The document discusses sustainable and inclusive economic growth in India. It argues that economic development must be both sustainable and inclusive to mitigate resource constraints and ensure sufficient growth. It outlines several policies and programs aimed at promoting inclusive growth, such as financial inclusion initiatives, employment generation programs, rural development programs, and expanding access to healthcare and insurance for the poor. It also discusses policies to enable economic growth, including maintaining macroeconomic stability, increasing infrastructure investment, boosting manufacturing, and improving the business environment through reforms like the Goods and Services Tax and bankruptcy code. The overall goal is to achieve robust GDP growth of 7.5-8% while promoting inclusive development.

1. Sustainable & Inclusive
Economic Growth
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05/18/2016
Gopal Krishna Agarwal
National Spokesperson on Economic
Affairs, BJP
gopal.agarwal@bjp.org

2. Sustainable and Inclusive Economic
Development
• For economic development to be sustainable it has to be inclusive
• There has to be sufficient growth to mitigate resource constraints of
the government for inclusive growth.
gopal.agarwal@bjp.org
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3. Sustainable Economic Development
Sound macroeconomic parameter
• Inflation under control
• Sufficient Currency Reserve
• Fiscal and Current Account deficit under control
• Robust GDP growth, about 7.5% to 8%
• High FDI inflows
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4. Inclusive Growth
• JAM (Jandhan Yojna, Aadhar Card, Mobile)
• Direct Benefit Transfer (DBT) – Rationalization of subsidy &
plugging of leakages
Diesel Subsidy
Gas Subsidy
Fertilizer Subsidy
• Insurance
Health
Life
Pension
Crop
• Employment generation
Skill India for Dalit & woman entrepreneurs
Startup India
Mudra Bank – loans to 32.5 million beneficiary about Rs 1.25 lakh crore
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5. Inclusive Growth
• Rural / Agriculture Sector focus
Major focus on irrigation
Creation of a National Agricultural Market (NAM) for products, reforming
585 mandis
Soil health cards
Gram Uday se Bharat Uday
Doubling farmers income
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6. Enabling Environment for Growth
• Capital formation
Lower cost of capital
• Demand push
Government Spending / increased public investment
Domestic Consumption Demand
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7. Capital Formation
• Low Interest Rate regime
• Bankruptcy Law, risk appetite, exit policy
• NPA/ Banking Sector Reforms
• Skill India
Loan to women & dalit entrepreneurs
• Mudra Bank for MSME sector
• National investment & infrastructure fund
• UDAY restructuring of accumulated debt of Rs 4.3 trillion with
Discoms.
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8. Demand
Government Spending
• Higher government spending in future to be based on higher revenue
collection.
• Measures to boost revenue: curb on corruption and black money,
GST, elimination and rationalisation of subsidy, Mauritius Treaty etc.
• Investments in Railways Rs 8.5 trillion up to 2020
• CAMP forest funds 42000 crore to states
• Infrastructure – Capital expenditure increased to 4.7% of GDP in
2016
Sagarmala about 1000 ports
Roads, increase in budgetory allocation by 55%
70% increase in project awarded by National highway authority
Pradhan Mantri Gramin Sadak Yojna
Inland waterways
Smart cities
Namami Gange 36000 crore
Interlinkages of rivers
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9. Rural Demand
• Pradhan Mantri Gramin Sadak Yojna
• Pradhan Mantri Sinchai Yojna
• Liquidity in rural sector, targeted transfer of subsidy through DBT
• Higher % of expenditure component in rural income
• Farmers income to double by 2022
• Skill India loans through 1.25 lakh branches, each branch to give 2
loans
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10. Growth Enablers
A) Power
• Availability of subsidized and assured power to industries for 10 years
• Rs 10 lakh investment in RE by 2022
• UDAY scheme to restructure debt : - savings about Rs 1.8 lakh crore
annually
• Assured coal and gas supply to power companies
• Saving through LED & efficiently plant load factor
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11. Growth Enablers…
B) Environment clearances & transparency on
allocation of natural resource
• Cleared 2000 projects unlocking Rs 10 lakh crore investment in two years
• Permission process automatic
 Online
 Transparent
 Policy Decision
 Standardization
 Decentralization – 10 regional offices
• Clearances of linear project up to 40 hectares through regional centres
only
• Reduction in Inspector Raj. SMS alerts for pollution monitoring
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12. • Tax law transparency & dispute settlement
• Exit policy
• Corruption
• Mauritius treaty
• Bureaucracy - Compulsory retirement, accountability and removal
of consultants
• PRAGTI - monthly monitoring of 15 projects by payout of box of 50
projects
• Land lease policy / Digitalization of land records
Ease of Doing Business
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13. • Dispute resolution of public private partnership
• GST
• Monetary policy committee
• FRBM committee
• Merger of Banks
• Disinvestments
• Company law – 700 modification
• Land acquisition laws
Ease of Doing Business…
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14. THANK YOU
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Gopal Krishna Agarwal
National Spokesperson on Economic
Affairs, BJP
gopal.agarwal@bjp.org