Reforms

The Maahaul of India Shining!

If you are an avid watcher or reader of global commentary, you cannot miss the ongoing spotlight on India and mostly for good reasons.  India seems to be the shining star in what otherwise seems to be a global economy that is still coming to terms with post-Covid recovery and the spiralling effects of the Russia – Ukraine war. The past few weeks have seen a downpour of bad news on the economic front globally. And it is not just from the US which is a prime mover in the global economy but other developed nations as well.

India though seems to be a lonely planet in the universe. The stock markets are on a historic high as we approach the end of this calendar year and despite the global demand situation, the Q2 GDP numbers at 6.3% demonstrate that India is tiding over the global headwinds reasonably well. Therefore, on cue, we have been seeing many opinion pieces, commentaries, and encomiums of late not just within India but globally, saying that this could be India’s decade and so on. I am calling this the “India Shining” sentiment for easy understanding! The point to note is the maahaul of India Shining keeps visiting us every 5-6 years and ebbs off after a while.

The phrase “India Shining” was of course used for the first time by the Vajpayee-led NDA government to project a positive outlook of the country to foreign investors back in 2003-04. The campaign was envisaged by Jaswant Singh as the finance minister. Later on, it took shape of a political campaign for NDA in the 2004 polls. Many expert commentators till today opine that the India Shining campaign was the main reason for its defeat in the 2004 Lok Sabha elections. If one does a fine toothcomb analysis of the results, it will be clear as daylight that NDA was defeated due to other issues. We will keep that for another day, another blog.

The campaign did help to improve the image of India worldwide in that period. India was part of the BRICS coinage, a commentary that would have done countries like India, China, Russia, etc more good than any global PR campaign ever did. I remember in that period wherever I went, the BRICS story dominated discussions in board rooms and what followed was a long period of India Shining till the Global Financial Crisis in the form of Lehman shock struck in 2008.  If you recall, the period 2003 – 2008 saw huge investments in real estate and retail with the free flow of “Hot money” to India, all thanks to the positive India Shining sentiment.

The next brief and passive wave of India Shining started in 2014 after Narendra Modi took over as the Prime Minister of a full majority government after 1989. India was the flavour of the world then and this lasted for a few years till 2017.  The stock markets saw new highs with a heavy inflow of FII in this period.

What we are seeing now is the return of the BRICS type hype. The difference is, three of the constituents of BRICS namely Brazil, Russia, and China are no longer in the good books of the world while India continues to be. There are a few things that are going well for India overall now. A politically stable government that is confident in itself and no longer suffering from coalition compulsions.  A government led by a leader whose popularity and credibility among the masses is unprecedented in a long while which helps take decisions without looking over one’s shoulders.  Introduction of structural financial reforms like the GST and IBC that have stabilized and yielding results. India coming out of Covid relatively better off with life and business back to normal. The swift post-pandemic recovery in the economy despite the global headwinds due to the ongoing war. A nuanced management of the economy in the past few years and in a sense better than what the minders of the economy are being credited for, in my opinion.

Countries and Corporations who had conceived the China+1 strategy back in 2013 to de-risk from China are actually getting serious about executing the strategy now by shifting part of production elsewhere. The Covid pandemic and the way China has been handling the pandemic has now morphed the China +1 strategy into ABC (Anything but China) strategy.  These have certainly helped the cause of manufacturing in India as we can see in the exports of Mobile phones out of India now. We are still scratching the surface here and still miles to go before we become a credible +1 in manufacturing.

There is a visible infrastructural transformation that is happening in India as we speak. Highways, Railways, Airports, and seaports are all getting upgraded or added at a speed not seen before. Again, the pandemic derailed the progress for two years otherwise, many would have seen completion by now.

There is credence therefore to the India Shining sentiment that we are witnessing at the moment. Here is where I would like to add a caveat. Developed countries like the US, Western Europe, Japan, and so on look at other countries when their internal situations are not good. That is how China got the benefit of a huge benevolence from the US in the 90’s when the US outsourced almost its entire manufacturing to China.  Similarly, the US Economy is going through a trough presently with the spectre of a recession looming large. The economy is indeed resilient but there are lots of ifs and buts. Commentators call this the “Yes and But” situation.

If you look at India, I would say we are in a “No and But” situation. Living in India, one cannot resonate easily with the India Shining maahaul. Our cities are in a state of perennial under-construction.  Projects, whether they are flyovers or Metros just don’t seem to finish.  Interest rates have become so high that have pushed EMIs over the roof.  IBC has not helped to resolve quickly the issue of bankrupt companies. In Mumbai, bankrupt builders have ditched projects midway spoiling the aspirations of so many middle-class families and filling the skyline with incomplete towers. Jobs and Unemployment data point to a very grim situation for the youth.

But the economy is indeed growing. GST collections have been on a healthy trend. People are travelling and holidaying like there is no tomorrow. Just look at the long queues for check-in and security checks in big airports like Mumbai and Delhi in the early morning hours. Festival and marriage shopping crowds have been unprecedented of late in shopping areas in all cities. Cheap data and bandwidth have transformed our day-to-day lives in more ways than one. The “India stack” is a global case study. Amidst all the negative sentiments globally, there is an air of positivity in India. We have to move to a “Yes and no But” scenario that too as early as possible.

As Shekhar Gupta says in one of his columns, we have a habit of flashing victory signs early.  India as we speak is still a WIP and a lot of work is yet to be done.  From here, what we need is an uninterrupted home run where the economy keeps clocking 7-8% if not more on a year-on-year basis for 20 years.  If that happens, we will not be talking of just a maahaul but an actual India shining!

Pic credits: Alex Fine in The Economist dated 13th May, 2022.

Agnipath and not Agnipast!

“Change is the only thing that is constant” is an oft repeated phrase that has now become a cliché! In a real world that is not Utopia, the only thing that is constant is resistance to change. “Where are the big bang reforms?” This was a familiar question from the commentariat in the first few years of the Modi Sarkar. Then when the Sarkar started implementing reforms of the big bang variety, the question changed to “Why is this needed now?”. We saw this when the much-needed reforms in the agriculture sector were introduced. Finally, the government had to roll back the same. In my blog (read here) when the farm bills were repealed after protracted agitations, I had written on the lessons for the Modi Government in bringing in reforms. There are more lessons coming up!

Here we are, again in the same boat. The Government announced Agnipath, a scheme that brings about radical changes or reforms in the recruitment of jawans for the armed forces. And post the announcement, we have been seeing the same scenes playing out in terms of agitations and approach of the government. Literally speaking Agnipath has set parts of the country on fire, and this is extremely unfortunate.

Most commentators and domain experts acknowledge the need for these reforms. Yet, the section of the population which is supposed to benefit from these have an angst towards these. The result is what we see playing out on our respective screens.

