Modi government’s honeymoon period seems to be officially closing in on the end time. And, this time, when the monsoon session begins on July 21, the government would literally be on the fire test because many things have missed the ‘reform’ bus.But that’s one way of looking at things. The government has tried working its way through a couple of policy frameworks, the patience of corporate sector is running out and the government has set off on an extensive agenda for the monsoon session of the Parliament.
Between the winter session’s closing and the beginning of monsoon session, a scandal of sorts broke out with
But, Modi’s team does not look like it would spend too much time trying to cry over the spilt milk. Though the sheen of sweeping victory is wearing off, the government is more than committed to make the session a productive one for its own good.
Prime Minister Modi has set the tone already. Recently he spoke on behalf of entrepreneurs stating traders and people who run businesses take more risks to create wealth and safeguard country’s economy, by way of keeping it healthy. He even compared the businessmen’s work as a riskier one as against that of a soldier’s. This, as expected, broke the internet. But then, a message went home loud and clear. This time around, the government would focus on getting the corporate sector its sops as promised. And why not! A good economy would always mean healthy country.
Government is expected to take a look at bad loans that are bleeding the economy, as a first recuperative measure. They would be considered more like a liability than investment that would make a comeback in long periods. Modi’s agenda does not have a haul long enough to make space for this.
Bad loans, which so far were considered something like restructuring would not be given the leeway, owing to the fact that central bank has already issued its new guidelines. They have to be converted into performing equity stakes, and this would not be an easy step to take. But, looks like the government is ready to make some tough decisions this time around.
Labour laws that underwent a change have given some bad media to the government. The complex labour laws would be amended, even at the cost of government’s popularity, to make things convenient for the companies to make fixed term contracts. This would help curb the dissidence, along with making it profitable for corporate sector to get its share on the promises made prior to the elections. Business establishments have been waiting for this provision because of the volatility of the costs involved should they decide to lay off a large share of workers, if the business weather changes owing to economy.
Reforms are bound to meet with huge opposition since the conditions hadn’t changed this drastically since the last few decades, thanks to the healthy global business index. However, in the changed scenario, workers not only get better benefits and security that the tradeoff of a job security would seem too small a sacrifice to make before them.
The first year in office for Prime Minister Modi has been a soft one, with just sampler reforms or the piece meal ones were met with huge opposition. At the end, it only created a huge furor enough to make noise, but not the news. At the end, it didn’t even add up to much that people could rejoice having elected a government that made things as they wanted them to be.
This year, and the beginning of this session, the expectations are laced with a bit of cynicism. Apart from Yoga display on the occasion of International Yoga Day which got the country into Guinness book of world records, not much happened that could uphold the political prowess of the Prime Minister who could be a crowd-charmer prior to elections.
His silence, and the slow approach has disappointed many and that has been a tangible thing too. PM Modi is aware of the fact that just rhetoric won’t help him stay in the office. Social media is abuzz with criticisms and expectations on the government. This should help the government pick up strong pointers and get to work on meeting the expectations of corporate sector and middle class which voted Modi and his men to power.
An expenditure on political capital may well be a good idea to make now.
(Image: Reuters)