally revered, but hardly understood medicinal system, world, and aimed to strengthen diplomatic connections.
Ayurveda, is creating a wider platform to showcase the sub- Cultural power must form an integral part of a realistic foreign
continent’s indigenous wellness practices. The Ministry of policy.
AYUSH (Ayurveda, Yoga, Unani, Siddha and Homeopathy),
the nodal ministry to promote research, awareness and the The Indian Council of Cultural Relations (ICCR) can play
practice of these forms, has led to the larger awareness an important role in this new expression of soft power and
globally and at home, about the multiple benefits of these cultural diplomacy. ICCR has the facilities and associations in
practices. the many countries.

In 2017, the government inaugurated the All India Institute It is imperative that India expands its soft power and
for Ayurveda, an apex institute that propagates, practices civilisational strength, both for national unity and to gain
and spearheads the medicinal practice across the country. A its rightful place in the world. It requires a new generation
host of ministries including railways, defence and labour have of diplomats with a worldview in harmony with India’s
agreed to collaborate with the Ministry of AYUSH to set-up civilizational values. (Frawley, India’s soft power and
special wings within the allopathic hospitals operated by diplomacy: Role of Yoga and Dharmic traditions, 2018)

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Boosting MSMEs Sector
Through High

Powered Reforms

Ensuring Sustenance of Growth Drivers

While demonetization was a masterstroke in flushing out
black money in the system, the MSME and the unorganized
sectors of the economy, owing to the bottleneck to access
financial infrastructure facilities, faced a minor hiccup
(although the long-term prospects remained bright). The
GST, again a big-bang structural reform by the government,
created short-term blip for the MSME sector.

Dr. Sangita Dutta Gupta The market dynamics weren’t too much in favour either, as
the IL&FS fiasco, unfolded a shroud of fear among NBFCs
Associate Professor, economics & entrepreneurship, who were unwilling to lend to any institution, more so to the
IFIM Business School MSMEs. A loan sanction of up to Rupees one crore in just 59
minutes, de-bottlenecking heavy-handed regulation through
“The Union Government has accorded high priority transparent inspection, single window quick clearance and
to the MSME sector in recent years. This outreach formation of clusters are among the salient points of the
and support programme, which will run for the 12-point action plan to rejuvenate the MSME sector.
next 100 days, covering the entire country, is
expected to provide even greater synergy to the efforts being There is no doubt that MSMEs contribute in a big way to
made for this sector”, tweeted Prime Minister Narendra Modi the economy. Today, India is one of the fastest growing
on November 2, 2018, post the launch of a mega initiative major economies in the world, that has the potential to be
for the Micro, Small and Medium Scale Industries (MSMEs). a defining superpower in the decades to come. However,
the country’s industrial development is quite akin to the kind
The MSME Support and Outreach Programme, launched of roadmap that most colonized nations had followed post
by the government to boost the sector and improve credit political sovereignty. The genesis of the country’s modern
facilities for the entrepreneurs. The 100-day 100-district plan industrial history suggests that the charkha, the cottage
was the perfect platform to launch the initiative for a sector industry and the small scale trader have been the backbone
that employs the most number of people after agriculture. of the economy.

Post the advent of liberalization policies in 1990, India

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witnessed a surge in economic activity, that transformed and services sectors of the economy have panned out in
trade, commerce and industry structurally, forever. The role India, MSMEs are also a major contributor to employment
of the mega-PSUs diminished slowly, although not marginal, generation. The development of clusters around large
by any extent. The rise of a new breed of entrepreneurs and corporations and manufacturing facilities has led to the
foray by foreign multi-national companies changed the face development of a hub-&-spoke model. Although agility and
of the Indian industry forever. entrepreneurship are a defining trait of the MSME segment,
the Indian MSME sector is not as evolved in terms of its
India stands in the third position in the world when compared innovation quotient. However, capital intensive innovation is
on the basis of “Purchasing Power Parity” (PPP), second only replaced by frugal ‘jugaad’.
to the United States and China. There has been significant
growth in per capita gross domestic product (GDP) of India. Being one of the youngest nations in the world provides
India a tremendous edge in terms availability of labour. This
This increase in the GDP per capita in PPP can be attributed demographic dividend to play out, however, needs a host of
towards the strengthening of Indian economy. The GDP of factors The percentage of working population (between 15%
India has seen significant growth in the recent years and it no and 64%) is expected to be two-third of the total population
longer represents an under-developing country. The GDP of by 2025. By 2030, India will be the youngest nation. So the
India is depicted in Figure 1 below. sector which generates employment becomes extremely
important for the growth of the economy.
Figure 1: GDP of India
MSMEs complement large industries by acting as ancillary
MSMEs are the engine of the Indian economy. The service units. They play an important role in the development of the
sector MSME contributes more than manufacturing sector industrial sector. As it can be seen from the table below that
MSME in India. Owing to the legacy of India’s industrial share of MSME in GDP is close to 30%.
evolution as well as the manner in which the manufacturing