From whatever I have seen and heard on this issue, the biggest issue around the proposed Agnipath program is the timing.  For the past 2 years, due to Covid, recruitment to Armed forces through recruitment rallies have not happened. The process is at different stages and the candidates are going through an agonising period of prolonged suspense, frustration and at the end of the day some hope.  Aspiring candidates are at different stages in the process – some awaiting their medical, some awaiting the final letter, some at different rounds and so on. So, all the while they have been forced to keep themselves fit and ready for the process to come to an end now that things are getting back to normal post Covid.  All along the candidates have been given the reason of Covid for the delay in the process.

Now comes the announcement of Agnipath which totally puts paid to their hopes of not just joining the services that will ensure a settled life but, a 3/4th probability of getting out of the services and start all over again in 4 years. What we see as raucous demonstrations are a result of the pent-up frustration in the first place due to last two years of agonising wait and second now finding that the game has changed.

If one must look at the causes therefore for this unrest, they can be summarised as follows:

  • First the timing.  As I have mentioned before, the proposed changes have come at a time when recruitment has not happened for two years.
  • Second, the proposed changes have made some of the candidates ineligible due to the age limits. They feel slighted.
  • Third, there is an element of uncertainty because of the 25% absorption clause even for those who get selected. Therefore, this is seen as a harbinger of struggle in life if one misses the bus!
  • Fourth, the probability of getting selected even if this is a short tour of duty has reduced since the overall recruitment numbers has been reduced. In general, around 60,000 get selected in a year. Now that has come down to 40,000 of which only 10,000 will get absorbed after four years. This is my understanding. So, the reduction in intake is drastic and therefore the probability of getting into a settled job with the forces has also reduced for the aspirants drastically.
  • And finally, the sudden drastic communication of the rolling out of the program.

Having said all this, since the proposed reform packaged as the Agnipath scheme is much needed for reducing the average age, reducing the pension budget, shifting the allocation from boots on the ground to weaponry, technology and sophistication, the government must stay the course but probably with a few course corrections.  Here’s what the government could have done in rolling out this program and probably it could still do:

  • Over to Overlap: In businesses, when we try to bring in some changes that tend to disrupt long standing processes, we deploy a tactic called “Overlap”. I strongly feel that in this case also, the government could have brought in this new program with an overlap clause. This means, the existing recruitment program will continue as it is for 2 or 3 years while the new program will be introduced in phases. This of course increases the overall intake for two years but that is a smaller cost for bringing in a reform that has benefits in the long run. The candidates who are part of the ongoing process would not have felt slighted. The new candidates would come in knowing fully the contours of the new program. This would have taken care of the 1st, 2nd, 3rd, and 4th issues mentioned above.
  • Float the trial balloon: Now coming to communication and therefore getting feedback before implementing the same, the government could have used a time-tested technique of leaking parts of the program to select journalists. When key elements of the program appear in the media quoting “as per sources”, it gives a window for the government to own/disown parts or the program in full depending upon the feedback. In this case, the government could have easily got an idea of the ground level feedback and therefore timed it better. Also, aspects of the program which the government is now making changes like the one-time extension of age limit and other ministries bringing in notifications for absorbing Agniveers could have been built into the program itself by floating this trial balloon.

Though some of the commentators particularly from the services feel that this should not be seen as an employment generation program, the fact of the matter is, in India there are districts in states like Bihar, Eastern UP, Bundelkhand, Haryana to name a few, where getting into the forces at the sepoy level is a primary source for employment for the youth. This explains the reason for the skewed nature of the protests and outbursts as far as geographic spread is concerned.  The irony is, what probably started as spontaneous outbursts which resulted in destruction of public property at will has now turned into a more orchestrated campaign to create unrest in the country.  Nupur Sharma issue is now history!

By going full fledged with the announcement, the government has put itself in a quandary and the program in jeopardy. Now coming out of the hole and still roll out Agnipath even with some changes will be a real Agnipariksha for the government! Hope this doesn’t go down as “Agnipast”!

When Farm laws became Former laws and the lessons therein!

Guru Nanak Jayanti henceforth, will have an additional reason for celebration for many. Apart from celebrating the revered Sikh Guru on his birthday, the day will be also be remembered and celebrated for bringing Narendra Modi’s strong government down on his knees. This week on the day of Gurpurab, the Prime Minister chose to announce the repealing of the three farm laws which were meant to reform agriculture. This after almost 18 months of relentless protests by farmers mainly in Punjab, Haryana and Western UP. That the government had to finally relent and nullify the laws is unfortunate.  From here on, it is going to be tougher for this government to push through reforms of any nature. The opposition and the other adversaries have smelt blood and have found the soft underbelly of this government and hence a template for pressurising this government.

Farmers celebrate after India’s Prime Minister announced to repeal three agricultural reform laws that sparked almost a year of huge protests by farmers across the country in Singhu on November 19, 2021. (Photo by Xavier Galiana / AFP) (Photo by XAVIER GALIANA/AFP via Getty Images)

This means that moving forward, the Government needs to be inventive and creative in pushing through contentious reforms and bills so that the same fiasco is not repeated. And here are some unsolicited, practical ideas to the government to help push path breaking but contentious reform bills:

