Minimum Income Guarantee: Plot to handcuff India

A fortnight ahead of first ballots to be cast, Congress president Rahul Gandhi unveiled script to thrust his party at the centerstage of 2019 Lok Sabha elections. With promise of Rs 12,000 a month for five crore poor, 20 per cent of the total poverty stricken households, Gandhi ushered in a Rs 3.60 lakh crore annual package to blunt the march of BJP's mascot Narendra Modi. In the absence of repackaging of subsidy programmes, currently implemented worth  Rs 7 lakh crore, Gandhi is arguably calling for freezing nearly 40 per cent of India's total annual Budget to stay politically relevant. 

ONLY a few days ago, Congress' poll wizardry in unleashing Priyanka Gandhi Vadra wrapped up her Ganga yatra. Ensconced in a customized boat with necessary comforts, she sought to rekindle the old touch of former Prime Minister Indira Gandhi. But crowd hungry television crews struggled to find thronging mass of people during the course of yatra. The political voyage was scratchy and revealing. The verdict within the Congress was evident, that the magical touch of Priyanka Gandhi Vadra is suspect. 

The Opposition grand alliances in parts of the country have shown contempt for the Congress. Akhilesh Yadav and Mayawati, holding the turf of Uttar Pradesh, found no merit in giving lease of life to the Congress in the state where the grand old party is in prolonged vegetative state. Mamata Banerjee (West Bengal) would not yield an inch to the Congress, which is gasping for breath in the state. The Congress remains a baggage on the back of Lalu Prasad's heirs in Bihar. Regional satraps' shunning Congress robbed the main Opposition party of the political depth to claim the status of a challenger of the ruling BJP.

Former chief economic advisor Arvind Subramanian in the 'Economic Survey (2016-17)' floated the idea of universal basic income. Early this year, he followed his idea with a book -- Of Counsel: The challenges of the Modi-Jaitely economy -- publicly lobbied for political acceptance of the idea of universal basic income (UBI). 

Prime Minister Narendra Modi seemingly has no appetite for doles of universal nature. His statecraft is embedded in targeted welfarism. That he shunned the proposal for a universal farmer income support for small and marginal farmers with an annual cost of Rs 75000 crore is a definitive illustration. So, Modi didn't fall for Subramanian's welfarism prescription, which in some forms are being implemented in China, Germany, Canada, United Kingdom and elsewhere. 

THE Congress has principally been slammed by party sympathisers for failure to come out with a narrative to counter Modi. The Congress stayed the course of Modi the person bashing all five years. Sympathisers were rightly alarmed, for knowing well that Modi thrives on negativism. And, consequently, Rahul Gandhi clutched on the Subramanian straw to stay relevant in the elections.

Union Minister Arun Jaitely has said that the NDA government currently is running subsidy programmes worth Rs 7 lakh crores. The annual Budget size of India is about Rs 24 lakh crore. So, Rahul Gandhi's dole could take the subsidy burden to about Rs 11 lakh crore, accounting for almost 40 per cent of the national resources. That the question on how would additional Rs 3.60 lakh crore be mobilized was left unanswered by Gandhi on expected line. That the inflationary impact and the consequent mortal blows to economy weren't worth shedding light by the Congress leadership was also on predictable line. Answers to details would rob the magic of Congress' political art of revisiting 'Garibi Hatao' slogan.

Former vice chairman of NITI Aayog Arvind Panagaria, the only economist worth mentioning in the Modi dispensation for first three years, has reasoned that universal basic income or its any variant would only mean that there would be no incentive for work. All those earning less than Rs 12,000 a month would find incentivized to stay home. The government will pay for their leisure. Agriculture could be denied farm labour. The informal sector's labour cost could go up punitively. That the Congress is brewing a recipe to make India more lazy arguably isn't an outlandish claim.         

One doesn't need to be an economist to know that there's no scope for India to expand its resources by additional Rs 3.60 lakh crore imminently. That makes it incumbent that the resources being earmarked for infrastructure upgrade -- rail, road and port -- would face the axe. The spiral effect of mortally wounding developmental resources would unleash wave of employment for the educated youth. 

