#5 Challenges For Narendra Modi Government That Can Give Direction To D-street
A Crisil report said more than 1.5 million people enter the job market every month in the country and the rapid adoption of automation, which reduces the dependence on labour, is aggravating the job situation. Creating sustainable skilled job opportunities will be sacrosanct for going forward.
Replenishing Banking Industry
The issue with increasing Non Performing Assets and depreciating asset quality has been long drawn. The central bank plans to set up a secretariat to oversee the resolution process for the biggest defaults by loan amount, said a government official on conditions of anonymity. The move comes after the South Asian nation’s cabinet approved plans to amend the country’s Banking Regulation Act to give more powers to the RBI to govern lenders and address bad loan issues.
Stressed assets — bad loans, restructured debt and advances to companies that can’t meet servicing requirements — have risen to about 17 per cent of total loans, the highest-level among major economies. Resolving this should be a priority.
Reassuring India’s Religious Minorities
A lot has been said about the communal divide a predominantly Hindu party might cause among the minorities — the fine line Narendra Modi government needs to walk to ensure inclusive growth.
Narrowing The Fiscal Deficit
A sharp narrowing in the current account deficit, to an expected 2 per cent of GDP from a record high 4.8 per cent in the previous fiscal year, was helped by steps to curb gold imports.
Higher duties and other restrictions almost halved gold imports but the steps have been deeply unpopular with Indian households, who invest in the yellow metal to protect their savings from inflation and to provide gifts at weddings and on other special occasions.
India’s main internal security threat is from Maoists. They have acquired guns, hand grenades and guerrilla war expertise over the years and routinely target security forces and other government officials in areas that contain the country’s richest mineral deposits.
Top Indian iron ore miner NMDC Ltd and the world’s top coal miner, Coal India Limited, spend growing amounts on security. Some small- and mid-sized mining companies are also forced to pay "protection" fees to the Maoists.