  1. Say No to Ordinance: The word “Ordinance” immediately raises the antenna of the opposition and commentators in civil society who deride anything that is an ordinance. Even if it’s a legitimate cause, pushing it through the ordinance route, unnecessarily gives it a colour of conspiracy.  If the Government opted for the Ordinance route to save time, then it is ill intentioned. In India, in matters of reforms, we are used to passing laws after 10 years of debates and discussions. So, trying to cut a few months of time by opting for the ordinance route is not worthwhile. And as we have seen in the Land acquisition bill and now in the farm laws, ordinance route has not helped at all. Considering the fact that the government has a comfortable majority on its own in the lower house and can manage a majority in the upper house, it is wiser to table the laws in both the houses, do some discussion and pass them as laws legitimately.
  2. Roll the red carpet to “Select Committees”: Opposition parties have egos. And egos need to be massaged often. What’s the other better option for this than rolling out the red carpet to “Select Committees”? In your planning cycle for tabling a bill that is reformist in nature and which will attract the ire of the opposition, buffer in certain time for sending the bill to “Select Committees”. It is usually said that “When a government cannot commit, it committees!” I would say that even when a government is clear in its mind and can commit, it should “committee” so that the opposition feels that they have been consulted and the law has been passed after due process. Now the flip side of this is possible dilution of certain provisions which may distort the intent of the law itself as we saw in the case of the “Land Acquisition bill” which the UPA government passed.  Ultimately it has become an ineffective piece of legislation that is the reason for delays in many of the infrastructure projects that are underway. But here again, I would say that with the numbers on its side, the opinions and recommendations of the Select committees can be managed in its favour by the government and in case there are some genuine provisions that need correction, that is welcome.
  3. Head hunt key opposition leaders to be ambassadors: Most of the reforms that are being brought about by the government are long pending once that have been talked about for a long time now. So, in public domain we can always check if any key opposition leader had a favourable view on the subject. It is important to head hunt such leaders and co-opt them as ambassadors for the law by reaching out to them before the law is tabled in parliament. This will not only divide the opposition but will also help in influencing public opinion in favour of the intended reforms. For example, in the case of farm laws, it is known to all that Sharad Pawar when he was the Minister of Agriculture had talked in favour of some of the provisions in these laws. So when Pawar expressed his reservations on the farm bills, the first attempt of the ruling party leaders was to expose his hypocrisy. Instead of that, the government should have reached out to him and sought his support before the bills were tabled. He could also have been used to influence other parties and fence sitters could have been won over. This approach needs a bit of deft floor management and handling of the opposition which I feel is lacking with the Modi government presently.
  4. Cherry pick opinion leaders to influence opinion: During UPA-1, the nuclear bill which Manmohan Singh was personally championing got into rough weather when its own allies from the Left were opposing the bill tooth and nail. The principal opposition party then which was the BJP, also took an opposing view though it was NDA under Vajpayee rule that had sown the seeds for engagement with the US on the nuclear front. In a masterstroke that set the cat among the pigeons in the BJP camp, Sanjaya Baru the media advisor to Manmohan Singh then, reached out to Brajesh Mishra, who was the National Security Advisor to Vajpayee and a vocal supporter of the nuclear bill. Brajesh Mishra came out openly in the press to support the nuclear bill which took the sting out of the BJP attack in the parliament and outside. The present government can take a page out of this play book and cherry pick opinion leaders from civil society to come out in the open to support the proposed reforms. While on this I must add here that many commentators who were in some point of time votaries of the farm bills turned their back and changed their opinion just because the reforms were brought by the Modi government.  This sort of exposed the intellectual dishonesty of such commentators and this is another reason why I advocate that it is important to cherry pick and co-opt some of these commentators who can influence public opinion.
  5. Debate and Debate: I have been reading that the farm laws were passed by the Modi government without any debate or discussions with the stake holders. A lie repeated often becomes the truth. This government might not have debated the bill in the floor of the house during this regime but the subject of agri reforms and the need to reform the APMC act have been discussed and debated enough since 2000. One has to just read this finely detailed paper titled “An intellectual biography of India’s new farm laws” by Gautam Chikarmane to understand the chronology and the journey of these laws. My proposal is, for future even if the need for a reform has been discussed many times, provision a few weeks for repeating the same in the parliament in your regime. Because in India, carrying out the debate in the floor of the parliament is supreme, notwithstanding the quality and the purpose it serves.

The government has its plate full in terms of the reforms agenda in the months to come.  Opposition parties and other interested parties can and will try to follow the SOP of the farm bills in derailing these reforms in the remainder of this term of the government. Therefore it is important that hard lessons are learnt to ensure that this government under Modi is not seen just as a harbinger of “former laws”!

Pic Courtesy: Forbes India

Catching up on the Economic Agenda!

Social Media is an ongoing battlefield for the IT Cells of political parties. There, you routinely find claims and counter claims by BJP and the Congress, which get forwarded and go viral.  Among the regular updates from the BJP side, the ones which are popular are those where Narendra Modi era (Post 2014) and Manmohan Singh era (2004-2014) are compared which show how the country has progressed rapidly in the last 7 years whether it is Highways construction, Rural Electrification, Toilet construction, Clean water supply etc. etc. However, one thing on which the BJP IT cell is put on the back foot by the Congress is the Economic growth. This is a graphic which is popular among the Congress supporters and rightly so where in comparison, the Singh era shows higher average GDP growth than the Modi era, so far.

I am certain that if there is one thing Modi as a person, who likes to leave behind a legacy in whatever he does, would like to correct, it would be this. Frankly, I had high hopes from this government in its first term on its economic agenda. I thought that with a clear majority, it will pursue bold and long pending reforms with a much higher vigour than the reformist Vajpayee Government which was always bogged down by coalition pressures.  It turned out that, but for the introduction of GST (a landmark and very important reform, in my opinion) and Demonetisation (in which the costs outweighed the benefits), the 1st term was lack lustre and was more or less on “Maintenance mode” as far as pursuing a bold economic agenda was concerned.

It is my opinion that lawyers do not make good Finance ministers. P.Chidambaram, a fine lawyer, who is regarded as one of the most reformist Finance ministers the country had, always use to come up with one nit picking thing in his every budget, which cast a dark shadow on all the other good reforms he came up with. We all know what happened with Pranab Mukherjee, another Finance minister with a legal background. His retrospective taxation idea much against the wishes of even the economist Prime Minister Singh, punctured the “India Story” then and our economy went into a tailspin. So, that’s what happened with the Modi Sarkar in its first term. Arun Jaitley, another fine legal eagle was picked as the finance minister but, even during his regime the retrospective taxation was not rolled back! With no much economic traction, the 1st term of Modi ended on a disappointing low economic growth path.

In 2019, when Nirmala Sitharaman was made the Finance minister in a very surprise move (not Piyush Goyal who was touted as the favourite), expectations were quite low. But, I had mentioned that time, that she could surprise the critics at the end of the day. I felt that considering her background and her studious nature, she can be expected to meticulously follow the agenda as laid out in the manifesto. Not just that, but also follow through methodically in terms of execution.  You can see that this is what is happening now.  In her 1st budget in 2019, when corporate taxes were cut – a bold economic move to boost private investments and sentiment, it appeared that the Modi Government in its second term had got its intentions right in pursuing its economic agenda to boost growth which faltered in the 1st term.

 

The pandemic though, which hit all economies hard including India in Feb/Mar 2020 put a spoke all further bold moves. Economic management during a pandemic is a double edged sword. The government needs to focus on lives on one hand and livelihood on the other and that too when its income is crippled.  But, I thought that the team managing the economy in this government weathered the Covid storm very well and managed to tide over the crisis very well, under the circumstances.

In the midst of the pandemic last year and perhaps even now, top economists of the likes of Dr. Abhijit Banerjee, Dr. Raghuram Rajan and Dr. Kaushik Basu have been of the opinion that the Central government should not worry about fiscal deficit, agency ratings and all. Among other things like increased spending on health, they maintained that it should just do cash transfers through DBT mode to the needy. However, the government took a more cautious and calibrated approach of support by providing free ration to the needy, extending loan support to businesses etc. instead of cash transfers.  This has been a clash of ideas between the economists in the government and economists commentating from outside.  Frankly, I felt that what our government did is a better approach for a country like India.

