IndusVani
A M on th l y N e w s le t te r
INDUSTRY EXPECTATION WILL COMPEL DELIVERY FROM MODI 2.0
What to Expect under Modi 2.0?
By Salil Mathur (A consultant with IndusGuru)
As the nation moved closer to the general elections, the
economists of political leanings churned out fervent
essays, which were largely rhetorical and made little
impression or were not even read. Through the 1990s
and early 2000s the economists and planners worked
strenuously to present Congress as the only credible
party that could deliver welfare and the doles and loan
wavers which were designed to show the ‘family” in a
benevolent light.
All that changed in 2014
as Modi’s Swach Bharat,
Jan Dhan Yojna,
Auyushman Bharat or
Awash Yojna and some
more such schemes were
directed towards
sustainable social up-
liftment. Modi’s four
years in office also were
largely pro-reforms
marked by breakthrough
tax reforms in the form of
GST- a bold move to
demonetise five hundred and thousand rupee notes.
The move in many ways succeeded in pushing
unaccounted money into formal economy. Modi had to
put up with harsh criticism for creating an artificial cash
crunch in the economy that may hurt demand and slow
down a recovery and he withstood a sinister attempt to
demonise him by so-called economists. To cut the chase
and come to the point, these are the reforms that will
be the reagents of the growth and expectation of Modi
2.0 government.
With a stronger mandate and an opposition with lesser
teeth, Modi will be under tremendous pressure like no
other government in the past, to deliver economic
reform and reboot the economy with measurable
results. Unlike the first term, the strategy in the second
term should reignite growth with prudence as a priority.
We expect a mix of rural reflationary policies,
infrastructure spending, tax simplification and social
investment. Here are a few expectations:
1. Un-employment Issue is real and it cannot be
ignored or clarified by pointing to growth in the self-
employed sector. No one should make light of this
issue because creation of well-paid jobs for this vast
workforce is necessary for transforming India’s
economy. It goes without a debate that job creation
is dependent on reforms in all areas of the economy.
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Date: May-2019 201905-Newsletter-IndExpModi2.0
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2. Disinvestment or monetising of government
assets will generate funds for public schemes. The
government needs to quickly plan a big selloff
programme. The main priority should be to exit all
non-strategic PSUs and shut the loss-making ones.
Employees of such organisations could be given
voluntary retirement schemes.
3. Reforms in Banking are a crying need. The idea of
few big banks should materialise
under the Modi 2.0 government.
Small banks that are not viable
should be merged with big banks.
4. Insolvency and
Bankruptcy Code (IBC)
consolidates all laws of insolvency
and bankruptcy to tackle Non-
Performing Assets - a problem
that has been pulling the Indian
economy down for years. The law
contains defaulting
businesspersons from operating
according to their whims and
fancies. It’s also a boon to the merger and
acquisition industry by making distressed assets
available for sale to potential buyers. Business
continuity is ensured with possibilities of expansion.
However, IBC does need further fine tuning to cut
down on resolution time. The laws need to be more
stringent and quicker disposal by judiciary is vital or
else defaulters will be at an advantage.
5. GST simplification by having only two slabs and
doing away with the top rate of 28%.
6. Smart City needs a major push otherwise it may
slip off the priority list.
7. The spectrum roadmap on 5G - we believe that
some planning is going on to allocate spectrum
which could see the implementation of 5G. 5G will
impact business growth immensely.
8. Ease-of-doing-business related initiatives as
most sectors of our economy are now open for FDI.
More than 90 per cent approvals have been put on
the automatic route. Such measures have propelled
higher inflow of FDIs but a lot needs to be done in
reducing bureaucratic indifference and lethargy.
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9. Reviving Manufacturing - without a deep focus on Chai Time Reads

programmes like “Make in India”, “Startup India” As part of our promise to build a learning network, every
and “Skill India” the manufacturing is unlikely go month we will select and curate for you a recently
anywhere. However, long term strategy seems to be published media articles on the subjects of our interest.
well in place and a success in manufacturing story Alternatively, we will bring to you a brief highlight on the
will go a long way in job creation too. achievements and / or initiatives of our consultants. Hope
10. Education has always missed being in top it makes for interesting reading.
priority zone. I believe Modi government has plans Our consultant Sandeep Raut is the keynote speaker for
to unveil new policy in education that plans to fill Conference on Data Science & Advanced Analytics - Jun
five hundred thousand vacancies in Institutions of 18, 2019. Sandeep is Top 10 Global Digital
Eminence. The importance of quality faculty cannot Transformation Influencers to Follow Today by IDG |
Top 10 global digital transformation influencers that will
be over emphasized. Quality research can only drive
change your world by Enterprise Management 360° |
innovation in industry. A plan to add ten more
Ranked #8 in Top 20 Global Thought Leaders in Digital
Institution of Eminence should also at the same time
Transformation technologies by Thinkers360 | Ranked
fill in quality teachers.
#3 in Top 25 Digital Transformation Blogs and Websites
11. Labour Reforms: steps should be taken to
on the Web |
implement the recommendations of the Second
National Commission on Labour. Formulating four
Comments? Questions? Feedback?
labour codes on wages; industrial relations; social
We'ds like to hear your feedback and ideas for our
security and welfare; and occupational safety,
portal. Is it intuitive and easy to use? Did you get lost
health and working conditions by amalgamating,
somewhere along the way while using the portal?
simplifying, and rationalising the relevant provisions
We have also started the blog to enable the clients
of the existing central labour laws are some of steps
respond to our articles. This fulfills our promise to
that cannot be delayed.
provide a networking platform to our clients.
12. Agrarian distress is an elephant in the room and
If you have any questions, suggestions, comments,
needs out of the box solutions. The government is
advice, thoughts or you just want to share something
already focused on doubling farmer’s income by
with us, please get in touch. We will also be more than
rural centric programs like direct income support;
happy to provide you with more information about our
also, MSP hikes are surely going to ease the
services.
farmer’s distress.
If you'd like to contact us, feel free to use the form on
In short, the industry expectations will compel Modi 2.0 our website. You can also reach us by good old
to deliver on its promises and will permit no room for
telephone. Either way, we would love to hear from you.
dilly dalling. It will be a good thing to have a
government on its toes. We use a message from an
industry leader Harsh Goenka, which nicely sums the IndusGuru Network Partners LLP
story of expectations: Modi might agree with all the 351, Corinthian, Linking Road,
suggestions except for the suggestion of a short break. Khar West, Mumbai 400052
What Modi 2.0 should now do: Phone: +91-22-6146 4040
1. Job creation for youth Mobile: +91-98203-72596
2. Develop credibility of institutions Website: www.indusguru.in
3. Drive agri reforms Email: info@indusguru.in
4. Usher in social harmony
Blog: www.indusguru.in/blog/
5. Improve talent deficit in government
6. Thrust on manufacturing and infrastructure
Social Media:
Above all, he now deserves a short break!
The views, thoughts, and opinions expressed in the text belong
solely to the author and do not reflect the position or official policy
of IndusGuru Network Partners

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Date: May-2019 201905-Newsletter-IndExpModi2.0 Page: 2/2