INDIA evidently can ill afford the political expediency of a political outfit scrounging for survival tricks. Economists must come out of their closets to unequivocally condemn Congress' recipe for economic disaster.    

           

Lok Sabha elections: Wilting caste factor

BETWEEN cheerleaders and naysayers of Indian airstrike against Pakistani terror bases following Pulwama attack lies firming up of electoral narrative, that nationalism is pushing casteism to the margins. With two surgical strikes in BJP's arsenals, the Opposition undeniably has an uphill task to steer public discourse back to issues affecting the masses. Lok Sabha elections, beginning 40 days from now, is pregnant with possibilities to change the future course of Indian politics.

CASTE swept through the political narrative in 1990s. Social justice juggernaut, with firm grip by 1980s, succumbed to mutation within a decade. Personal aspirations of regional political satraps took higher flights on deepening of caste faultlines. The Congress, indeed, commanded caste rainbows in its belt for long, but with a pan-India appeal. The Congress yielded space in state after state to caste leaders soon after the VP Singh led Janata Dal imploded with the might of inner contradictions. Narendra Modi led BJP delivered first mortal blows to caste satraps in 2014 by riding on aspirational plank. The 2019 Lok Sabha elections promises to show if the caste satraps could clutch on to prevailing arithmetic to live another day in Indian politics.

Demography is fast changing. A vast chunk of Indian youth have few recollections of contemporary political history. Growing expanse of education and access to climb social and economic ladders deny alibi to lament lack of opportunity. Nearly 25 crore of Indian electorate are said to be in age group of 18-25. This chunk rubs shoulders in educational and professional institutions with peers of a cross-section of castes. That may be blunting caste consciousness as well. Besides, shrinking of employment opportunities along with a largescale expansion of access to educational institutions are taking the shine out of charm of reservation bogey. The principal anchor of caste satraps could possibly be adrift on high sea. Additionally, family proprietorship of caste based political outfits also ensured that they remained stuck in the narrative of 1990s. 

THREE decades are too long a period to milk the same plank. Satraps aged and passed batons to their offspring. Original proponents toiled hard amidst the masses. Their offspring grew up in comforts. Satraps were grounded. Offspring show up at stages. Satraps lorded over a large base of peers. Offspring have few.

Messrs Mulayam Singh Yadav, Lalu Prasad, Om Prakash Choutala, Kansi Ram, Ram Vilas Paswan, and others have faded. They indeed passed batons to their respective heirs. Likes of Akhilesh Yadav, Tejaswi Yadav, Ajay Choutala, Mayawati have reaped gains of last gust of legacies of satraps. They stuck to old plank, and refused to evolve with times. Consequently, they were struck with full might of fast changing demographic profile. Paswan, indeed, survived, but only for reason that he he read the changing weather well to clutch onto season's flavor.       

A few other remnants of 1990s, which include the likes of H D Kumaraswamy, stay alive with the power of arithmetic in Indian politics.

Yet, a few of social justice campaigners who branched out of caste satraps remain potent till days by perfecting social welfarism. Navin Patnaik and Nitish Kumar aren't caste satraps, but couched in all pervasive welfarism suited to their turfs abundant with poverty.  

Electoral rise of the BJP and Congress would undeniably shrink spaces for casteist political outfits. Not that the BJP and Congress aren't embedded in caste arithmetic, but they stitch broader equations with national narratives. People haven't also shunned casteism in their preferences. Socially caste is arguably more explicit. But political import of caste identities in electoral politics is evidently wilting with emergence of strong leadership at the national level.

That a few of the chief ministers -- Kamal Nath, Devendra Fadanvis, Manohar Lal Khattar, Raghubar Das, Arvind Kejriwal, Vijay Rupani -- come from electorally insignificant caste groups demonstrate that the fast changing demography and their aspirations are guiding Indian politics to an altogether new territory.    

