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Top British weekly Economist accuses Modi of behaving like Gujarat chief minister

By Our Representative
Top British weekly “The Economist” has said it again. In a commentary marking Prime Minister Narendra Modi’s one-year in office, it has said that the alleged improvements in the economy is because of “serendipity” -- because of “oil prices.” Titled “Modi’s rule: India’s one-man band”, it adds, the country has a “golden opportunity to transform itself”. But the way Modi is moving suggests the country “risks missing” the opportunity.
Pointing out that progress under Modi has been “frustratingly slow”, the influential weekly (issue dated May 23) says, this has happened because “Modi has concentrated more power in his own hands than any prime minister in recent memory. The problem is that India needs a transformation—and the task is too much for a one-man band.”
In fact, “The Economist” has castigated Modi exactly for what his critics have long been saying – “he is still thinking like the chief minister of Gujarat, not a national leader on a mission to make India rich and strong.”
“The prime minister believes that only one man is destined to lead India down this path: Narendra Damodardas Modi”, “The Economist” says, adding, on the reforms front “Modi’s record is underwhelming. The past few days have brought the tiniest of baby steps towards privatisation: eight state-run hotels may be sold off.”
Saying that Modi is living in the “delusion” if he thinks that “time is on his side and that big unpopular decisions can wait”, “The Economist” says, already “popular discontent” is brewing. It points to how “surly voters drummed his party out in state elections in Delhi”, adding, already there is a huge dislike” for his attention to diplomacy overseas – he has complete “52 days abroad in 18 countries over the past year.”
Then there are people who are “put off by his narcissism, embarrassed that he met America’s president, Barack Obama, wearing a dark suit with all 22 letters of his name stitched over and over into its golden pinstripe”, “The Economist” says, adding, “As he cracks down on groups like Greenpeace, some complain of his authoritarian streak.”
Pointing out that “national politics is a long way behind the states”, “The Economist” underlines, “Modi cannot blithely assume his power will grow. The prime minister’s office cannot expand to do everything. It is time to relaunch his government by bringing in outside talent.”
Asking Modi to work the way the previous UPA government acted, the weekly says, “Like the previous government, he should get in bright people from the private sector—especially as the BJP is short of capable leaders—to strengthen, say, the finance ministry and the corporate-affairs ministry.”
Wanting Modi to “lead a national campaign to ease the world’s worst labour laws”, the weekly says, “Perverse restrictions on domestic trade in farm produce should go. Private companies could compete to make the railways more efficient. Infrastructure must be built faster, which requires a better law on acquiring land.” And, “state-run banks” should be “ideally private hands”.

Comments

MODI: you don’t need a Govt to be POOR but you do need it to be RICH!
For 1100 acres of land in Sanad in 2008 Tata Motors paid Rs 900/sqm to the Gujarat Government. The government acquired the land at Rs 1,200 per square meter from the farmers this does not include expenses for acquisition.
Tata Motors only invested Rs 2000 crores and got a government loan of Rs 9,570 crore for 20 years at 0.1 per cent rate of interest. This loan was 23% of Gujarat’s budget for 2008.
On top of other subsidizes;100 acres of land at a highly subsidized rate near Ahmedabad for Tata township. (Tata has recovered part rather full initial investment of Rs 2,000 crore in Township and made money by over billing in plant & Machinery for Nano)
Modi has lured away Nano plant using huge amount of money directly from Gujarat government’s coffers. What has the state gained till now, Nano has failed, so have “cascading effects of the plant” Tata Motors’ Sanand plant stays idle (April 2013 plant utilization was mere 4.5%).
The attraction for corrupt Industrial Houses and MNC’s is not Modi but Free Money.
Practically same story is for Ford, Suzuki, ADANI, Ambani etc. on top of this they all received various Incentives in other words poor Tax Payers are paying to the rich multi billion corporations.
Total Subsidies to TATA Rs 30,000 Crore, Suzuki 20,000 Crore & Ford 20,000 Crore.
Under Modi Rule Adani GP revenue from $765 Million in 2002 rose to $8.8 Billion in March 2013 while net profits climbed even faster.
Income Tax Incentives
10 year corporate tax holiday on export profit – 100% for initial 5 years and
50% Corporate Tax Holiday for the next 5 years
Exemption from dividend distribution tax
Indirect Tax Incentives
Zero customs duty
Zero excise duty
Exemption from central sales tax
Exemption from service tax
Under Modi 60,000 small scale industries shut down
Over 5,500 farmers in the last 10 years have committed suicide in the state but police have been instructed by Modi govt not to register cases.
CAG reports from 2001-2012/13 show corruption to the tune of Rs 1.5 lakh crore. The state took nine years to appoint a Lok Ayukta."
Gujarat's budget increased from Rs 28,000 crore in 2001 to Rs 1,20,000 crore in 2013-14, public debt during the same period increased from Rs 26,000 crore to Rs 1,76,000 crore."

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