GDP OF INDIA (In Crores)

3500000
3000000
2500000
2000000
1500000
1000000

500000
0
Source: Bloomberg

Q2 2011
Q3 2011
Q4 2011
Q1 2012
Q2 2012
Q3 2012
Q2 2012
Q1 2013
Q2 2013
Q3 2013
Q4 2013
Q1 2014
Q2 2014
Q3 2014
Q4 2014
Q1 2015
Q2 2015
Q3 2015
Q4 2015
Q1 2016
Q2 2016
Q3 2016
Q4 2016
Q1 2017

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Table 1: MSME sector’s contribution to Indian Economy Table 2: Distribution of Enterprises (Ownership) in rural and
urban areas
Year MSME Growth Total Share of Share of Sector Male Female All
MSME in MSME in Rural 77.76 22.24 100
GVA (%) GVA GVA(%) GDP(%) Urban 81.58 18.42 100
All 79.63 20.37 100

Source: MSME Annual Report 2017-18
2011-12 2583263 810946 31.86 29.57
The NDA government is adopting policies that are aimed
2012-13 2977623 15.27 920292 32.36 29.94 at accelerating the MSME sector. The MSME Support and
Outreach Programme has the following salient features to
2013-14 3343009 12.27 10363153 32.26 29.76 empower and facilitate a conducive environment for the
MSME entrepreneur:
2014-15 3658196 9.43 11481794 31.86 29.39
●● Government will sanction loan up to 1 crore through
2015-16 3936788 7.62 12458642 31.60 28.77 online portal

Source: Central Statistics Office(CSO), Ministry of Statistics ●● All GST registered MSMEs will get interest subvention
and Programme Implementation of 2% or fresh or incremental loans

The MSME sector has been instrumental in generating
employment for women especially in the rural sector. Female
ownership is more in case of micro-enterprises compared to
small and medium enterprises. Distribution of enterprises in
rural and urban areas along with ownership is shown in the
table below:

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●● All companies with turnover of more than 500 crores assistance.
will be on TReDS platforms
b) Revamped Scheme of Fund for Regeneration of
●● All PSUs will have to procure 25% from MSME in Traditional Industries(SFURTI)-The main objective is
place of 20% of their purchase to ensure long term sustainability of traditional
industries.
●● 3% to be reserved for women entrepreneurs out of
25% purchase from MSMEs c) Coir Vikas Yojana-The main objective is modernization
of coir industry, promoting export as well as
●● CPSUs to procure from GeM Portal domestic market and also ensuring skill
development and welfare of artisans and coir
●● Government will spend 6000 crores to establish workers.
1000 technology centres
d) Coir Technology Upgradation Scheme: The objective
●● Government will set up pharma clusters is to give assistance to the entrepreneurs to procure
modern plant and machinery.
●● Annual filing of returns under 8 labour laws and
10 union regulations e) Science and Technology Scheme for Coir: The
objective is that outcome of research should be
●● Computerised random allotment will decide about applied at the field level
the establishment to be visited by the inspector
f) Skill Upgradation and Mahila Coir Yojana: It provides
●● Single consent under water and air pollution laws self-employment opportunities to rural women.

●● Entrepreneurs are exempted from approaching court g) Export Market Promotion: The objective is to improve
for minor violations under Companies Act export performance of the sector.

