Right-wing Leftist Modi ....... Power & Politics/ The Sunday Standard/December 14, 2014

Right-wing Leftist Modi Set to Make Marx, Markets Irrelevant in Creating New India

Since India Inc seems to be turning into a vociferous foe of PM Narendra Modi, he doesn’t need friends and followers anymore. The masses will rally behind him to fight avaricious tycoons and their loquacious megaphones. For the past few weeks, a whispering campaign has been launched against the Modi government for its supposed failure to deliver on promises. In South Mumbai and Lutyens’ Delhi, the me-and-myself types are gathering in well-appointed drawing rooms or clubs of five-star hotels to grouch about Modi’s excessively centralised establishment. After schmoozing with ministers and party officials for over six months, the pinstriped class has realised that the PM cares little about the coalition of the rich and famous, whose only aim is to get policy tailored as per their interests. If the tone and tenor of corporate discourse is any indication, Modi has to arm himself with instruments to counter the crusade soon to be launched by a section of the business world.

For him, there could be no better news than this. Historically, politicians who are favoured by forums like CII, FICCI etc. have never won the popular mandate the second time. What has surprised the PMO is India Inc’s inability to respond to the positive initiatives taken by the government. If manufacturing has hit a new low, it is not because of government inaction but due to the failure of Indian industry to start new ventures or complete the ones begun ages ago.

If press reports are to be trusted, vocal, well-connected, media-savvy corporate leaders feel Modi’s personal charisma is on the wane because he hasn’t come through on economic reforms. Their idea of reform is low interest rates, cheap land for new business ventures, less import duties and liberal concessions on personal and corporate tax. They believe good economics means a government of them, by them and for them. After interactions with the new establishment, they realise Modi may like to be seen rubbing shoulders with oligarchs, celebrities and the chatterati, but when it comes to economics, he is more of a Left-of-Centre leader than a blind promoter of free (for all) market. He has been pushing an indigenous agenda for governance. His slogan ‘Make in India’ has ruffled many feathers as it prevents foreigners from converting the country into a market and not a manufacturing hub. His decision to allow FDI in defence and realty sector is aimed at encouraging MNCs to create productive assets in India. He has introduced a few labour reforms, but is unwilling to give unfettered powers to employers to adopt whimsical hire and fire policies. The PM expects industry to move towards a Digital India, but by creating more jobs. For the past four decades, while investment in industry has risen enormously, the job opportunities created have been minimal, leading to increased unemployment. Even economic growth is skewed. Currently, 65 per cent of India’s GDP comes from the urban population while 65 per cent of Indians live in villages. Indian industry has failed to provide enough employment channels for rural youth.

The PMO is much peeved over the lobbying by business tycoons to change the Land Acquisition Act in a manner that would allow pliable state governments to hand over land to corporations at bargain basement rates. It is not a coincidence that a few ‘liberal’ ministers who have little to do with the Land Bill have advocated diluting its provisions. But both the PM and minister concerned have chosen to keep mum because they feel the Act has enough clauses enabling land acquisition for public utilities and not for mere corporate promotion. Over raising FDI cap in insurance, Modi has adopted an arm’s length distance. Since the bill is being touted as a major economic reform, Modi has let his ministers bargain with other parties to bring the matter to its logical conclusion, even at the cost of diluting the intent of the original draft. In education too, his ministers other than Smriti Irani spoke about reforms, but Modi let his minister carry forward her agenda of Indianising education.

NaMo isn’t impressed with the 35 per cent spurt in Sensex during the past six months, which he feels is just hot money meant to promote certain shares instead of benefiting the economy. In fact, there seems to be a conflict between Modi’s economic model and the wish list of entrepreneurs. Modi is in favour of demand-led growth, while industry is pushing for supply side economics. It desires capacity expansion so that companies can borrow liberally from public sector banks, import more by over-invoicing and provide high-cost final products for maximum profit. It is surprising that excessive supply hasn’t led to drop in prices. Inflation has eased mostly because of the fall in prices of consumer items. Real estate has collapsed not because flats are being sold at lower prices, but due to the reluctance of consumers to pay. There is no indication of decline in the FMCG and automobile sectors. The PM wishes to propel policies that will put more money in the hands of the consumer for both spending and saving.

Modi abhors excessive control on business and has spoken out against coercive retrospective taxation. His government’s decision to not appeal the high court’s verdict in the Vodafone retro-tax case reflects the PM’s will to provide a level-playing field to MNCs. But Indian industry has a ‘dil’ which always ‘maange more’. Modi is unlikely to offer any elixir to quench their thirst. He doesn’t mind meeting honchos from abroad and conveying his concept of good economics. After all, he is the only PM, who had earlier as a CM proved to the world that good politics leads to good economics. Modi’s Gujarat Model was based on the welfare state principle. He chose the social sector, women’s empowerment, education and an efficient bureaucracy to expedite decision-making. 

There is a feeling in certain quarters of the power circle that industry is mounting pressure on the government to tweak the next budget in their favour. But the PM is determined to unfold his own economic roadmap, which will force big business to turn ‘Make in India’ into the fulcrum of his dream to create a New India. Behind his chic look hides an undiluted and uncompromising Swayamsewak as Swadeshi Modi. His demeanour and the sheer authority of his personality is enough to stymie the most articulate honchos who graduated summa cum laude from Harvard, Wharton and Oxford. They could browbeat Manmohan Singh. But the Right-wing Leftist Modi is determined to make both Marx and markets irrelevant in creating a Modiscape of empowered India.

