We had a look at the Narendra Modi government performance over the last 1 year. While meeting sky high expectations following the election results was always a tall task. The new government is a significant improvement and would rate their first year a 8/10.
Fiscal reforms (9/10) – Subsidy has been cut by hiking petrol/diesel price, implementing Direct Benefit Transfer and avoiding populist dole outs. GST hill could also get approved by July and would broaden the tax base.
Business (7/10) – no more crony capitalism, most of the approvals have moved online and they have brought in an auction system for allocation. However, no amendment done on Land acquisition makes it tough to start anything new.
Social (7/10) Government’s push to open accounts has led to a good start, already 150mn accounts have been opened under the Jan Dhan Yojna. These accounts are used for Direct Benefit Transfer. To achieve maximum participation, the government is extending important benefits linked to these accounts— such as free life and accident insurance coverage and small loans.
Foreign (9/10) – big achievements have been further thawing of relations with the US, China and focus on the South East Asian region. PM’s hectic foreign travel is bearing results on this front.
Other Reforms (5/10) – Delay in formation of Anti Corruption Body the Jan Lokpal Body, Controversy in Appointment of Supreme Court Judges, Diluting the RTI & Whistleblower Acts are some of the key issues which the Modi Govt must have a re-look at.
We remain positive on our view of the Indian economy.