The government has recently doubled annual turnover h) Domestic Market Promotion: The objective is to
exemption limit for the composition scheme. The GST popularise coir in the domestic product
council has doubled the GST exemption limit to Rs. 20 lakhs
from Rs. 10 lakhs and for North Eastern states to Rs. 40 2) Technology Upgradation and Quality Certification:
lakhs from Rs. 20 lakhs. This is a major boost to the MSME There are many schemes under this programme
sector. Apart from these, some of the other schemes have which are discussed in details below.
been started by the government are as follows:
a) Financial Support to MSMEs in ZED Certification
1) Development of Khadi, Village and Coir: Scheme: Under this scheme, Zero defect and Zero
Effect practice is encouraged. So, Financial
There are many schemes under this programme to develop support is given to ensure better quality and
the sector. These schemes are discussed below. reduction in wastages.

a) Market Promotion and Development Scheme b) A Scheme for promoting Innovation, Rural Industry
(MPDA)-This scheme has been launched by merging and Entrepreneurship (ASPIRE): The main objective
different schemes. It includes publicity, marketing, is to reduce unemployment by creating more jobs.
marketing promotion and marketing development The other objective is to promote entrepreneurship

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culture in India and promoting development at manufacturing techniques to ensure competitiveness
Bottom of Pyramid (BoP) and encourage innovation of the firms.
to strengthen competitiveness of MSMEs.
g) Design Clinic for Design Expertise to MSMEs:
c) Credit Linked Subsidy for Technology Upgradation: T he objective is to increase competitiveness through
It provides 15% subsidy if there is additional design thinking.
investment up to Rs 1 Crore for upgradation of
technology. h) Technology ad Quality Upgradation support to
MSMEs: The objective of the scheme is to
d) ISO 9001/14000 Certification Reimbursement: encourage use of energy efficient technologies
This scheme reimburses charges incurred for (EET) in manufacturing units to reduce the cost of
acquiring the certificates. production

e) Marketing Support/ Assistance to MSMEs i) Entrepreneurial and Managerial Development of
(BAR CODE): This scheme reimburses charges for SMEs through Incubators: The objective is to
acquiring Bar Code by MSMEs to encourage them nurture innovative business plans which have the
to use Bar Codes. capacity to commercialize in one year.

f) Lean manufacturing Competitiveness for MSMEs: j) Adoption of QMS and QTT: The scheme
The objective is to encourage application of lean encourages MSMEs to adopt Quality

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Management Standards (QMS) and Quality billion, of which 906 million will be of working age (between
Technology Tools( QTT). the age of 15 and 64 years). By 2030, India will be the
youngest nation with two-third of the population forming
k) Building Awareness on Intellectual Property Rights the working-age population. Creating jobs for them will be
(IPR): The objective to create awareness about IPR extremely important.
and MSME sector can protect their own innovations
and ideas. Only 10% of the graduates and 25% of the engineers
and MBAs are employable now (FICCI-EY Report, 2015).
3) Market Promotion Schemes: There are many sun Employability is a major problem. Hence, creating jobs for
schemes under this scheme which are discussed young and aspiring population will be a challenge for the
below: government of India.

a) International Cooperation Scheme: The scheme covers To address these head-up the government has announced
visit and participation of MSME delegates to other Skill India campaign on 15th July 2015 to train 40 crores
countries in Trade Fairs or International exhibitions. people in different skills by 2022. MSME sector which is
It also includes holding of International conferences, the largest generator of employment can play an important
summits and workshops. role in rural as well as urban sector. The government has
come up with effective policies to develop the sector. These
b) Marketing Assistance Scheme: The scheme provides superlative initiatives of the government are having a positive
assistance for organizing or co-sponsoring of impact on the MSME sector. The MSME sector will become
exhibitions abroad. It is also involved in buyer-seller more vibrant under the NDA government and continue to
meet and conducting promotional activities. play an important role in the future.