Prabhuchawla@newindianexpress.com; Follow me on Twitter @PrabhuChawla

Kashmiris Biting Bullet ...... Power & Politics/ The Sunday Standard/December 07, 2014

Kashmiris Biting Bullet for Ballot Shows Their Resolve to be Part of India Growth Story

Special is the word t h a t d e s c r i b e s Jammu and Kashmir the best. It is the only state in India that enjoys Special Category status with over 70 per cent of its government expenditure being funded through Central grants. It has its own constitution, and even its own flag. With less than 1 per cent of India’s population, it occupies over 3 per cent of the nation’s geographical area. Encircled by snowy peaks, the land of shimmering lakes, golden chinar forests, dancing streams and the legendary Chenab should be a global destination for tourists looking for peace and paradise. However, despite New Delhi pumping in money like Dal Lake’s water, Kashmir has been converted into a battlefield, where jihadists from across the border and the Indian security forces are engaged in a macabre duel of death.

Last week, the guns were back in the Valley with a vengeance. In less than 12 hours, 22 people, including a Lt Colonel of the army, lost their lives in terrorist attacks. Professional doves saw the Black Friday massacre as an attempt to establish the supremacy of bullets over ballots. But the hawks in the establishment considered it as a growing threat to India’s stability and unity from a brutal force motivated purely by faith. The former would be distressed to learn that statistics show no connection between the spurt in terrorist violence and voter turnout. The people of J&K have broken all previous records by turning out in massive numbers during the last two phases of the polls. But in 2008, too, the turnout had broken records. It means Kashmiris have just been following the national trend of rising voter participation in elections. As they assimilate more into the national mainstream through education, connectivity and aspirations, they don’t wish to be stereotyped as the ones against the democratic process. Since the late 1990s, Kashmiris all over the state have been rejecting boycott calls by separatists. According to records, over 60 per cent of voters participated in choosing their government in 2008—a 17 per cent higher turnout than in 2002. Did it lead to an increase in terror attacks? The numbers tell the story. Of the 34 killed in November 2008 when the elections were held, 29 were terrorists. There were 541 fatalities in the Valley in 2008, of which 382 were jihadists and 90 were from the security forces. During the current state polls, in which voter turnout is expected to cross 70 per cent, 22 persons, including 10 terrorists, have been killed. In the first week of December alone, 21 have fallen to bullets. Significantly, more people were gunned down in August when elections had not yet begun. Sadly, 2014 seems to be the Year of Terror in Kashmir. With three weeks left for the year to close, 185 people have already been shot against 181 last year.

It is becoming quite clear that the revival of terror attacks has nothing to do with the elections. The combined might of the Pakistani establishment and jihadis consider stability in Kashmir as a threat to their unholy mission of spreading tenebrous tentacles throughout India. The conflict has become a war between medievalminded, gun-toting mercenaries and a democratic India. For the past few years, the terrorists have chosen the security forces—a symbol of Indian state power—to create panic in the Valley. Earlier they were striking at will and killing more civilians than securitymen. According to reports, around 15,000 civilians lost their lives as against 6,200 members of the armed forces in J&K since 1988. The maximum number of civilian deaths (1,333) occurred in 1996. This fell to just 20 in 2013. Even the number of security personnel who died in terror action declined from 376 to 61 during the same period. But this year, more army men lost their lives than civilians. It is a sobering thought that despite killing over 23,000 terrorists in the last 25 years, there is no let-up in their resolve to demolish India. It is a matter of record that the maximum number of jihadists killed (2,850) was in 2001 when NDA was ruling the country. The credit for quelling militancy goes to our security forces. If fewer and fewer civilians have fallen to bombs and bullets, it is due to better intelligence inputs and effective use of the military establishment.

Despite the exemplary performance of India’s security forces, numerous NGOs and political leaders have been mounting pressure on the Centre to dilute the Armed Forces (Special Powers) Act, which empowers the Army to deal with jihadis with maximum force. As one officer put it, “Our jawans are getting killed so that civilians can live in peace. Imagine what would happen to unarmed ordinary people if we are locked up in our barracks with our hands tied behind our backs.”

It could be argued that diplomatic pressures and a favourable environment for dialogue have led to diminished tensions on the borders. But that doesn’t explain the rise in unprovoked incursions and open support given by Pakistan’s political leadership to Hafiz Saeed, the prophet of holy war in India. A section of Pakistani civil society has been providing financial and strategic support to India’s enemies while simultaneously demanding dialogue.

Last month, over two dozen wise men from Pakistan and India assembled in Delhi to push India for talks and encourage commercial and cultural exchanges. They hardly mentioned LeT or other terror outfits which are openly working against India’s interests. India and its neo-secular liberals have so far been more than indulgent in ignoring national interests while pleading for jaw-jaw. During the past two decades, ersatz peaceniks have compelled various Indian governments to appoint commissions, special groups and even Union ministers to deal with Kashmir affairs so that separatists and terrorists can run the state with guns and primitive laws. But PM Narendra Modi doesn’t look like a pushover. While Manmohan Singh wanted to create dubious history by converting the LoC into international territory, Modi is determined to hoist the saffron flag at Lal Chowk and chant Vande Matram in the J&K Assembly. The Valley may witness more blood spilling in the weeks to come, but the growing faith of Kashmiris in the Indian state is encouraging them to walk through the torrent of bullets to reach for ballots to become an equal partner in the unity and growth of the nation.

 prabhuchawla@newindianexpress.com Follow me on Twitter @PrabhuChawla