Key Takeaway From INC Manifesto 2014

The bugle for the biggest elections in the largest democracy of the world has been sounded. All the leading parties be it national or regional has started to come out with their own set of promises. Here is a sneak peak on what the ruling Indian National Congress party’s manifesto has to say.

• On the socio-economic front the leading party of the ruling UPA Government has come up with a 15 point agenda. The main points that they are looking forward to address are as follows:
• With a vision of building India as the world leader in manufacturing the party promises to ensure a 10% growth rate in the manufacturing sector with a special emphasis on small and medium enterprises.
• The charter of minimum socio-economic rights we will put in place includes:
  
  • Right to Health
  • Right to Pension
  • Right to Homestead or Housing
  • Right to Social Security
  • Right to Dignity and humane working conditions
• Right to Entrepreneurship that will protect and assist all those who seek to become entrepreneurs
• The party looks forward to introduce the Goods and Services Tax Bills and a new Direct Tax Code Bill in Parliament and ensure they are enacted within one year. Also they will be ensuring that the unpredictable risk of retroactive taxation is avoided.
• The party if forms government  will invest more than USD 1 trillion over the next decade on upgrading India’s power, transport and other development infrastructure. We will support more transparent, competitive and better-regulated Public Private Partnerships for both hard and soft infrastructure development.
• Promote a more flexible labour policy as needed for maintaining competitiveness, while moving towards international labour standards for our workers.
• Promote greater integration with the global economy and encourage Foreign Direct Investment, especially in labour intensive sectors.

The main concern for the investors be it foreign or domestic is how the new government will be addressing the declining macro economic situation. On this front, the Congress party has come up with an Economic Roadmap for 2014-2019 the finer points are as follows:

• Fiscal Consolidation: On this part, the INC is looking forward to achieve the target of fiscal deficit of 3% of Gross Domestic Product (GDP) by 2016-17, and remain below that level always.
• Current Account Deficit: Our Current Account Deficit can be financed only by foreign investment, whether it is Foreign Direct Investment (FDI) or Foreign Institutional Investors (FII) or External Commercial Borrowing (ECB) or any other kind of foreign inflow. Hence, there is no room for any aversion to foreign investment.
• Price Stability and Growth: In a developing economy we must accept that when our aim is high growth there will be a moderate level of inflation. Reserve Bank of India must strike a balance between price stability and growth while formulating monetary policy.
• Infrastructure: INC promises to rebuild infrastructure and add a huge quantity of new infrastructure. Every proven model must be adopted. The Public Private Partnership (PPP) model must be made more transparent and competitive and more widely used. New financing structures will be created for long term funds and pooling of investments.
• Manufacturing: Thrust will be given on manufacturing and especially on manufacturing for export. It proposes that all taxes, Central and State, which go into an exported product should be waived or rebated. Proposal for a minimum tariff protection so that there is an incentive to manufacture goods in India rather than import them into India.
• Financial Sector Reforms: The recommendations of the Financial Sector Legislative Reforms Commission that require no change in legislation must be implemented immediately and, for the other recommendations, we must draw a timetable for passing legislation.
• Subsidies: Given the limited resources, and the many claims on the resources, INC is looking forward to choose the subsidies that are absolutely necessary and give them only to the absolutely deserving. Introducing sensible user charges has been proposed because many more people are willing to pay for better quality services, for example, uninterrupted power and better quality train services. We will use this money saved to expand health, education and infrastructure.
• Urbanisation: Our cities will become ungovernable, and perhaps unlivable, if we do not address the decay in our cities. Cities have wealth, cities also create wealth. That wealth should be tapped for resources to rebuild the cities with a new model of governance.
• Skill Development: Skill development must rank alongside secondary education, university education, total sanitation and universal health care in the priorities of the government.
• Sharing responsibility between States and Centre: States have the fiscal space to bear a reasonable proportion of the financial costs of implementing flagship programmes and must willingly do so, so that the Central government can allocate more resources for subjects such as defence, railways, national highways and telecommunications that are its exclusive responsibility.

Follow this space to know about the promises made by the other major parties for the upcoming elections.