Narendra Modi government has replaced 65-year old Planning Commission (Yojana Aayog) with a new institution named NITI Aayog. NITI stands for National Institution for Transforming India. To bring in a lasting transformation, radical change in the process of planning and implementation of developmental work is required. Plans should be formulated at local bodies and village level on felt-need based approach.
According to the latest survey report of the National Sample Survey Organisation (NSSO), around a third of rural households and one-fourth of urban ones in India are indebted. Strikingly, the indebtedness spiked between 2002 and 2012 - where the average amount as loan for each family jumped seven times in cities and over four times in rural areas.
In its guidelines for licensing of payments banks, the Reserve Bank of India (RBI) said the move is intended to "further financial inclusion", which is among the top priorities of Narendra Modi government. The government has set a target to open 100 million new accounts under Pradhan Mantri Jan Dhan Yojana by 26th January 2015. The scheme was launched on 28th August 2014.
Narendra Modi government has set an ambitious target to improve India's ranking in ease of doing business to among the top 50 in the next two years. The goal looks very difficult and ambitious because India is ranked at 142 among 189 countries in the latest World Bank's ease of doing business index. In fact, India's ranking has taken a hit in the recent years. It slipped by 11 spot in the past two years.
No one doubts that central bankers are the most conservative lot. Reserve Bank of India under Raghuram Rajan has gone a step ahead in being so much extra-cautious that it keeps doubting everything under the sun to delay the much-needed rate cut.
One of the top agendas of Narendra Modi government is to build 100 smart cities. This will be the biggest city-building exercise in the Indian history. The government has already set the ball rolling, making budgetary provision of Rs 7,060 crore for the project in the current financial year.
The new government has started an ambitious financial inclusion plan that aims to bring every household under the banking net by 26th January 2015. Financial inclusion has been a buzzword for quite some time.
The current round of economic slowdown in India can be attributed more to domestic factors rather than the global economic order, which is rebounding. Manufacturing has been the primary dampening factor. Which is why, the "Make in India" campaign is timely and needs to be implemented on a war-footing, points out Raj Kumar Ray