As the Lok Sabha elections draw nearer, the BJP-led National Democratic Alliance (NDA) government is meticulously crafting strategies for a prospective third consecutive term in power. Prime Minister Narendra Modi, foreseeing potential continuity in governance, has instructed his Cabinet ministers to develop a comprehensive 100-day plan to implement should the government secure another term.
Central to these plans is the ambitious goal of propelling India towards becoming a USD 5 trillion economy by 2027-28 and achieving developed nation status by 2047. Additionally, there is a concerted effort to elevate India to the status of the world's third-largest economy, all of which have been recurrent themes in recent addresses by the Prime Minister.
To this end, the Finance Ministry has delineated key focus areas that would shape the trajectory of the government's actions in the event of a successful electoral outcome in May.
Outlined below are some tentative policies that could feature prominently in the initial 100-day agenda of the prospective NDA 3.0 government.
Reforming Taxation:
There is a likelihood of adjustments to income tax slabs aimed at providing relief to the common populace and expanding the scope of direct taxation. Corporate tax reforms may also be on the agenda.
Streamlining GST:
Efforts are anticipated to simplify the Goods and Services Tax (GST) regime, an oft-cited demand from the corporate sector. Collaborative endeavors with state governments to establish consensus on simplified GST rates are deemed crucial. Addressing issues surrounding GST compensation, rate adjustments, and the scope of GST coverage is also envisaged.
Expanding UPI Reach:
The Unified Payments Interface (UPI) has emerged as a pivotal instrument in transitioning toward a cashless economy and extending digital banking services, particularly to remote regions. Expanding the reach of UPI domestically and internationally is likely to be prioritized, with efforts to encourage its adoption by other countries.
Enhancing Regulatory Oversight:
To foster a conducive environment for Foreign Direct Investments (FDIs) and bolster India's attractiveness as an investment destination, stringent measures are expected to be taken against major loan defaulters. This could involve empowering enforcement agencies and enacting new legislation to curb corruption and financial malpractice.
Addressing FinTech Concerns:
In light of recent challenges faced by financial technology (FinTech) entities, concerted efforts will be made to engage with stakeholders and address regulatory issues. Finance Minister Nirmala Sitharaman has already initiated discussions with FinTech firms to address their concerns, suggesting a proactive stance towards regulatory matters.
In sum, the tentative agenda for the prospective NDA 3.0 government underscores a commitment to economic reform, digital transformation, and robust governance, signaling a proactive approach toward addressing key challenges and capitalizing on emerging opportunities.