c) Procurement and Marketing Support Scheme: It References
encourages MSMEs to develop domestic markets, 1. State-focused roadmap to ‘India’s Vision 2030’ (FICCI
to facilitate market linkages and to be aware about Higher Education Summit Report).
trade fairs. 2. Sustainable Development Goals: Agenda 2030 – India
2017 (A Civil Society Report).
4) Entrepreneurship and Skill Development Programme 3. PwC Report ‘The world in 2050: Will the shift in
(ESDP) : This scheme tries to encourage youth to set economic power continue?’
up their own enterprise. 4. Indian workplace of 2022: Are organisations ready for the
future?
5) Assistance to training Institutions ( ASI): Under 5. MSME Annual Report 2017-18
this scheme, assistance is provided to National Level
training institutions like KVIC, NIMSME by providing Data Sources:
them with capital to develop their infrastructure. Bloomberg Database
www.data.gov.in
6) Infrastructure Development Programme: Under this www.data.worldbank.org
programme, there is Micro and small enterprise
cluster development scheme ( MSE-CDP). The
objective is to enhance competitiveness and
productivity of MSME sector.

By 2020, the population of India is expected to be 1.35

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Services Sector in India:
A Story of Dynamic Growth

Balanced Services Sector Growth

India’s ranking improved from 14th in 2006 to 7th in 2016,
from among the 15 largest economies.

Dr. Chetan Bajaj & Dr. Rema Gopalan As per the First Advance estimates of national income
2017-18, services sector growth (GVA at constant (2011-
12) basic prices) is expected to be 8.3% during 2017-18,
higher than the 7.7% in 2016-17. The growth in trade,
hospitality, transport, communication and services related to
broadcasting is expected to be 8.7% in 2017-18 compared
to 7.8% in 2016-17 and growth in the ‘financial, real estate
and professional services’ is likely to be 7.3% in 2017-18,
from 5.7% in 2016- 17.

Over the last two decades, India stood out due to ‘Public administration, defence and other services’ registered
the dynamism of the services sector. The services a growth of 11.3% in 2016-17 as against 6.9% in 2015-
sector has been the vital cog for an accelerated 16, owing to higher payments due to the Seventh Pay
growth. The Economic Survey reports reveal Commission. This growth is expected to decelerate to 9.3%
the sector has been led by the predominantly high-end, in 2017-18, on a high base of 2016-17 (Table 1).
knowledge-intensive services exports through well-trained
manpower. Its growth has been better than other sectors. Note: Shares are in current prices and growth in constant
From 1950-51 to 1999- 2000, the economy experienced 2011-12 prices; @ Provisional Estimates for 2016-17; #
a change in its structure with a shift away from agriculture First Advance estimates, * Also includes transport, storage,
towards manufacturing and services. communication and services related to broadcasting; ^Also
includes Real estate, ownership of dwelling and professional
The services sector, with 55.2% in India’s gross value-add services.
continued to be the key driver contributing almost 72.5%
of growth in 2017-18. While this sector is expected to grow As per the latest WTO data for first half of 2017, services
8.3% in 2017-18, the growth in services exports and net export growth was 4.3% (average of Q1 and Q2) and robust
services were robust at 16.2% and 14.6% respectively in H1 at 9.9% for India.
of 2017-18. As per the UN National Accounts Statistics data,
India remained the eighth-largest exporter of commercial

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Table 1: Share and Growth of India’s Services Sector (GVA at basic prices)

Share (Per cent) Growth (%)

2015-16 2015-16 2016-17@ 2017-18#

Total Services 52.9 9.7 7.7 8.3

Trade, repair, hotels and restaurants 11.4 11.2 7.8* 8.7*

Trade & repair services 10.4 10.9 — —

Hotels & restaurants 1.0 14.4 — —

Transport, storage, communication & 7.0 9.3 — —
services related to broadcasting

Railways 0.8 7.0 — —

Road transport 3.2 6.7 — —

Air transport 0.2 16.8 — —

Financial services 5.8 6.8 5.7^ 7.3^

Real estate, ownership of dwelling & 15.3 12.5 — —
professional services

Public Administration and defence & Others 13.4 6.9 11.3 9.4

Construction 8.1 5.0 1.7 3.6

Total Services (including Construction) 61.0 9.1 6.9 7.7

TOTAL GVA at basic prices 100.0 7.9 6.6 6.1

GDP Market Prices Constant Prices) Y-o-Y 8.0 7.1 6.5

Source: Computed from CSO data.

