The document outlines several economic reforms and initiatives undertaken by the Modi government in India. It discusses programs like Jan Dhan Yojana, Goods and Services Tax, resolving non-performing assets, and improving ease of doing business. The key principles behind these reforms are identifying issues, creating technological infrastructure, integrating stakeholders, bringing transparency, and ensuring accountability. Case studies provided show how these principles were applied to different policy areas to drive investment, growth, and formalize the economy.
2. To drive investment and catalyse economic
growth, the ecosystem requires
• Transparent decision making process
• Predictable policies
• Processing and analysis of large data
• No policy paralyses at the government level
2
3. Modinomics – Basic Principles
A. Recognise and acknowledge the problem
B. Create technological infrastructure for solution
C. Integrate stakeholders into the technological
infrastructure
D. Fix accountability of intermediaries and set
targets create performance matrix
E. Bring transparency and level playing field in the
ecosystem
3
4. Case Studies
• Jan Dhan Account – JAM
• Non-Performing Assets
• Micro, Small and Medium Enterprise
• Anti Corruption Initiatives
• Goods and Services Tax
• Ease of Doing Business
4
5. Jan Dhan Account – JAM
JAM ( Jan Dhan Account, Aadhar and Mobile)
(A) Identifying the problem (B) Creating technological infrastructure for solution
(C&D) Integrate stakeholders into
technological infrastructure
(E) Transparent Ecosystem
NPA 5
6. (A) Identifying the problem
• Financial exclusion of large section of
population
• Leakages in social welfare schemes
• Lack of targeted delivery
…..Jan Dhan Account – JAM
Jan Dhan Account – JAM
A
7. (B) Creating technological infrastructure for
solution
• JAM, trinity
Aadhar seeding
Mobile Applications
Direct Benefit Transfer-DBT
…..Jan Dhan Account – JAM
Jan Dhan Account – JAM
B
8. …..Jan Dhan Account – JAM
(C&D) Integrate stakeholders into technological
infrastructure
• Integrating services as a package
Insurance Policies
Credit Availability
Rupay card
Social benefit scheme directly to bank account of eligible beneficiary
Banking institutions
Target 34 crore bank account.
Digital payment application.
Jan Dhan Account – JAM
C
9. (E) Transparent Ecosystem
• Better utilisation of government resources.
• Financial participation
…..Jan Dhan Account – JAM
Jan Dhan Account – JAM
D
10. Non-Performing Assets
(A) Identifying problem twin
Balance Sheet Problem
(B) Resolution Mechanism
(C & D) – Solution and
Integrating Stakeholders
(E) Recovery of Rs.1,26,000
Crores of bad loan MSME
6
11. Non-Performing Assets
(A)Identifying problem twin Balance Sheet
Problem
• NPA (Identification, subquality assets and bad loans in
the bank)
• over leveraged corporates , debt servicing
• Stagnant projects
NPA
A
12. (B) Resolution Mechanism
• IBC ( Insolvency and Bankruptcy Code )
• Benami Properties Act
• Fugitive Offenders Act
• Willful defaulters list
Non-Performing Assets
NPA
B
13. (C & D) – Solution and Integrating Stakeholders
• NCLT
• Provisioning of bad loans
• Recapitalisation of banks
• Mergers of banks
• Pragati initiative of PM
Non-Performing Assets
NPA
C
14. (E) Transparent Ecosystem
• Recovery of Rs.1,26,000 Crores of bad loan
• Stronger banks
• Road Constructions
• Unlocking projects worth Rs 9,00,000 corers.
Non-Performing Assets
NPA
D
15. Micro, Small and Medium Enterprises
(A ) Identifying Problem (B,C & D)Technological infrastructure
and integrating stakeholders
(E) Transparent Ecosystem
Anti Corruption Initiatives
7
16. Micro, Small and Medium Enterprises
(A ) Identifying Problem
• Missing link
• Employment
• Complex compliances
• Credit availability
• Market access
• Ease of doing business
MSME
A
17. Micro, Small and Medium Enterprises
(B,C & D)Technological infrastructure and
integrating stakeholders
• Skilling
• Startup /Standup initiatives
• Mudra loans
• Treads – Bill discounting platform
• GEM
• GST
• PSB 59
• समाधान portal
• Easing labour Laws
MSME
B
19. Anti Corruption Initiatives
(A) ) Identifying Problem (B) Resolution Mechanism
(C&D) Integrating Stakeholders and Accountability (E) Transparent Ecosystem GST
8
20. Anti Corruption Initiatives
(A) Identifying Problem
• Low tax to GDP ratio
• Concentration of wealth
• Crony capitalism
• Gaps in tax collections
Anti Corruption Initiatives
A
21. (B) Resolution Mechanism
• Foreign assets disclosure scheme
• Income Disclosure Scheme I &II
• Exchange of information between G20
• Demonetisation – Creating audit trail of business
transactions, establishing ownership
• Deregistration of shell companies
Anti Corruption Initiatives
Anti Corruption Initiatives
B
22. Anti Corruption Initiatives
(C&D) Integrating Stakeholders and Accountability
• Establishing audit trail
• Business transaction through banking system
• E assessment
Anti Corruption Initiatives
C
23. (E) Transparent Ecosystem
• Improved indirect tax collection
• No. of assessee increased from 3.68 to 6.68 crores
• Prevention of money laundering
Anti Corruption Initiatives
Anti Corruption Initiatives
D
24. Goods and Services Tax
(A) Identifying Problem (B) Technological Infrastructure
(C & D) Integrating Stakeholder
and Accountability
(E) Transparent Ecosystem
EODB
9
25. Goods and Services Tax
(A)Identifying Problem
• Fragmented market
• Large no. of state and central indirect taxes
• Inspector Raj
• High incidence of indirect tax
GST
A
27. Goods and Services Tax
(C & D) Integrating Stakeholder and Accountability
• No. of registered units increased from 65 lakh to 1.2 cr.
• Subsuming of all indirect taxes
• Cooperative federalism in GST council
• Online registration, returns, assessment, refunds
GST
C
28. (E) Transparent Ecosystem
• One market
• One Tax
• lower indirect taxes
• Large segment of informal economy moving to formal
segment
• Ease of compliance
Goods and Services Tax
GST
D
29. Ease of Doing Business
(A) Identifying Problem (B) Focused and Targeted Approach
Simplification under central industrial Acts (C&D) Fix Accountability and set Target
10
Thanks
30. Ease of Doing Business
(A) Identifying Problem
• Compliance burden
• No easy entry and exit
• Entrepreneurial bottlenecks
• Very low ranking 142
EODB
A
31. (B) Focused and Targeted Approach
• Focusing on ten parameters
• Setting targets of 50th rank
• Repeal of about 1000 redundant laws
• UAN ( Universal Account No.) for labour force
Ease of Doing Business
EODB
B
32. Ease of Doing Business
(C&D)Fix Accountability and set Target
• Simplification under central industrial Acts
Registers reduced to 5 from 56
Relevant field of compliance reduced to 144 from 933
• Ease of doing Business ranking for states also
• Establishment of Commercial court
EODB
C
33. (E) Transparent Ecosystem
• Current Ranking of 77 from 142 in 2014
• Ease of compliance across all parameters
• Road map on Enforcing contrast
Land registration – digitisation of land records
Paying of taxes – E assessment
Ease of Doing Business
EODB
D