Unlike the West, in India, people are more conservative financially. So, when a person gets free cash during a pandemic his first instincts will be to save it for spending on essential goods rather than on non-essential stuff to boost demand. Secondly, thanks to the lock down, there were supply restrictions. It is not logical that people will spend money just because they have been provided with cash support. So, the Government’s calibrated approach of providing free rations to the needy serves the purpose of protecting livelihoods during the pandemic. The salaried upper middle class and above were anyway not so affected as they were getting the salaries and even they spent only on essential stuff basically due to lockdown restrictions. So, the argument that Direct cash transfer would have boosted demand in the times of a pandemic doesn’t seem logical at all.  If not all, a few economists like Swaminathan Aiyar finally admitted that this approach worked better for India.

It is in this context of understanding the thought process of this government on handling economic issues during the pandemic that I bumped on this video. In this speech, Sanjeev Sanyal, Economist and Principal Adviser in the Ministry of Finance, articulates brilliantly the approach of the government in managing the pandemic from an economic stand point. If you haven’t watched it, please do so.  It answers quite a few questions which are routinely thrown at this government at the way it has been responding to the pandemic.  Its clear from the speech that there is a “method” in the thinking of the government while there is “madness” in the newsrooms that feed us information.  I wish that the government articulates the thinking behind their decisions more regularly for the benefit of all.

Now if you see the last few months, it is clear that the government is dead serious in reviving the economic growth. Some of the decisions since March have been bold and commendable. The rolling back finally of the retrospective taxation is one.  The Asset Monetisation program is another.  Taking a call to relieve the stress on the balance sheets of the banks by forming a “Bad Bank” is also another one.  Again, addressing sector specific long pending issues like in Telecom is yet another.  So, there has been a slew of bold decisions recently that gives a hope that in this term, with the pandemic hopefully behind us, the Modi Sarkar is pushing aggressively on its economic agenda.

As an economy, I believe we are at an interesting and crucial point. The pandemic is ebbing (or so we believe). Vaccination is progressing at a rapid pace. Economic activity is getting back to normal. These should bring the economy soon to pre-Covid levels. Now, if the bold reforms that have been unleashed this year has the desired effect, the growth only can be higher from here. For the Modi Sarkar which is finally catching up on the economic agenda, it will be a lasting legacy to demonstrate a higher average economic growth than the Singh era. And for the IT cell of the ruling party, few memes less to counter!

Wanted – Reforms on “Kaizen” Mode!

In the last few days, newspapers and online portals have been filled with nostalgic Op-Ed pieces on how the 1991 reforms happened as we celebrate 30 years of the reforms. These pieces by some of them who were part of “reforms team” then and other commentators often talk about the circumstances in which the reforms were unleashed, how the then Prime Minister Narasimha Rao weathered the political storm in taking some bold steps and how the then Finance minister Manmohan Singh and his team went about implementing them finally.

Yes, the “1991 reforms” was a significant event in our post Independent political history and in terms of impact on the ground, probably the most significant. Though it was not realised then, the reforms package helped to change gears of the country which was stuttering at a modest pace of growth all along, while the rest of the world was galloping.  It also helped lift millions of Indians out of poverty in the next 20 years.  So, it is apt that we give due recognition to the process and the people behind it and celebrate with much enthusiasm.

As a country, we are in a phase where we need the next reforms momentum. One that will define our growth trajectory for the next 30 years. In that sense, we need to now move on from living in past glory of what the 1991 reforms delivered and initiate the next cycle of reforms. So, what could they be? A reform is defined as a change brought in an existing system to make it better. Therefore there are reforms that result in incremental changes, thereby incremental benefits and there are reforms that are big which result in monumental changes and thereby impact. 1991 reforms can be grouped in the latter category.

 In the last 20 years, since the Vajpayee regime till now, it’s not that there have not been reforms of the big impact category in our country. But they have been few and far between. In the issue of reforms, I would like to see the glass as half empty. What we need is the next bust of reforms one shot that will change the course of our country forever and for the better. And if at all there is an opportune ‘muhurat’ for the same, it is this. Because when we come out of Covid hopefully very soon, we need to not just recoup the lost two years but get back to an irreversible high growth trajectory.  And for that, we need a whole set of big bang reforms that need to be unleashed ASAP. And I will group them in the following critical areas:

  1. Ease Of Doing Business: While we continue to say that we have improved our ranking on the Ease Of Doing Business front from before, those of us on the ground very well know that India continues to be a complex country to do business in and with. And the issue of “Central” subjects and “State” subjects adds complexity to the whole thing.  To put this in perspective, we have 1536 Acts, 69233 Compliances and 6618 filings to comply with for our businesses in our present regulatory environment.  There have been bits and pieces effort in states to remove/amend rules and regulations in the last few years. But these are just incremental changes and do not move the dial. What we need is a complete review of the existing rules and regulations across all states that include Central laws and state laws and a wholesale repeal of all the frivolous ones.
  1. Labour: This is connected to the “Ease Of Doing Business” but has scope beyond that as well in terms of ensuring competitiveness and achieving productivity as well. A paper I read on Labour Reforms mentioned that labour laws in India constitute 30% in terms of acts and 47% in terms of compliances in our regulatory framework! In terms of numbers, it is 463 labour Acts, 32542 labour Compliances and 3048 labour filings! Not that the existing regulatory environment has benefited the labour so far. The current labour laws cover only 9% of India’s employee base! So, there is an express need for simplified labour laws that will help the industry to grow while remaining competitive, will be fair to the employees while empowering them while bringing a majority of the labour force in its ambit.
  1. Infrastructure: It is undisputable that the general infrastructure in India has grown leaps and bounds in the last 20 years. There are two ways of looking at this. If we compare with where we were in the past, then of course, things are certainly better. If we look outwards and compare with our peers, then we will realise that we have still a long way to go in basic infrastructure. It is also a fact that with respect to infrastructure we are always in a perennial “catch up” and “Work in Progress” mode. And I will explain this with an example. In 2005, in the Nagoya city of Japan, a new airport was thrown open just to coincide with the World Expo that happened in that city. When I visited Nagoya in that year, I was appalled to find the new airport almost empty though, it was witnessing almost 4-5 times the normal traffic on account of the Expo. Compared to the old airport, the new one was huge and I was told then that this airport was now built forecasting for next 30 years of traffic growth so that they don’t have to meddle with this for a long time. Now, this is the approach required for infrastructure projects. However in India, we build projects based on today’s situation and by the time the project is completed, it is already bursting at its seams. The new Bengaluru Airport is an example of this. Inaugurated in 2008, it had to launch its expansion by 2011 within just three years! Most of our highway projects are planned like this. That’s why I say that the grudge towards the bullet train project in India based on today’s situation is ill informed. By now, we should have kicked off at least eight bullet train projects, not one.  Unlike in the past, financing for infrastructure projects is no longer a concern. There are global multi-lateral agencies backed by developed countries willing and waiting to fund viable infrastructure projects in a country like in India which offers potential and returns.  In the area of Infrastructure, we need drastic reforms in our planning method and execution. And that brings me to the next critical area.
  1. Land: Most of our infrastructure projects get stuck or go through inordinate delays due to the issue of land availability aka land acquisition. This is an indeed complex issue but we need to study best practices in other developing nations and come up with a new method that is fair to all and makes the process easy and less time consuming. The present Land Acquisition bill in its form needs urgent reform.

