Beyond Mr Modi

Kick-starting a weak economy has been priority number one for the NDA government since it took office in May this year. After six months of trying on many fronts, it has still to deliver growth on the ground. A few industrialists have been whispering that they don’t see the promised light at the end of the tunnel. Against this backdrop, news that Prime Minister Narendra Modi is now going to take direct charge of the project monitoring group (PMG) should impart fresh energy to the task of reviving the economy. This group was set up earlier in the Cabinet Secretariat towards the last stages of the UPA regime, to have a direct control over many last mile projects. The idea was to track stalled projects and remove bottlenecks in large projects with an investment of at least ₹1,000 crore.

Presently there are about ₹18 lakh crore worth of such projects stuck at various stages. It has been acknowledged that economic growth cannot be achieved without untangling the mess in coal, power and mining. One hopes Modi will bring his much-touted efficiency and cut the Gordian knot that has hitherto stymied revival attempts in these sectors. The economy is expected to grow 5.5 per cent this year, which, although better than last year, is still below par for the country. It is imperative, therefore, that every step be taken to push for faster growth and the PMG’s initiative can ensure that low hanging fruit are plucked quickly. The Prime Minister has promised bureaucrats a free hand and asked them to be bold, offering to protect those who may make bona fide mistakes. The weak economic data announced recently only strengthens the case for such intervention.

The Prime Minister taking direct charge is, however, a mixed blessing. There is no doubt that as part of the government’s narrative to build the persona of a decisive leader who moves mountains, it is effective. Nevertheless, it is a poor advertisement for the rest of the government and raises question about the relevance of so many ministers, ministries and lower level functionaries. Governments tend to lose focus when too much is loaded on one person — this is what happened in the UPA with its many groups of ministers (GoMs). Over-centralisation of powers and responsibilities is an ever-present danger. We need many people to work in tandem to make sustainable progress and the Centre needs to be mindful of this. Foreign investments that are crucial for a revival of economic growth, don’t come in because one person takes quick decisions, even if he happens to be the Prime Minister.

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