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In Author 1, Blog, Featured, Mumbai, Rajiv K Bajaj
March 14, 2018
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Powerhouse Modi vs Feudal Opposition; the result can only be a Modi Victory

Why does India keep supporting Narendra Modi? Or should the question be why does Modi keep winning?
The fact is Modi has pushed India’s profile to the top of the world pecking order; so much so that for every major economic decision in the world India is right there in the mix!
We have unutterable nincompoops here (and some abroad) who see everything wrong in all that Modi does! And each time Modi wins (which is most of the time) the litany of excuses becomes all too predictable!
EVMs have been tampered with!
Vote has been polarised!
Minorities are being intimidated!
The fringe has been unleashed!
Indian ethos is in danger!
India is in danger!
Now what does this really mean?
It’s simple…when you lose you have to blame something or someone; so blame the EVMs whenever you lose! When you win Punjab, Bihar, Delhi, West Bengal and do spectacularly well in Gujarat EVMs are fine! When BJP gets wiped out in Tamil Nadu EVMs are again fine…!
Vote is polarised when Hindus unite (sometime along with Muslims at times) to ensure a BJP victory! In UP for instance BJP candidates won in most predominantly Muslim areas!
Minorities (read Muslims and Christians) are being intimidated! That’s the usual charge against Modi and the BJP. Apart from the 2002 riots in Gujarat, BJP ruled state have by and large been immune to major riots or anti-Minority violence! This lot that keeps abusing Modi very conveniently forgets Moradabad, Nellie, Bhiwandi, Delhi, Hashimpura, Malliana, Bhagalpur, Mumbai…thousands of Muslims and Hindus killed under Congress Rule! But that wasn’t intimidation…that’s something that happened in the natural course of things! Yes?
India is now sick and tired of these inane and facetious arguments presented by a hunch that has lost its importance and all the goodies that used to come with it!
Modi has destroyed the communal, caste and feudal equations and confrontations! The Old Caste Combinations and Confrontations no longer work with Modi!
And that’s driving the libtard legions insane!
The Modi effect is transforming India into a powerful, not to be trifled with nation; we no longer think its OK to lose!
And therein lies Modi’s greatest achievement!
India first, last and always!
Earlier whenever there was a vote or debate on Palestine (or any other Middle Easy issue) India would be the first off the blocks to condemn Israel and the Western Bloc; not anymore!
It’s simple; it’s in India’s interests to maintain good relations with both. And Modi has done what was till now believed to be impossible; both the Israelis and the Palestinians regard Modi as their best friend!
This is just one more example of the realistic, ruthless nature of the Modi Effect; “there’s nothing above the nation, and there’s nothing that we shall not do for the benefit of the nation “
How do you fight such a tidal wave of patriotic fervour, hard business sense and will to win?
Well, you wake up to the new reality first!
I am afraid the anti-Modi cohorts are still in a self induced coma, refusing to acknowledge what faces them (only Arvind Kejriwal sees the strength of the Modi Effect but he’s hated on both sides of the political fence)
That’s why BJP has moved from ruling 4 states to 21 as of last count
And there’s nothing the Non-BJP parties seem able to do except wringing their hands and screaming “FOUL” like princes who have just lost their privy purses!
Here’s what Forbes magazine says about Modi…
“With Prime Minister Narendra Modi’s state visit to Washington the last week in June, many Americans were made aware for the first time of the gregariousness of the Indian leader who took the reins in Delhi in May 2014.  But not in terms of the energy he has poured into, and the successes generated from, his initial programmatic reforms of the economy of the world’s second most populous country, indeed an economy whose growth rate has been exceeding that of China.  Rather, the conventional press headlines and photos of the visit centered on what seemed to be a frivolous big bear hug Modi gave to U.S. President Donald Trump.

“In fact, the bear hug shocked the U.S. President, ironically in the same way are people whose hands Trump initially shakes in conventional fashion but are then pulled into Trump’s clutches up close and personal. Modi gave Trump a taste of his own medicine.

And again Prime Minister Modi’s astute tactic had him dancing circles around President Trump. The Trump Administration was ready for a pushback on H1B Visa curbs. Modi ignores it completely and focuses on what could be realitistically achieved!
Here’s Forbes again…

“And, then Modi caught Trump even more off guard in their substantive discussions by deliberately not tabling at all the issue of moves by the U.S. to clamp down on H1 visas, which control the flow of Indian (and other foreign) workers for jobs with firms on U.S. soil.  Nor did Modi raise his displeasure with the U.S. administration’s backing out of the Paris global warming accord. Trump and his team—ready to pounce on Modi at his very mention of these issues— were left scratching their heads.

“In my book, it was smart for Modi to keep this White House on its toes. The starkly different positions on the H1 visa and climate change issues were well-known on both sides and nothing would have been gained by Modi to mention them in this setting. There were only downside risks.  Instead, it allowed Modi to create an environment for his non-governmental meetings with U.S. businesses and investors—usually the most important part of state visits anyhow—where the stellar performance of the Indian economy could speak for itself

“There is little question that India has experienced a high annual growth rate in real GDP during the time Modi has been in office: the country’s growth rate rose from 6.5% in 2013 to 7.9% in 2015, although growth slowed to 6.8% in 2016.  However, the IMF projects India’s GDP growth to rebound to 7.2% in 2017 and increase further to 7.7% in 2018.

