As a politician, Prime Minister Narendra Modi has two primary characteristics. First, he denies going by the term-sheet set by others. He sets his own terms.
Second, his eyes are always set of bigger goals and his finest ability is to sell that dream to a country of nearly 140 crore.
In his speech on the 74th Independence Day, Modi used both these qualities optimally, so to create grounds for a major shift in Indian policy making, where silos will not be tolerated and economic integration and inclusion will be of topmost priority.
Geopolitical strategy
The ultimate aim of this shift – that promises to convert India from an importing economy to an export economy – is to claim its stake in the global power order.
Though the Prime Minister didn’t mention it directly, but his aim is clear. India should wield as much power as China in the United Nations Security Council.
The geopolitical anchor of India’s next course of strategies was clarified in ample reference of security threat at Northern border, promise to step up security infra on both land and maritime borders to unprecedented scale; and priorities set on economic cooperation initiatives with ASEAN and West Asia.
That was alongside the promises of cooperation-led growth with immediate neighbours.
In short, while India stuck to its promises of cooperative growth in South Asia; she is counter-balancing Chinese influence in the region, though stronger relationships in the extended neighbourhood of South East and West Asia.
Both regions have strong influence in the politics of South Asia.
Atmanirbhar Bharat
The cornerstone of the entire planning is to make India stronger from within.
The Prime Minister elaborated that his Atmanirbhar Bharat campaign is not inspired by closed economy fundamentals. The call for reducing imports is merely a small fraction of the plan to help India earn its rightful place in a highly connected global economy.
India is not looking forward to creating an inefficient economy riding on the narrow principles of import-replacement.
It is aiming to address the core inefficiencies of the economy that came in the way of the country’s ability to become a manufacturing destination.
“How long should we keep exporting primary goods and import finished goods?” he asked.
A quick reference to India’s huge trade deficit with China will signify the importance of this strategy shift. India exports iron ore to China and imports steel.
Ever since the Covid-19 pandemic hit India, the Modi government was keen to use the massive disruption as a handle to restructure the Indian economy.
The entire set of announcements under Atmanirbhar Bharat programme were aimed in this direction.
Focus Infrastructure
However, there were two notable omissions in the measures announced so far.
There was no reference of the country’s infrastructure building plan, which is crucial for economic recovery and second, the strategy for policy implementation. Both the areas are addressed in today’s speech and they are linked with India’s global ambitions.
The Rs 110 lakh crore Pipeline of 7000 identified infrastructure projects will bring cheers to the entire cross section of India’s manufacturers and project contractors, apart from solving employment issues.
Add to this, the plan to connect over six lakh villages and Lakshadweep Islands by optical fibre network in 1000 days; focus on border and coastal road over and above the already sanctioned projects under Bharatmala and Sagarmala schemes; and Indian businesses have reasons to be happy.
The value addition potential will be particularly high as imports from China are facing increasing tariff and non-tariff restrictions.
Having been in power for six years, Modi is aware that the existing model of governance and project implementation, can ruin his plan for time bound development. And, he made it clear that he will destroy the silos be it at the central or State level.
From one ration card to one health-ID - he is looking forward to integrating a highly disintegrated economy.
As far as transport infrastructure is concerned, he made it clear that he will not tolerate compartments in the name of rail, highways, ports, shipping etc.
It is not clear if all forms of transport will be brought under a single ministry, as is the practice in some countries.
Finance unresolved
The beauty of Modi is in taking people along in the most complex of agendas like economic restructuring.
He did it with ease in today’s speech.
He is using the ‘vocal for local’ slogan as a symbol of economic nationalism, a force to unite people who are divided by language, castes and religion.
Rest assured there will be more announcements on Atmanirbhar Bharat in the days to come. However, there is still one unresolved issue.
How will India manage the finances? Part of it is surely managed by directing bank finance as in the case of MSMEs etc.
The government also planned to shore up revenues through massive disinvestment and privatization programmes.
However, such plans are either getting delayed or facing challenges due to the pandemic and gloomy economic scenario in both Europe and America.
It is still not clear but probably the government has kept the option of printing money open.
It is a risky proposition but if the money is well spent in upgrading infrastructure and vaccines do arrive by end of this year; sentiments will receive a definite boost to help India mitigate the risks.
(Pratim Ranjan Bose is a Kolkata-based Senior Journalist. Views are personal.)
