Assessing the BJP Government's Policies and Their Impact on India

The Bharatiya Janata Party (BJP) has been at the helm of India's governance for several years. While Prime Minister Narendra Modi has expressed good intentions for the nation, the effectiveness and impact of his plans have been a subject of intense debate. This article aims to analyze the policies of the BJP government and their overall effect on India, with a specific focus on demonetization and the Goods and Services Tax (GST).

Introduction to the BJP Government's Plans

Since its formation in 1980 and coming to power in 2014, the BJP has pursued a series of economic and social policies. These plans range from economic reforms to infrastructure development. Prime Minister Modi has often invoked nationalism and economic growth as the driving forces behind his policies. However, as this article will demonstrate, the execution and outcomes of these plans sometimes fall short of their intended goals.

Assessing the Impact of Demonetization

Demonetization, which refers to the act of invalidating certain currency notes in circulation, was one of the most controversial policies implemented by the Modi Government. In November 2016, the Indian government invalidated the ?500 and ?1000 notes, ostensibly to combat black money and corruption. The idea was to curb illegal transactions by making them impossible to conduct in cash.

While the intentions behind demonetization were commendable, the execution and impact fell far short of expectations. According to various economic analyses, the policy led to a significant slowdown in economic activity. Several small and medium enterprises (SMEs) were severely impacted due to the sudden cash crunch. Many individuals faced long queues at banks, causing inconvenience and frustration. The informal sector, which constitutes a significant portion of India's economy, was particularly hard hit by this policy. An estimated crores of job losses were reported as small businesses struggled to survive. The policy also imposed an undue burden on the already strained banking system, leading to an increase in the rate of informal transactions.

Appraising the Implementation of GST

The Goods and Services Tax (GST) was introduced in India in July 2017 to simplify and harmonize the taxation system. The idea was to create a single market and streamline the interactions between businesses by making the tax system fairer and more transparent. However, the implementation of GST has been marred by logistical and administrative challenges. Many businesses reported delays in registrations, complications in compliance, and a lack of clarity in tax rates and exemptions.

While the intention behind GST was to create a more efficient economy, the execution has again been criticized. Business Associations reported that the complex structure of GST has led to increased compliance costs and reduced the competitiveness of businesses. For small businesses, the administrative burden of complying with GST has been overwhelming. The overall impact on the economy has been a mixed bag. Some sectors, such as the manufacturing and service industries, have benefitted, while others, particularly the informal sector, have been adversely affected.

Modi's Overreaction and Overdoing: The Impact on Lockdowns

One of the most controversial aspects of the BJP's governance has been the frequent imposition of lockdowns, particularly during the pandemic. India's lockdown of 2020, which impacted over 1.35 billion people, was one of the most extensive in the world. The intention behind the lockdown was to control the spread of the coronavirus and protect public health. However, the consequences were far-reaching and multifaceted.

The harsh and expensive lockdown led to a significant economic downturn. Businesses across various sectors, especially the informal and small-scale sectors, faced severe losses. The unemployment rate spiked, and millions of workers lost their jobs. The ineffectiveness of the lockdown in controlling the spread of the virus has also been questioned, leading to a widespread perception that the lockdown was more of an economic punishment than a public health measure.

Conclusion

In conclusion, while Prime Minister Modi's intentions for a better India are commendable, the execution and outcomes of the BJP government's policies have not always lived up to these intentions. Demonetization, GST, and stringent lockdowns have all shown the need for more thoughtful and carefully planned policies. The economic landscape of India is complex, and successful policy implementation requires a delicate balance between economic growth and social stability.

It is crucial for policymakers to learn from the past and focus on long-term sustainable growth. The well-being of the nation and its people should be the primary goal of any policy, and it is essential to ensure that such policies are implemented with due consideration for the potential implications on people's lives and the economy.