Prime Minister Modi set to push harder for South Korea model
President Moon Jae-in, right, shakes hands with Indian Prime Minister Narendra Modi after their joint press conference at Cheong Wa Dae in Seoul, Feb. 22, 2019. Yonhap
By Vishnu Prakash
This is the first in a two-part series about India after Prime Minister Narendra Modi's re-election. ― ED.
Defying all predictions by the pundits, the 900 million strong Indian electorate returned Prime Minister Narendra Modi to office, with a resounding and bigger mandate, in the recently concluded general elections. Unlike South Korea, India is a parliamentary democracy. Yet such is Mr. Modi's stature and charisma, that the people voted more for him than the Bharatiya Janata Party (BJP) that he leads. BJP's vote share rose to 37.4 percent ― an impressive 6 percent increase over the last 2014 elections. BJP bagged 303 out of 542 seats in Lok Sabha (People's House) while Indian National Congress (INC), India's GOP once led by Jawaharlal Nehru and Indira Gandhi, could muster barely 52 seats.
The "festival of democracy" witnessed the highest ever voter turnout at 67.11 percent. That women came out to vote in large numbers was another welcome feature. BJP thus became the first non-INC party in independent India to secure a second consecutive term. The urban intelligentsia especially the hyper-critical English media ― cocooned in an echo-chamber ― was especially shell-shocked by the outcome. Out in the cold and yearning for the return of an INC administration which they knew how to game, they failed to grasp the impact of the sweeping socio-economic changes ushered in during the five-year Modi rule.
PM Modi's unprecedented success is attributable to his ability to think outside of the box, make tough decisions and his incorruptibility. He seems indefatigable, never takes a holiday and sleeps barely four hours a day. Under his watch India has become one of the fastest-growing major economies in the world, whose GDP is likely to touch $5 trillion by the mid-2020s and $10 trillion by the early 2030s.
What particularly distinguishes his regime from the previous ones is the singular focus on social welfare. Two-thirds of India remains rural and one-fifth of her people still live below the poverty line (BPL). Initiatives ― like issuance of 1.2 billion biometric identity cards (Aadhaar), 337 million bank accounts for every BPL person, direct transfer of cash assistance into beneficiaries' account, rural electrification, crop insurance, subsidized clean cooking fuel connections to 71 million households, 178 million micro and small loans (MUDRA) ― went a long way to improve the wellbeing of the underprivileged. The MUDRA loans worth $132 billion (5 percent of India's GDP), were given without collateral, to enable setting up of small businesses. Seventy percent of the beneficiaries are women.
However, some mistakes were committed and certain old fault-lines still exist.
Criminalization of politics and misuse of money-power remains a concern, as does the farm distress, due to shrinking land holding, high input costs and falling prices of agricultural produce. The Modi administration's well-intentioned demonetization of high-denomination currency caused widespread hardship and economic disruption, without anticipated benefits. Inter-faith relations have also come under some stress.
The Modi administration 2.0 is off to a flying start, with a commitment to inclusive growth. In the cards are deeper economic reforms, rapid industrialization, emphasis on timely implementation, improvement in ease of doing business, as well as further consolidation of ties with neighboring and partner nations in the Indo-Pacific region like South Korea.
Mr. Modi admires South Korea and has been there several times, including March this year, to receive the prestigious Seoul Peace Prize. Last year, addressing a business conference, he recalled that in 2001, as the chief minister (governor) he was asked about the ideal model for his province, Gujarat. “I said I wanted to make Gujarat like South Korea,” he answered. Given complementary economies and a broad similarity of outlooks, both nations are expanding collaboration in newer areas like defense, cyberspace and the Fourth Industrial Revolution.
The writer is former Indian Ambassador to South Korea and Canada, spokesperson of MOFA, Consul General Shanghai. Presently he is a foreign affairs analyst, columnist, adviser and TV panelist specializing in the Indo-Pacific region.