There are other areas too where reforms are the need of the hour and I will continue with those in Part – 2 of my blog next week.  But my focus remain on areas related to economic growth. To part conclude this piece, I would like to say that “Reforms” are a continuous process. And so continuous improvement of what we do is required. Going back to the Japanese way, they call it the “Kaizen” approach in management.  In India, we need Reforms on “Kaizen mode”!

To be continued.

 

30 Years of “1991”!

As I was wondering what to write on this week, I realised that in a few days, half of this year 2021 will be over.  Back in January, everyone thought or rather hoped that we were all done with the “New normal” and soon one will get back to the “Old Normal” in more ways than one. Till March, we were coasting on towards that. Then came the dreaded 2nd wave leaving us literally gasping for breath. And in no time we are back to hoping to see the end of this year.  Just the feeling we had the same time, last year.

And probably 30 years ago in the year 1991.  If 2021 has been a tough year for those who are running the country, I reckon 1991 would also have been so and for a variety of reasons.  When the history of post independent India is written, the year 1991 would feature prominently. Today, the year is associated with the unleashing of economic reforms and liberalisation in India and being crowned as the ‘Year that changed India”. But it has got so many other associations to it, which is what I thought I will write about, when we are in the midst of “30 Years of 1991”!

As 1991 dawned, I was in my 2nd year of MBA course in Bombay. Just as the year commenced, we were witness to the 1st televised war in the Gulf when US attacked Iraq to liberate Kuwait in “Operation Desert Storm”. In India, cable TV was still in its infancy. But we could watch some visuals of the war in “The World This Week” programme which made New Delhi Television (NDTV now) and Dr. Prannoy Roy household names in English speaking households in India.  I must add here that those days as young students we had tremendous appetite for news and current affairs which is seemingly missing in the current generation. Oh yes, that law of diminishing marginal utility! When News is a plenty all around, it finds lesser and lesser interest.

And it was during this war in 1991, that India probably removed its veil of Non Alignment, when the then government under Prime Minister Chandra Shekhar allowed re-fuelling of US Aircrafts in India. The decision had to be soon reversed under immense political pressure eventually in particular from the Rajiv Gandhi led Congress which was supporting the Chandra Shekhar government from outside. Though the war happened in the Gulf, it had its own implications for India as a country. Oil prices sky rocketed pushing the imports bill to hit the roof and plunging the economy into a deeper crisis. And we had a humanitarian crisis to deal with as the Gulf was home to millions of Indians.

In May, I was back in Madras after completion of the course and preparing to return to Bombay after a short break. On the 21st May, 1991, Rajiv Gandhi was assassinated in Sriperumpudur near Madras by a suicide bomber at an election rally. The death of Rajiv Gandhi that too in that most tragic manner shook the nation. Rajiv Gandhi was all set to return as the Prime Minister with the Congress getting a comfortable lead. But his untimely death put the country again in chaos and when the results came, Congress became the single largest party but short of majority on its own.

It is difficult to speculate as to what would have happened to our country had Rajiv not been killed and had he returned as the Prime Minister. It was widely believed that having learnt his lessons from his first stint, Rajiv was a wiser man and with his youth, energy and impatience would have changed the course of the country for the better.

With the loss of Rajiv, P.V.Narasimha Rao became the Prime Minister heading a Congress led coalition government. He made Dr. Manmohan Singh his finance minister and between them unleashed a slew of economic reforms that liberalised India. Those were eventful days and day after day, headline grabbing announcements followed.  Dramatic devaluation of the rupee, pledging of the country’s Gold reserves, announcement of the New Trade policy, announcement of the New Industrial policy that would end the licence-permit Raj,  the historic Budget presentation and so on. When all these were happening, one didn’t realise that these will forever change the destiny of India.

Unlike now, when economists and policy experts are in unison singing the praise of the 1991 reforms, back then the reforms were always projected as “Acts in Duress”.  Even among the ruling Congress, there was no consensus on the reforms forcing Dr. Singh to make that famous quote that he walked around with his resignation letter in his pocket.

Elsewhere in the same year, the dissolution of the Great Soviet Union was in rapid progress and by December the entire Soviet Union was formally dissolved that eventually ended the Cold War.  Google also tells me that the World Wide Web was launched to the public in 1991 and Microsoft.com went online, though I have no recollection of these!

Coming back to India, not to be limited to financial problems, in the same year 1991, on June 28th, Kashmiri militants kidnapped the then Executive Director of IOC, Mr. Doraiswamy. He was finally released after a couple of months in exchange of a few militants. I remember this vividly as day after day front page in the newspapers were occupied with this news.

For India, not just 1991 but the next two years were indeed full of challenges that wrecked the country pushing it from one crisis to another.  So, looking back, as a country we came out of all that relatively unscathed as we kept growing to what we are today, though the pace and extent of growth may not be our liking.

30 years hence, in 2021, as a country we have been inflicted hard by a global pandemic that has been hogging everyone’s attention. Our economy has been bruised badly. Lives have been lost and still counting.  Clearly not just India, but globally we have been set back by couple of years if not more.

As we come out of the 2nd wave, a recovery is imminent but not without the potential danger of further waves. We can only hope that this time also we will follow the 1991 cycle.  If you remember, the economy fared poorly in the 1st year of the reform (1991-92) but from 1993-94 after two years, the economy was on a roll.

Going back to 1991, personally for me that was the year when I started my professional career and so along with the country, the year has a personal significance and it will be always etched in my memory.  Where were you in 1991 and what are your memories of that year? Do share in the comments section.

Budget -21, Reform push and Time to Market!

There have been budgets in the past which have sort of quickly moved away from the headlines. And there have been budgets which remained in the headlines but for all wrong reasons. This year’s budget, incidentally the 8th one from the Modi Sarkar presented by Nirmala Sitharaman has managed to hog the limelight for all the “right” reasons. The pun here is well intended.

