Modi Government

Keywords:Make in India and Digital India, Start-up India, Stand up India, BetiBachao, BetiPadao,
Clean Ganga Mission, Mann kiBaat
Make in India
To facilitate investment, boost research & development (R&D), ensure product originality and create
skill-based jobs by establishing industrial sector; major national programme was started by
NarendraModi. Modi has reached out to the world with his idea of Make in India and it has generated
positive response from foreign companies. Key Labour Law reform in the pipeline will boost
manufacturing industry and foreign investment in India. Under the initiative, brochures on the 25
sectors and a web portal were released. Before the initiative was launched, foreign equity caps in
various sectors had been relaxed. The application for licenses was made available online and the
validity of licenses was increased to three years. Various other norms and procedures were also
relaxed.
Swachh Bharat Abhiyan( Clean India Mission):
This campaign aims to accomplish the vision of a 'Clean India' by 2 October 2019. The components of
the programme as listed in the SBM guidelines are:

Construction of individual sanitary (mostly pit latrines) for households below the poverty line
with subsidy (80%) where demand exists.

Conversion of dry latrines (pit latrines without a water seal) into low-cost sanitary latrines.

Construction of exclusive village sanitary complexes for women providing facilities for hand
pumping, bathing, sanitation and washing on a selective basis where there is not adequate land or space
within houses and where village panchayats are willing to maintain the facilities.

Setting up of sanitary marts.

Total sanitation of villages through the construction of drains, soakage pits, solid and liquid
waste disposal.

Intensive campaign for awareness generation and health education to create a felt need for
personal, household and environmental sanitation facilities.

End of manual scavenging of garbage.

The program plans to construct 12 crore toilets in rural India by October 2019, at a projected cost of
1.96 lakh crore (US$30 billion).
Jan DhanYojana: Under this scheme

Account holders will be provided zero-balance bank account with RuPay debit card, in addition
to accidental insurance cover of Rs 1 lakh(to be given by 'HDFC Ergo').

Those who open accounts by January 26, 2015 over and above the 1 lakh accident claim will
also be given life insurance cover of 30,000(to be given by LIC).


After Six months of opening of the bank account, holders can avail 5,000 overdraft from the
bank.

With the introduction of new technology introduced by National Payments Corporation of India
(NPCI), a person can transfer funds, check balance through a normal phone which was earlier limited
only to smart phones so far.

Mobile banking for the poor would be available through National Unified USSD Platform (NUUP)
for which all banks and mobile companies have come together
By 7 October 2015, 18.70 crore accounts were opened, with around 25146.97 crore (US$3.8 billion)
were deposited under the scheme. Main purpose of Financial inclusion is to transfer direct subsidies,
provide pensions, insurance etc for all strata of society
OROP: Modi government announced OROP Policy with following crucial pointers

The implementation of OROP from 01 July 2014, with 2013 as the base year for calculation

Pensions will be re-fixed for all pensioners retiring in the same rank and with same length and
service as the average of minimum and maximum pension in 2013. Those drawing above the average
will be protected.( Demand to be pegged at maximum of scale)

Pensioners who retired voluntarily will not be covered (Primary contention . Demand to include
all pensioners)

Pension would be re-fixed every five years (Demanded was 2 years)

Arrears with respect to the implementation date of July 2014 would be paid to veterans in four

Half-yearly installments while widows will get the full benefit at once.

FDI Caps and Privitization

Composite foreign investment cap for private insurance firms at 49% ( Composite implies FDI + FII) ; FIPB
clearance required for more than 26% FDI
Composite cap for foreign investment in the defence sector at 49% ; All proposals will require approval
from the Foreign Investment Promotion Board (FIPB)
Railway operations and projects can receive up to 100% FDI
FDI cap in special technology area raised to 100%
In line with Make in India, Out of 25 sectors, except Space (74%), Defence (49%) and News Media (26%),
100% FDI is allowed in rest of sectors.
Limiting Corruption:

Changes to the APMC Act: The govt. asked the state govt. to delist fruits and vegetables from the
Agriculture Produce Marketing Committee Act to eliminate middlemen, prevent hoarding and check
inflation.
Government Posts: Removing interviews for entry level government posts, making it less corruptible
and more transperant
PAHAL yojna for LPG Gas subsidy: World's biggest subsidy transfer scheme to reduce corruption, and
middle men and at the same time targeting user who really needs subsidy in this scheme. Many Rich
Patriots gave up their LPG subsidy benefitting Indian exchequer.
On line Auctions of Coal-mines generated almost 3,00,00+ Cr from 35 Coal mine blocks out of 204.
Limiting Bureucracy
Abandoning Planning Commission: A body with more powers, more brains and diversity and lesser
interference is needed in this era of importance of strategy and careful progressive planning and hence
NITI Ayog is created
NJAC: National Judicial Appointments Commission is created to get rid of the partiality and lack of
transparency in such an important pillar of the country. It may result in more efficient working at the HC
to the SC level. But recently The Supreme Court, by a majority opinion, had struck down as
unconstitutional the NJAC Act and also the 99th Constitution Amendment, which provided for the
establishment of the National Judicial Commission to appoint judges of the High Court and the Supreme
Court.
Focus of North East India:Trying to bring accelerated development in the east and northeastern parts of
the country by prioritizing these regions and bringing in Railway infrastructure to increase connectivity.
This move also helps in maintaining National integrity from China
Black Money Law
The black money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (black
money law for short) offers a limited compliance window from 1 July 2015 to 30 September 2015
within which one can come clean and pay a tax of 30 percent on foreign wealth secreted away together
with a penalty of another 30 percent. The law says should the assessing officer unearth undisclosed
foreign income and asset post this limited amnesty, the consequence would be 30 percent tax plus
penalty of 90 percent with the depressing prospect of cooling heels behind bars for ten years.
As of Aug 15, 2015 Rs. 6,500 crore of undisclosed foreign assets have been declared under the
compliance window of the new law.
GST:The government had set the stage for a possible rollout of GST next April by introducing the
Constitution Amendment Bill in Parliament during the budget session. The Bill, which has been approved

by the Lok Sabha is, however, pending in the Rajya Sabha, where the ruling NDA does not have a
majority.
MAT: Minimum alternate tax ; Government says foreign firms with no permanent establishment in
India will be exempt from minimum alternate tax on Sep 23rd 2015 giving a huge relaxing point for
foreign investors. The controversy erupted after the income-tax department issued notices to more than
50 foreign portfolio investors to pay MAT. Foreign investors opposed these notices, arguing that MAT
can only be levied on book profits, which they do not maintain in India. In May, finance minister Arun
Jaitley tried to address investors concerns by setting up a panel led by justice A.P. Shah to study and
clarify the issue. The committee recommended that MAT cannot be levied on foreign portfolio investors
as well as foreign companies who have no permanent establishment in India. The government will now
amend section 115JB of the income tax Act to ensure that MAT provisions are also not applicable to a
foreign company that does not have a permanent establishment in the country and is a resident of a
nation having a double taxation avoidance agreement (DTAA) with India, the finance ministry said in a
statement. The act will be amended with retrospective effect from 1 April 2001.
Digital India: The objective of the Digital India Group is to come out with innovative ideas and practical
solutions to realise Honble Prime Minister Narendra Modis vision of a digital India. Prime Minister
Modi envisions transforming our nation and creating opportunities for all citizens by harnessing digital
technologies. His vision is to empower every citizen with access to digital services, knowledge and
information. This Group will come up with policies and best practices from around the world to make
this vision of a digital India a reality.