India’s Modi aims $5 trn economy

Indian Prime Minister Narendra Modi yesterday announced a massive 100 trillion rupees ($1.4 trillion) investment to double the size of Indian economy to $5 trillion in five years as he delivered a speech from the ramparts of the iconic Red Fort in Delhi for Indian Independence Day.

Modi said that reforms would continue to be ushered in to help India become one of the top 50 countries in ‘ease of doing business’ rankings. “To some, the target of nearly doubling the size of the Indian economy to $5 trillion in five years may seem difficult. But when we have added $1 trillion in five years, to the $2-trillion size achieved in 70 years since Independence, this target is achievable,” he said.

He referred to reforms such as the Goods and Services Tax (GST) and Insolvency and Bankruptcy Code (IBC) for aiding the growth process and said the government would invest Rs 100 trillion in building modern ports, highways, railways, airports, hospitals and educational institutions.

Jal Jeevan Mission

Modi said that the government would launch a Jal Jeevan Mission to bring piped water to households and resolved to spend more than Rs 3.5 trillion in the coming years. He said half of the country’s households did not have access to piped water. “I want to announce from the Red Fort that we will move forward with Jal Jeevan Mission.

The Centre and states will work towards it and in coming years more than Rs 3.5 trillion will be spent,” he said. Wearing a flowing bright saffron-coloured turban, Modi, who won a landslide election victory in May, also highlighted his government’s ban on the practice of allowing a husband to instantly divorce his wife.

New Chief of Defence staff

Perhaps the most important announcement in Modi’s speech was the creation of a new post of chief of defence staff, to ensure better coordination between India’s army, navy and air force, along the lines of Western military forces. Defence experts have long called for such a post, recommended by a government panel in 1999, after India came close to war with Pakistan over Kashmir. “Our forces are India’s pride,” Modi said.

“To further sharpen coordination between the forces, I want to announce a major decision ... India will have a chief of defence staff.” The prime minister said the CDS would ensure synergy among the three services and provide effective leadership to them.

Fresh thinking

Spotlighting a decision to remove the special rights of Kashmir among the bold moves of his second term, Modi said “fresh thinking” was needed after seven decades of failure to ensure harmony in the region. “We do not believe in creating problems or prolonging them. In less than 70 days of the new government, Article 370 has become history. And in both houses of parliament, two-thirds of the members supported this step,” said Modi, 68.

“Jammu-Kashmir and Ladakh will become a big inspiration for India’s growth journey, comfort, progress and peace,” he said. Ladakh is the newly carved-out union territory. “The old arrangement in Jammu, Kashmir and Ladakh encouraged corruption and nepotism, as well as injustice when it came to rights of women, children, (low-caste) Dalits, tribal communities,” he said. “Their dreams get new wings,” he said. 

Tourism ‘huge’ scope

The Prime Minister has also set his eyes on improving Indian’s tourism sector. There is a “huge” scope to improve India’s tourism sector, PM Modi said, adding that it was imperative that the country met the aspirations of its people.

Polls together

PM Modi also made a fresh pitch for holding Lok Sabha and Assembly polls together, saying the concept of ‘one nation, one election’ was imperative to make the country great. Last August, the Law Commission had recommended holding simultaneous elections to the Lok Sabha and state Assemblies to save public money. 

‘Unchecked population explosion’

Modi warned of the risks of an “unchecked population explosion” in the nation of 1.3 billion people and called for family planning measures. India is the world’s second-most populous country behind China with 1.4 billion, and its population is set to surpass its East Asian neighbour by 2024, according to the United Nations. “It is time to accept the challenges upfront... population explosion.

It will bring a lot of challenges for the future generations of this country,” Modi said in the capital New Delhi. “We have to think if we can do justice to the aspirations of our children. There is a need to have greater discussion and awareness on population explosion.” The prime minister hailed an “informed section” of Indians who were already having smaller families as “playing a big role in doing good for the country”.