The landmark victory with a historic mandate for Prime Minister Narendra Modi 2.0 has brought stability buffer but it confronts load of expectations, which will be put to test in the next 5 years. Amid this victory and consumption deceleration, protecting brand India, unemployment and agriculture crisis, Modi’s win made this election even more pivotal.

The Benchmark indices roared historic levels on 23rd May 2019, after NDA government won the Lok Sabha elections with majority votes. The indices scaled new record high with Nifty 50 breaching 12,000 mark and BSE Sensex past 40,000 mark for the first time.

India being the fastest growing economy in the world confronts major headwinds with slower demands and economic uncertainty. The elected government set forward an agenda for next 100 days to fix agriculture policies, create employment, complete unfinished reforms and policies related to PSUs and bankruptcy code, and spur the investments in Private equity, Foreign institutional investors (FIIs), and Domestic institutional investors (DIIs).

Here’s a bucket list for the 100-day agenda:

Indian economy:

The NDA government in its poll Manifesto promised to simplify GST rates and turn India into a $5 trillion economy by 2025. Furthermore, they restated their promise to double farmer’s income by 2022. As of January 2019, the GDP is at 6.6%. In Q4FY19 the government estimates the GDP growth to be at 6%.

BJP- led government is likely to simplify the GST by cutting out the two top slabs of 18% and 28%. The Tax slabs could be merged into two from the current four rates.

Further, the NDA government will try to improve the manufacturing sector and initiate Made in India. This step will boost employment generation in the economy.

Health:

The re-elected government may provide additional affordable medicines as well as low-cost blood tests. The Ministry of Health and Family Welfare has proposed to launch pathology labs at more than 5,000 Jan Aushadhi outlets across India.

Students:

The Modi government is committed to improving the quality of higher educational institutions. The government intends to launch a new national education policy that will add 10 Institution of Eminence (IoE) to the existing sanctioned of 20 IoEs. Furthermore, the education policies will fill 5 lakh vacant faculty positions in higher education.

The 5-year vision of Ministry of Human Resource Development covers themes such as quality, governance system, research innovation, and financing higher education.

Rural development:

In the Cabinet meeting that will be held in July 2019, 1.25 lakh km of link routes costing Rs.1.3 lakh crore might get sanctioned under Phase III of the Pradhan Mantri Gram Sadak Yojna (PMGSY).

Smart cities:

The Mission is to expand beyond the existing 100 cities. The total tender’s value might escalate to Rs. 1.5 lakh crores.

Elimination of corruption:

The NDA government is likely to go forward with their clean money campaign and plug leakages. The government will further speed up its efforts to bring back the economic offenders that have fled the country. The government will set up stringent laws to curb black money.

Housing and social welfare:

The affordable housing for the poor scheme – Mantri Awas Yojana (Urban), will be uplifted in the initial 100 days. Furthermore, a list of projects is expected to launch within a month that was adopted by the social sector ministries. The Ministry of Social Justice and Empowerment will extend the better implementation of scholarship programmes.

Union budget:

The final budget will be presented in July, that will consist of :

• Changes in direct tax rates
• Lower rates margin in the corporate tax front
• The exemption should increase to Rs. 5 Lakh, on the personal tax basis
• Stringent law to curb tax evasions
• Additional borrowings for infrastructure development
• Objective – asset creation, employment generation

Agriculture:

The poll manifesto presented by PM Modi to avail the framers by providing them direct income support of Rs.6000 in three instalments in a year.

Investments :

Amid US-China trade war the BJP-led government disclosed policy for FII, FPI, DII that will attract foreign investors benefiting the Indian economy.

Altogether, the 100-day agenda will definitely bring forward the various policies, reforms and administrative. These measures will create an impact on the Indian economy, business, and industries.

MODI 2.0 WHAT LIES AHEAD? (PART 2)