services in 2016 (WTO, 2017) with a share of 3.4% which is Earnings (FEEs) at 8.8% to USD 22.9 billion in 2016. FTAs
double India’s merchandise exports at 1.7%. Moreover, the during 2017 was 10.2 million, growing 15.6%, while FEEs
ratio of services exports to merchandise exports increased from tourism was USD 27.7 billion, growing 20.8% over
from 35.8% in 2000-01 to 58.2% in 2016-17. While India’s 2016. Domestic tourists grew 12.7% to 1,614 million in 2016
services exports registered a CAGR of 8.3% from 2006- from 1,432 million in 2015. Tamil Nadu, UP, AP, MP and
07 to 2016-17, in 2015-16 it contracted (-)2.4%. Services Karnataka were the Top 5 Destinations in 2016.
sector export growth was 5.7% in 2016-17. Services exports
saw robust growth of 16.2% in April-September 2017-18. Various initiatives have been taken to promote tourism,
(Table 3). including e-Visa facility under three categories of Tourist,
Medical and Business for citizens of 163 countries; launch
Major Services Sector-wise performance and some recent of Global Media Campaign for 2017-18 across TV Channels;
government policies to boost growth: launch of ‘The Heritage Trails’ to promote World Heritage
Sites; launch of International Media Campaign on various
Tourism TV channels; Celebration of ‘Paryatan Parv’ having three
components -- Dekho Apna Desh’ for Indians, ‘Tourism
India’s Tourism sector is thriving, with Foreign Tourist Arrivals for All’ with onsite events across states, and ‘Tourism &
(FTAs) growing 9.7% to 8.8 million and Foreign Exchange Governance’ with interactive sessions and workshops with

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IMPACT INDIA 2019 - Produced by IFIMB School | Supplement with Dalal Street Investment Journal

towns; setting up a separate Northeast BPO promotion
Scheme with 5,000 seats; preparing the draft Open Data
Protection Policy law besides long-term initiatives like Digital
India, Make in India, Smart Cities, e-Governance, Skill India,
drive towards a cashless economy and efforts to kindle
innovations.

Real Estate

The Real Estate sector secured FDI of USD 257 mn in H1
2017, double of 2016. Some recent reforms and policies in
Real Estate Sector include the Pradhan Mantri Awas Yojana
(PMAY) with the government sanctioning over 3.1 million
houses in the affordable housing segment in urban regions
till November 2017.

stakeholders. FTAs on e-Tourist Visa grew 143% to 1.08 Of this, foundation stones have been laid for about 1.6
million in 2016, and further grew 57.2% to 1.7 million during million houses and about 0.4 million houses have been built.
2017. PPP policy for affordable housing was to give an impetus to
the ‘Housing For All by 2022’ mission. Credit-Linked Subsidy
IT-BPM Scheme (CLSS) under PMAY was extended to the Middle
Income Group (MIG) which was included in the scheme from
India’s IT – Business Process Management (IT-BPM) industry 1st January 2017. With the enactment of the Real Estate
grew 8.1% in 2016-17 to USD 139.9 billion (excluding (Regulation & Development) Act, 2016, it is anticipated that
e-commerce and hardware) from USD 129.4 billion in 2015- accountability would lead to higher growth across the value
16, as per Nasscom data. IT-BPM exports grew 7.6% to chain while disclosures and registrations would ensure
USD 116.1 billion during the period. E-commerce market is transparency.
estimated at USD 33 billion, with a 19/1% growth
in 2016-17. R&D

To boost the sector, many initiatives have been taken, The professional Scientific & Technical activities which
including establishing a BPO Promotion and Common include R&D services grew 17.5% and 41.1% in 2014-
Services Centres to help in digital inclusion and equitable 15 and 2015-16 respectively. India-based R&D services
growth and provide employment to 145,000, mostly in small companies, which account for almost 22% of the global
market, grew 12.7%. However, India’s gross expenditure on
R&D has been around 1% of GDP. India ranks 60th of 127
on the Global Innovation

Index (GII) 2017, improving from
66th rank in 2016.

Buoyed by the government’s support through Schemes of
different Ministries/Departments, the R&D sector in India is
set to witness robust growth in the coming years. According

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