NVR Swami – 
The ruling Bharatiya Janata Party (BJP) of Prime Minister Narendra Modi lay baffled, rattled and humiliated with a slump in its electoral fortunes in the eastern Indian state of Bihar last fortnight.
It emerged a poor third to the state assembly polls after a ‘Grand Alliance’ of two hefty state political leaders, Chief Minister Nitish Kumar and former Chief Minister and foe Lalu Prasad Yadav mercilessly mauled their way to victory.
Serious introspection
The BJP, which took just 53 seats in the 243 seat Assembly, went into immediate stocktaking mode with an eye to overhaul its policies and priorities.
But what is essential for Mr Modi, as observers point out, is that he should make his Party more functionally sharp and disciplined, clip the loose, irresponsible and controversial statements of Party members and engage in constructive dialogue across the board.
That positive environment so garnered will be heavy plus points for him to propel India on a new dimensional approach to ease issues at home and add glamour to diplomatic ventures.
Over-exposed in his election duty, the Prime Minister however, found time to elaborate on the economic front since he took charge on May 26, 2014.
He told an economic conclave in New Delhi, which attracted economists, policy makers and thought leaders from home and abroad, that by almost every major economic indicator India was doing better since his Party came to power.
“The reforms were far broader and far deeper than is generally recognised,” he said.
Governance highlights
According to Mr Modi, following are among the highlights of his government’s performance: (a) GDP growth is up and inflation is down (b) Foreign investment is up and the current account deficit is down (c) Revenues are up and interest rates are down; and (d) Fiscal deficit is down and the rupee is stable.
“Reform to transform is a marathon, not a sprint,” he said.
The reforms were of many shapes and hues involving financial, structural and institutional.
What the government had done since it had been in power was to bring 190 million people into the banking system. This was more than the population of many countries and words like ‘interest rates’ have lent a meaning for these millions.
“Not only have these people been brought into the system but they have shown there is great strength at the bottom of the pyramid,” he said, disclosing that their total balance was now almost US$ 4 billion.
Transformational Reforms
“Clearly, our financial inclusion reform has been transformational. And yet this quiet revolution has hardly been noticed,” Mr Modi said.
To help the under-privileged people build their lives with dignity, the government is building an environment that fostered innovation and start-ups.
According to Mr Modi, social security is undergoing a major reform, including accident insurance, life insurance and pensions. Because of their massive coverage, the premiums are low, covering more than 120 million people.
Mr Modi said that he made it a point to maintain a constant dialogue to build a strong banking system as “we have inherited a system where cronyism and corruption were reportedly rampant.”
“We have enforced efficiency and accountability. But more than that, there had been very powerful non-financial steps. Interference in banking decisions has ended. A new process for appointments was being put in place under the ‘Bank Boards Bureau.’ Credible and capable bankers have been appointed to head banks,” Mr Modi said.
In a major step, private sector professionals were put in key positions for the first time since banks were rationalised by (late Prime Minister) Indira Gandhi 46 years ago.
Poverty alleviation
The Prime Minister’s survey covered a gamut of the population including eco-system to alleviate poverty, improve agriculture, strengthen housing, remove irritants to stabilise provident fund accounts while changing jobs.
He said that his government was considering institutional and governance reforms.
For many years, economists and other experts have held corruption to be one of the main constraints on the growth of any developing economy.
“We have taken decisions to curb that,” he said.
Mr Modi said that before becoming the Prime Minister he received many inputs on reforms. Yet there was none on the issue of cleanliness and sanitation, which has languished for years as a poor cousin of poor health or drinking water supply.
It had often viewed as a question of budgets and projects and expenditure.
Mr Modi said that his ‘Clean India Campaign,’ would create a powerful sense of well-being.
“If this reforms succeeds, and I am confident it will, India would have been transformed.”
Finance minister Arun Jaitley does not believe that the poll result in Bihar would impact on the Reforms Programme.
“Structural reforms would continue at a rapid pace,” he said.