Emergence of nationalism on the back of popular fatigue and angst against terror strikes in the country could possibly deliver the knock out punch to already weakened caste politics. The youth, particularly, has explicit aversion to status quoism. What passed on as fatalistic sense of resignation is not popularly accepted. That India struck against sources of terrorism is an undercurrent sweeping through the youth yearning for a collective catharsis from mortal blows of status quoism. 

RISK takers, indeed, are rewarded. A Modi led BJP has a rare opportunity to push electoral caste into oblivion. Rahul Gandhi led Congress could also draw a sense of relief, that the lost turf to caste satrap is up for grabs sooner. 

Pulwama: India must redeem

Pulwama attack, snuffing out 40 lives of paramilitary personnel, marks two decades of Pakistan's unequivocal and consistent state policy to bleed India with thousand cuts. India in contrast has been equivocal and willing to fall for guiles of her western neighbor, largely under the influence of Pakistan apologists, who command disproportionate influence over national narrative. And, thus, India sees episodic furore followed by long spell of collective amnesia.

ON Thursday afternoon, India was reminded that the country has a ticking time bomb right at the top of her political map, Jammu and Kashmir. That a local militant in the ranks of Jaish e Mohammed (JeM) slipped away from the watch of hawk's eyes of intelligence sleuths only to blow away a crammed bus carrying the CRPF (Central Reserve Police Force) personnel is a deafening slap on the policy of status quoism.

India is mourning brutal killing of 40 of her brave sons in the line of duty. Hundreds of them have laid down their lives bravely in the recent times. The nation is breathing air of revenge. People are on the street. Politicians will flock to the people. And, consequently, political spectrum concurs to back government for any action against the terror attack.

India has withdrawn the most favoured nation (MFN) status to Pakistan. Certainly not the most favoured nation, Pakistan got the status in 1996 for the World Trade Organisation (WTO) obligation. It was never reciprocated, because Pakistan unlike India has clarity of purpose on her relations with the eastern neighbor. That what war couldn't achieve must be gained from Jihadists pushed into India from across the border is cast in the stone for the masters of the theocratic nation.    

PRIME Minister Narendra Modi wasn't stricken by New Delhi political bug when he checked in the seven, race course road abode of the most powerful person of the country. But he didn't remain immune for long. Soon, he began day-dreaming to emulate his icon and former PM Atal Bihari Vajpayee, and yearned to finish his unfinished business -- to make friends with Pakistan and trade peace for Kashmir valley. 

Recurring Pakistani betrayals didn't affect Vajpayee to cease his yearning for peace with the rogue neighbor. The poet in him made Vajpayee draw the Insaniyat contour for his Kashmir outreach. Both proved mirage. People rejected his dovish outlook. New Delhi's peacenik tribe shoved Vajpayee on to the path of staus quoism. 

Vajpayee hadn't politically groomed Modi. The honours would remain with the BJP patriarch L K Advani. Yet, Modi's decisive mandate left Jammu and Kashmir untouched. The foolhardy experiment to share power with PDP (People's Democratic Front) in J&K proved an avoidable political disaster. Neither development nor the iron muscle flexed might in the northern state. Modi only watched from far distance the unabated alienation of the youth in the valley fast accepting pathological Jihadi indoctrination with great help from the social media. The BJP strategist Ram Madhav arguably blunted the Modi mandate for any decisive impact on J&K.

Worse, Modi allowed his business friends like Sajjan Jindal to further loosen screws on Pakistan after the surgical strike in the wake of 2016 Uri terror attack. The opening of Kartarpur Sahib corridor is another example of the willingness of New Delhi to fall for the guiles of Islamabad and her friends across the border. If the pressure cooker steam had boiled uninterruptedly since 2016 Pakistan would have been squirming for breath. 

Two years would have been enough time to steam-roast Pakistan -- strategically, militarily, and diplomatically. But the course was allowed to become an event, which is now celebrated in a film.

No punitive action would be enough for Pakistan. The world will not shed a drop of tear if Pakistan is struck off the map. The existence of this nation is a crime against humanity. Afghanistan is bleeding for over a decade due to Pakistan. 

Let Pakistan pay for her crimes. Let India perform another surgery on Pakistan. 

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'.