Narendra Modi: Saving 'Sultanate' in uncertain times

In another 70 days, Narendra Modi will seek a fresh mandate. Unlike 2013-14, he wouldn't be swimming with anti-Congress tide. That he has kept the people immensely busy with his talks in recent past may make electorate unwilling to look at Congress years before casting votes. And, so, the BJP appears in full grip of doubts at crucial times. 

THE Narendra Modi government would be signing off the final financial year 2018-19 with a total allocation of Rs 61,084 crores for rural employment flagship programme Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The inaugural financial year of the Modi government had seen an allocation of Rs 32,977 crores. 

Modi's inaugural speech in Lok Sabha in 2014 had seemingly set the agenda of the government that it wouldn't be like the Congress led UPA which even after 70 years of India's Independence had nothing but to make people dig soil for livelihoods in a veiled mocking of MGNREGS. 

Financial allocation for MGNREGS in the last financial year of the UPA government was Rs 33,000 crores. Indeed, wage payouts under MGNREGS were marred with long delays, which are no more the norms in the Modi government on account of the expansion of Jan Dhan coverage (Banking coverage and direct benefit transfer). 

Modi had laid siege to "Delhi Sultanate" from Ahmedabad with contrasting governance template. Not digging soil, but the people would be working in big factories, that India would become if not China than at least Gujarat. 

But last quarter allocation of about Rs 6,000 crores to MGNREGS in the revised Budget for 2018-19 taking the full allocation to the flagship scheme to the whopping Rs 61,084 crores demonstrated that labour is moving to rural areas in search for unskilled works on account of shrinking base of skilled work demands in urban areas. 

Reserve Bank of India (RBI) may soon have to cut the policy rates. That inflation continues to ebb isn't something to cheer about. Possible collapse of buying appetite of consumers should worry the policy shenanigans. The December inflation at 2.19 per cent is an 18 months' low. 

The record high MGNREGS allocation and ebbing inflation together tell the story of Indian economy -- panting for breath. Reverse migration of labour is evident. Declining rural income is indeed the story of India in recent years, which in turn gives no incentive for the private investment to chase business expansion.

Indian economy's journey on jobless growth path surely isn't a phenomenon of the times of Modi. That India embarked on jobless growth is a 2008 story. Yet, the journey only gained more steam in Modi's times is well illustrated with official statistics on specter of unemployment in the country, which remains at 27 months' high, besides logging 11 million jobless in 2018.

IN the bylanes of suburbs around Agra, Jatav youth had bolted the electoral stereotype in the 2014 Lok Sabha elections. Much to the anger of their elders, they would openly argue that Behenji (Mayawati, the BSP supremo) wouldn't be becoming Prime Minister, but Modi could create jobs for them. The youth cutting across caste lines believed Modi's words. 

BJP president Amit Shah during a roadshow.

In the 2019 Lok Sabha elections, there would be roughly 250 million youth votes in the age group of 18-25. This segment's immediate worry is employment. They may even be worried of the scale of reverse migration of labour to the rural areas. The urban centres aren't vibrant enough to pull the rural youth with gainful employments. In 2014, such youth had defied the caste pulls. Do they have enough reasons to do same in 2019?  

MODI'S exuberance for his Gujarat model of development had dulled mid-way during the NDA tenure. In the latter half of 2016, Modi was seemingly convinced that his programmes like 'Make in India', "Skill India', etc., were slogans for seminars and Babus to keep them busy in the four walls of New Delhi babudom. He, consequently, had borrowed from Indira Gandhi's electoral book to focus his governance on welfarism. The BJP on purpose, thus, had unveiled the 'Garib kalyan agenda' in 2016. 

After wards, Modi government and the BJP worked in tandem to enlist beneficiaries for a host of welfare schemes. The BJP now has a basket of 22 crore beneficiaries of various welfare schemes to count on for votes in 2019 Lok Sabha elections. That the 2014 mandate wasn't for doles and welfarism is well forgotten within the saffron outfit.   

Indian jobless growth journey by all accounts is for the reason that the private investment remains elusive in the country. The UPA-II failed to revive the private investment. By the time Modi assumed power, Indian private sector was largely in the bad books of the banks. The public sector banks (PSUs), principal carrier of the private investment fuel, are faced with existential crisis. Modi inherited the economic template with missing private investment.

Not an economist and not even blessed with ears for those with expertise, Modi took a flight for flamboyance. Demonetisation of high value currencies along with unleashing of 'tax terrorism' of greater proportions never seen in the history of Indian economy put the engine of India's economy in deep coma. The windfall gains out of low crude oil helped Modi to enhance public investment in infrastructure. But infrastructure development by nature is of long gestation, yielding benefits in the long run. 

Modi may possibly not inspire the youth who seek income opportunities. Those who have gained from welfare schemes aren't sworn either to loyalty of benefactors, for they know that others too would offer doles, which may even be better. Modi has an uphill task in a few weeks to retain his 'Sultanate'.