Talking of the reaction to this government’s previous budgets, it’s always been muted and for obvious reasons. Ever since Narendra Modi became the Prime Minister way back in 2014 that too with a clear majority, the expectation has been that he will bite the bullet on many of the much needed, long pending reforms. Honestly, the previous budgets of the Modi Sarkar were mostly incremental budgets with some increased allocations here, some improved programs there and so on. “What’s the Big Idea”? ‘Where are the Big bang reforms?” were some questions hurled by the commentariat post every budget. It has been my observation that under Modi, the budgets have just become an annual statement of allocations and outlays while Big Ideas whether it was the Swachh Bharat Abhiyan or the Ujjwala Yojana et al were launched outside of the budget. But in this year’s budget, there has been a welcome change to announcing some “Big Ideas”.

The positive vibes around this year’s budget can be attributed to the announcement of few big ideas which have been reformist in nature, while keeping the budget free of any “bad news”. One is the announcement of the setting up of an Asset Reconstruction Company (ARC) which is a euphemism for a “Bad Bank”. Second, is the statement of intent on “privatisation” of two Public Sector Undertaking Banks and one General Insurance company. So far, governments have been taking umbrage under the term – Disinvestment without putting out the word “Privatisation” so openly.

Not just the budget, but the announcement has been followed up by speeches in the parliament and other forums by those who matter in the government, on the seriousness of the intent. In fact, as per news reports, Niti Aayog has recommended to cut the number of state owned Public Sector Undertakings (PSUs) to just 24 from over 300 that exist today. If this programme takes off, it will make Modi a reformist of “Thatcherian” proportions. If you recall, Margaret Thatcher way back in 1979, on assuming power systematically embarked on a reform program to revive the British economy. She deregulated markets, cut tax rates, removed exchange controls and consigned militant trade unions to oblivion. But, it is the privatisation of State owned corporations like British Steel, British Petroleum, British Telecom and British Airways that stays as her enduring legacy till today. So, what Thatcher achieved in the early 80’s in the United Kingdom is what Modi is embarking to do in India after forty years. That brings to the next point of this post which is the important piece of “Time to Market”.

In business, Time to Market is nothing but the time taken by a company to launch a product or a service from the date of firming up on an idea.  For companies, this is an important issue in new product introductions.  In businesses that are highly competitive or for that matter any business, you cannot afford to have a long Time to Market.  That would run the risk of your competitor getting ahead or consumer preferences changing that makes the idea less relevant or even redundant.  I believe that even in the matter of reforms for a government, a short Time to Market is critical. And as a country, our track record on that front is unenviable so far.

In the context of reform push, I believe there are three stages namely – Idea, Intent and Implementation. First, the idea is just floated in a budget speech or on important occasion/forum. Then the Intent is demonstrated when the idea is given a proper shape, laws are formulated if there is a need and resources are allocated.  Implementation is when finally the reform becomes a reality and is rolled out. So, in India if you see the history of Time to Market on important reforms, it doesn’t pose a pretty picture.

For example, take the case of a reform like Aadhaar. The idea and need for a unique citizens identity card was floated way back in 2001 by an Empanelled Group Of Ministers (EGOM) chaired by the then Home Minister L.K. Advani during the Vajpayee led NDA regime. It was only in 2009, when the intent was demonstrated by the UPA government led by Manmohan Singh with the announcement in the budget and then following it up with the set up if UIDAI (Unique Identification Authority of India) under the leadership of Nandan Nilekani. And finally, the first Aadhaar card was issued to a citizen in September 2010. So, from the idea to the launch it took a good 9 years. In the case of GST, from the time of the floating of the idea way back in 2000 to showing the intent in the budget in year 2005 to finally launching GST in India in 2017, it took seventeen years.

In the case of the policy of allowing 100% Foreign Direct Investment in retail however, from the stage of the Idea to Intent to Implementation, the landscape of retail has changed. India doesn’t still allow 100% FDI in multi brand retail. This was seen as an important reform in attracting FDI and employment generation a decade ago. But now with the advent of E-Commerce where 100% FDI is allowed in the marketplace model, 100% FDI in Multi-brand retail is no longer seen as a constraint. In other developing countries like Thailand foreign direct investment in retail gave a huge boost to the economy. But India missed that boom because of the dogma around FDI in multi brand retail which stretched the Time to Market on that reform.

Ergo my point is, if the reforms which have been announced in this budget have to make an impact, short Time to Market is critical. Having floated the Idea of a Bad Bank, it is important to follow up quickly with the formation of the ARC and eventually roll it out within this year itself so that the PSU banks can be freed of the stressed loans and they can get back to lending with more ease. Similarly, in the case of privatisation of PSU Banks, the idea has been floating for a while now. But this is the first time, the government has expressed its formal intent via the budget speech. The road to privatisation is not going to be easy at all with trade unions already gearing to pick up the gauntlet with the government. I though believe just as the mass VRS issue in PSUs like MTNL and BSNL etc. went through in spite of stiff resistance from trade unions, this time, the government may be able to pull it off with a few hiccups. Or so I hope.  Also, while the stock markets are on a high this year, the government can manage to get better valuations.

In the run up to the 2014 Lok Sabha elections, Modi repeatedly talked of “Less Government, More Governance” and “Government has no business to be in business” – thoughts which signalled a clear Rightward tilt on the economic philosophy front. However, till this budget speech, we didn’t see much of action towards withdrawing the government from running many businesses. This budget from that sense is critical in signalling the government’s intent towards moving away from running inconsequential businesses, which is a good sign. And, if the intent is translated into action in a reasonably short Time to Market, then it will be Narendra Modi’s lasting legacy in changing the economic course of this country.

Post Script: If Aandolanjivis are those who make a living out of protests, what about taxing them? And what would be the Time to Market for this idea? 😁

The Mandi Vs Modi battle!

As a country, I believe that we are cursed to contend with one distraction after another, which keep our governments busy. If it was the Anti-CAA protests which were grabbing the headlines during winter last year, it is the farmers’ protests against the Modi Sarkar’s farm bills this winter. And in between, we have the Covid and its numbers to be pre-occupied with, still.

In the last few weeks, ever since the farmer’s agitation picked up steam, there have been many op-ed pieces from erudite authors which have by and large spoken in favour of the farm bills. And they have said that this is the 1991 moment for Indian agriculture. And yet, the farmers associations have stood their ground against these reforms. Irony dies when we see articles with pictures now of farmer protests in the past demanding the same reforms!

The opposition has joined ranks with the protestors in trying to push back the Modi government on the farm bills. And it has been pointed to us that many of the opposition parties including the Congress, which is now siding with the farmers in opposing the farm bills, have been votaries of the same proposals in the past. It is clear now that since the opposition cannot take on the government on the floor of the house, its strategy is to take on the government on the streets.