“In contrast, China’s GDP growth in real terms fell from 7.8% in 2013 to 6.9% in 2015, further decreased to 6.7% in 2016, and is projected by the IMF to register an additional decline to 6.6% in 2017, and fall even further to 6.2% in 2018.

These data show why India is now regularly referred to as a faster grower than China.

“To be sure, part of India’s economic performance reflects the country benefitting from low world oil prices.  After all, India imports about 80% of its crude oil needs.  (China, which imports about 65% of its crude oil needs, also has had its growth buoyed by cheap oil.)

“But there is a higher likelihood that Modi’s reform program, and even more importantly the confidence he inspires, have been the fundamental drivers of India’s growth.  And unlike growth generated by changes in commodity prices, the types of reforms being undertaken by the Modi team are destined to make lasting, rather than transitory, changes in the structure of the Indian economy.

“For years, this is exactly what the doctor has been ordering for India. Yet few Prime Ministers before Modi were ever as cunning and effective in achieving some modicum of success at reform.

“From years of first-hand, on-the-ground experience in many countries, several examples make the

“Not only has the ascendency of Modi’s governing prowess (what The Economist would call his ‘administrator role’) and his reforms boosted India’s GDP growth, but they’ve also produced sizeable increases of inflows of foreign direct investment (FDI) to India—often seen as the ‘put-your-money-where-your-mouth-is” vote of confidence in both an economy and its policy leadership.  Here the change for India has been startling, even when compared to China.

“While in absolute terms, India’s FDI inflows in 2015 were US$44 billion and China received US$250 billion, these data are not economically meaningful unless the relative size of each economy is taken into account.  To this end, India’s FDI inflows as a share of GDP were 2.1% in 2015 and China’s were 2.3%.  As a practical matter, this is not a significant difference. (For reference, the comparable statistic for the U.S. is 2.1%).

“It is even more instructive to examine the trend in FDI inflows over time.  Over the course of the still-short Modi regime, India’s FDI inflows as a share of GDP rose 24% over 2014 and 2015, whereas for China, FDI inflows as a share of GDP actually declined by 12%.  Taking a longer view, between 2005 and 2015 (obviously a period that in part predates Modi), the differences are starker: India’s FDI inflows as a percentage of GDP more than doubled, whereas in China, they declined by 50%.  Indeed, ASEAN is becoming a more attractive foreign investment destination than China.

“The list of reforms implemented by Modi in the first three years of his five-year term is sizeable, though not huge, and of course not all of them are of equal importance.  But within the context of India’s complex political culture, marked by a true—and yes, messy—system of democracy (in stark contrast to China’s and Russia’s authoritarian regimes); the challenges imposed by governing a diverse, geographically large country of 1.3 billion people; and against the backdrop of decades of reform inertia and inaction by successive administrations in Delhi, it would be unreasonable to not be impressed with what has been accomplished to date.

*Some of the more notable reforms include:*

“a revised law on bankruptcy, which will generate freer flows of capital and the flexibility for them to be invested in their highest value in use, thus promoting a more robust, competitive Indian market both for new business start-ups as well as for forcing stale companies who cannot make ‘a go of it’ to close shop and sell their assets;

“the introduction of a nationwide sales tax, which will integrate an otherwise excessively complicated disparate system of different state and federal taxes, a reform that will not only increase tax collections but also help reduce interstate barriers to trade and distortions arising from gaming where within the country purchases should be consummated;

“elimination of subsidies for diesel fuel, which will help plug a fiscal hole in government revenues, and even more important create disincentives for using an energy source that adds to, rather than diminishes, pollution and greenhouse gases;

“removing regulations that forced companies to repetitively renew their business licenses at an artificially high frequency simply to generate revenues to be collected by local bureaucrats;

“relaxing rules that reserved specific sectors to be the province of only small and medium sized enterprises even if large firms could produce the goods or deliver the services at lower cost and create economies of scale;

“using transparent and competitive auctions for allocating access to the telecom spectrum;

“opening investment in the railway network to majority foreign ownership, thus allowing India to tap into new sources of capital to build out its infrastructure and help the country integrate into a unified economic space to create economies of scale in both manufacturing and agriculture and thus enhance its international competitiveness; and

“permitting foreign investors to participate in construction projects that otherwise were reserved for only domestic service providers, thus generating opportunities for joint ventures and other businesses to incorporate world-class construction

Why have I quoted Forbes so extensively?
That’s because Forbes was among the first western financial and business journals to be quoted by silly Liberals still rooting for the Raja Maharajas of Congress to justify their own criticism of Modi!
Modi has transformed India from the feudal caste communal strife ridden vote bank swamp into an all new powerhouse!
Will non-BJP parties be able to find the tripper switch?