While there have been many pieces exposing the double speak of the parties, I would recommend all to read just this one authored by Gautam Chikermane for the ORF – “An intellectual biography of India’s new farm laws”. Read here:

This piece chronicles the various studies and reports tabled by expert committees under different governments’ right from the year 2000 and invariably the recommendations are similar to the very reforms the present farm bills have brought in. It thereby exposes the intellectual hypocrisy of not just the politicians, which to a large extent we have learnt to live with, but of the commentariat which is not coming out and expressing its views in favour of the farm bills strongly, though it was in favour of the same before.

As you can see in the said article, there has been a rare consensus among economists and domain experts on the issue of reforming the APMC Act and Essential Commodities Act. Therefore, it is a pity that we are seeing such virulent, stubborn opposition to the reforms from one section of the farmers’ universe.

In the past five years, I have consistently observed that the commentariat in India keeps shifting goal posts as per its whims and fancies.  In the beginning of the 1st term of Modi, the narrative was “Where are the big bang reforms?” When the Modi government started bringing in reforms it became, “Where is the consensus in bringing these reforms? Where is the consultation?” When reforms are brought in after consultation and building a consensus as in the case of GST, the narrative is, “Where is the execution?” So, clearly we are seeing a pattern of opposition for the heck of it irrespective of the merits of the case.

In the case of farm bills too, there are those who have been saying that there has been no consultation. It is clear as broad day light in the article that, there have been consultations with stake holders for 20 years now! I believe that the government must reach out to many of these experts who were in favour of these bills during UPA regime and enlist them to express their support for the reforms they were batting for in the past. This could include people like Montek Singh Ahluwalia, M.S. Swaminathan and the likes. Here, it could take a leaf out of UPA-1 rule when Sanjaya Baru, the then Press advisor to Manmohan Singh, reached out to Brijesh Mishra enlisting his support for the nuclear deal when BJP was opposing it tooth and nail. The Civil Nuclear deal discussions with the US started when Atal Bihari Vajpayee was the Prime Minister during the NDA rule. So, having an Ex-National Security Advisor to talk in favour of the nuclear deal when BJP was opposing the same, sort of punctured the opposition narrative.

Again coming back to the point of introducing the reforms after extensive consultations across the board, our experience has not been very good. During UPA, the land acquisition bill was brought in after extensive consultations and after building a broad consensus. The result is there for all to see. The bill never took off. It is a classic case of the operation being called successful while the patient was dead. The Modi government in the very 1st year wanted to fix this and brought in amendments which never went through. Finally, in the absence of a consensus, the amendments were not made and the bill continues to languish without serving the purpose of its existence.

Much of the infrastructure projects announced by the Modi Government are behind schedule or languishing in spite of having a very enterprising and well-meaning Nitin Gadkari as the minister at the helm. The main reason has been the delay in land acquisition essentially because of the rigorous clauses built in the bill that was brought in with a broad consensus.  So, any bill just because it is brought in with a lot of consultations and a broad consensus need not be the ideal bill.

In the parliament, the idea of consultations and building consensus effectively means putting the draft of the bills or amendments through select committees or standing committees. To borrow the words of HDFC Chairman, Deepak Parekh, “In India, when the government cannot commit, it committees!” Which effectively means extended discussions and delays. At the peak of UPA rule, when most of India wanted a decisive government with a majority on its own, it was precisely for these reasons. So, when Modi Sarkar which has now won a decisive mandate on its own twice over, takes the route of avoiding these long winded committees and brings in changes in laws on issues like the farm bills where discussions have been going on for 20 years now, we shouldn’t complain.

Building a consensus is often overrated and I concur with the latest statement by Niti Aayog Chairman Amitabh Kant that in India, we suffer from “too much” democracy. I sincerely hope that the government sticks to the main proposals and not roll back on the essence of the farm bills. In the meantime, it should use its communication firepower led by more amenable ministers like Gadkari to get the message across to the farmers’ associations and get them to pull back.  The Mandi Vs Modi battle is clearly a distraction for us at this time when the government must be focussed on handling the economic mandi (slump) on a war footing to bring the growth back on track.

Post script: The title for this post is courtesy my good friend Gopal Kutty Sasthri who popped this up during one of our chats on the topic and so due thanks to him.

The “Singhamisation” of police!

If the alleged gang rape and subsequent murder of a young girl in Hathras, UP was not terrible enough, the post death handling of the situation by the UP Police was even more horrendous. It is still bewildering, that someone suggested or ordered a midnight funeral for a murdered victim by the police instead of handing over the body to the parents! 

If that was in Hathras, UP, can anyone forget what happened in Sathankulam in Tamil Nadu, few months ago? In a bizarre case, a father and son duo were beaten to death under custody in Sathankulam police station. For what? For apparently violating lockdown rules!

Last year, in Hyderabad, the police killed the suspects involved in rape and killing of a vet in an early morning encounter which seemed like a scene lifted straight out of a Rohit Shetty (Hindi) or a Hari (Tamil/Telugu) film!

Add to this, the Sushant Singh Rajput case which was hogging media headlines till recently where the police of one state has been in logger heads with another.

Welcome to Singhamisation of Indian police. What is common in all these and more is the crying need for police reforms in India, a long neglected issue by any government of the day.

In our country, the commentariat often talks of the demand for reforms of all types – Economic reforms, labour reforms, judicial reforms, education reforms and so on. But seldom do we get to see the demand of police reforms in the same intensity. And I have always wondered why. As per a data point, roughly 9% of GDP is lost every year on account of poor law and order!  And if you remember, GST as a tax reform was introduced because it was believed that it will improve the GDP by up to 3%! And here we are talking about three times that!

In India, maintenance of law and order hangs in between the clichés of “Law and Order is a State subject” and “Law will take its own course”!  Law and Order which is one of the deliverables of the police is a state subject. States are run not just by ruling party at the centre. Few states are under the main opposition party, few by smaller opposition parties and many are ruled by regional parties. This situation exists at any given point in time. So, every party worth its salt has a stake in maintaining law and order and therefore interest in keeping the police under its thumbs.

I really don’t know when the last time a government seriously intended to initiate police reforms in the country. Even the Supreme Court directive of implementing the Prakash Singh recommendations in Prakash Singh Vs Union of India case in 2006 I believe has not been heeded to. The fact is no Indian state has fully complied with the recommendations. In irony we can say that police reforms is one subject in which all political parties are on the same page!

I believe that the cornerstone of any police reform needs to be “Independence” and “no Interference”. Unfortunately, the institution of police has been used by the ruling class as an instrument of exercising power and control. So much so that in any government the Home Minister, under whom law and order and therefore the police comes, becomes the De facto No. 2. Not the finance minister or the minister holding any other economic portfolio.  The big question is, will any party coming to power would ever give up on keeping the police under their thumb? If our armed forces can be reasonably independent though reporting to a civilian government, why not the police?

The next key focus in police reforms I believe, must be around recruitment, training and compensation. We must not forget that people in the police force have not been dropped from heaven. They are all from the same society as we are. And they read the same WhatsApp forwards as we do. So their world view is shaped and influenced in the same manner as ordinary people. And hence they have their own biases. We saw how this kind of biases come in the way of effective policing even in a developed and mature society like America.  I am talking about the death of George Floyd in Minneapolis when a police man was kneeling on Floyd’s neck for nine minutes even when Floyd was pleading for his life. The key is proper recruitment and training where one’s personal biases do not come in the way while discharging public duty.

Though policing is a highly stressful and high pressure job in India, the police are inadequately compensated. And that’s a major reason for not being able to attract bright people to join the force.  Adequate and attractive compensation will also reduce the menace of corruption that exists even at low levels. So, the combination of reformed recruitment, proper training and attractive remuneration will go a long way in the police discharging their duties in a more professional way.

Coming back to Singhamisation of police, whether films depict life or life follows films is an unending debate. The reality could be a mix of both. If you see Indian films, there was a time long ago, when they usually featured bumbling cops who will reach the scene at the end when everything was over. Then there was a phase where cops were usually of the corrupt variety who will be siding the villains.  Presently it is the Singham era, where cops are this macho super heroes and “Naan Police illa, porukki” types. They deliver justice in their own way and if that means taking law in their own hands, so be it.

And this is what we see in real life as well which is what I call the Singhamisation of the police. Incidentally, the common man in the street who is just interested in timely delivery of justice and not necessarily in the method, loves this. But the point is, if we have to prevent another Hathras or a Sathankulam, police reforms is the need of the hour and not Singhamisation.

Incidentally, Prime Minister Narendra Modi while addressing a bunch of IPS probationers recently, told them not to be influenced by films like Singham. After having initiated bold reforms in agriculture and labour, the time has come for Modi to take up police reforms as well. Then he doesn’t have to worry about Singhamisation of police!

NEP 2020 – Not a T20 in the making!

Two weeks ago, when I wrote a post that “Marks do matter”, I didn’t realise that a New Educational Policy (NEP) was soon going to be unveiled. The post was purely for the season.  If you haven’t read it, please read here. There was an overwhelming response to the blog with many readers agreeing to my proposition that, in the present scheme of things in India at least, marks do matter. I also understood that it is rather a grudging acknowledgement under the circumstances and not a wholehearted endorsement with glee. Most of us, having been on the rough end of the mark stick some time or the other in our lives, have been yearning for a different system of evaluation for the longest time.

Ergo, when the NEP was announced by the government last week, my primary interest was to see how it handles the “marks” conundrum. NEP has been in the works for a long while. I am aware that even among the sympathisers of BJP and Narendra Modi, there was a tinge of regret and disappointment about the government not making any progress on the education front during its first term. Frankly, I haven’t read the full policy document and have just read the highlights few times over. It is quite technical and without the domain knowledge, I haven’t managed to fully comprehend the implications of some of the proposals in the long term. But from what I read, see and hear, seems it is a well-intentioned policy framework and if followed through with meticulous execution, our country may be a different place in the next two to three decades.

Having said that, I would like to focus on few issues which bother me as far as education system in India is concerned and how this NEP tackles them. First, the issue of many education boards.

“Your daughter is in which class?

6th Std.

Which board?

CBSE. What about your son?”

This conversation must be very familiar to many. The latest class divide in urban/semi urban middle class society these days is manifested in the board of the schools in which children study. In the 70’s and 80’s, when I was growing up, this was not a talking point at all. Most of us were going to schools affiliated to State board with some going to CBSE board schools. However, post liberalisation and rise of aspirations and income levels in general, there is a clamour to put children in schools which are not State board schools. So, while CBSE and ICSE board schools are the ones which are sought after, the newest craze in town are the IB (International Board) schools. I am aware of the scorn State board students are subjected to, when they go for higher studies. The question is “Do we need different boards” that sow the seeds of a divide and discrimination in the society. Is there a case for a country wide uniform system of education whereby all students go through the same system without differentiation?

This is a tricky question to answer. At the outset, it may seem that the answer is obvious i.e. to have a uniform system that doesn’t differentiate and doesn’t end up discriminating students. In Japan, the Japanese rue the very standardised and uniform education system they have in their country. One of my Japanese friends use to say that their schools and colleges were like assembly lines. The output in terms of specifications are exactly similar because of which there is no diversity of thinking or ideas in Japan. So, the answer I believe is not in just one common board which has a standardised syllabus across the country. But continuing the existing system of different boards with a wide gap in standards and levels may not be the answer as well.

I looked at the NEP for its take on the boards. Education being in the concurrent list, first of all there cannot be a single National umbrella structure that can be implemented across the country. So, the NEP talks about the need for each board to ensure equivalence of academic standards and text books with a common core material and supplementing with local flavour and context and so on. I believe it is a via media solution to retain diversity with some commonality. In addition to this, one key point according to me, is the compensation of teachers and staff in State board schools. In order to ensure there is no discrimination in output (quality of students), there should not be discrimination in input (salary levels of staff).

The second issue is regarding the medium of instruction in schools. The NEP proposes that the medium of instruction until 5th standard and preferably till 8th standard and beyond will be preferably home language/Mother tongue/local language. It was later clarified that it is not a mandate but is left to the states to imbibe this guideline. English medium Vs regional language in today’s aspirational India is again a symbol of class divide in the society. In one of my earlier posts (Read here) I had argued that it is time to make English the common medium of language across the country. English may be a foreign language but it is the unifying language in India today. Like it or not, English has become the door opener for opportunities. While I agree that it is good to ensure a child’s proficiency with her mother tongue, making it the medium of instruction may be counterproductive.

And lastly, coming back to the “Marks system”, the NEP doesn’t seem to provide any alternatives but for changing the grading system so that the final board exam is not a make or break effort for the student. It says, “Board exams will be made easier, as they will test primarily core capacities, competencies rather than months of coaching or memorization.” It also talks about a more comprehensive and multi-dimensional approach to student assessments.  This is very good in intent and I think all parents and children would be keen to see how this works in real life.

Based on what I have comprehended so far, the New Education Policy signals a clear intent to bring in a paradigm shift in education in India.  It aims for a long term directional shift and so is a test match and not a T20 in the making!  Now, the devil is in the execution.

Pic credits: The Hindu