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“MANDATE 2024: PRIORITIZING ECONOMIC GOVERNANCE”

Syllabus:

• GS-3- Sustainable economic growth , policies and implementation ,Challenges and prospective solutions

Focus :

• The article emphasizes that the mandate from the 2024 elections centers on prioritizing economic governance over ideological pursuits. It highlights the necessity for the new government to focus on economic growth, job creation, and reducing regional disparities. The coalition dynamics could help in maintaining this economic focus and addressing the challenges of employment, demographic shifts, and gender inclusion in the workforce.

Source - TET

Significance of the Mandate

• Rejection of Ideological Politics: The electorate has moved away from ideological pursuits, demanding economic reforms.
• Economic Aspirations: The drop in BJP’s numbers reflects dissatisfaction with the previous economic agenda and a desire for stronger economic policies.
• Governance Focus: Modi’s previous electoral victories were based on governance, anti-corruption, and direct benefit transfers.
• Distraction from Economic Agenda: The 2024 campaign’s ideological slant diluted the focus on economic issues, leading to electoral setbacks.

Challenges in Economic Governance

• Employment Crisis: High youth population in states like Uttar Pradesh, Bihar, Rajasthan, and Madhya Pradesh necessitates job creation.
• Demographic Dividend: By 2031, a significant portion of the population will be in the working-age group, requiring effective utilization.
• Quality Labor Shortage: Industries face a shortage of skilled labor despite high unemployment rates.
• Limits of Welfare Policies: The effectiveness of freebies and doles is reaching its limit, necessitating more sustainable economic policies.

Strategies for Economic Growth

• Enhancing Manufacturing Attractiveness: Policies to make manufacturing more appealing and job-generating.
• Skilling the Workforce: Addressing the gap in skilled labor through training and education reforms.
• Increasing Female Workforce Participation: Policies to encourage more women to join the workforce, addressing gender disparities.
• Regional Disparities: Empowering state governments to address local economic challenges and reduce regional inequalities.

Role of Coalition Politics

• Support for Economic Reforms: Regional parties have historically supported economic reforms and can help maintain an economic focus.
• Guardrails for Governance: Allies can act as checks to ensure the government remains focused on economic issues.
• Lessons from History: Previous coalition governments successfully implemented economic reforms with the support of regional parties.

Public Sentiment and Economic Reality

• Perception vs. Reality: Despite an 8.2% growth rate, the public’s perception of economic well-being varies.
• Addressing Aspirations: Policies need to resonate with the public’s aspirations for tangible improvements in living standards.
• Role of Political Leadership: Ensuring that economic growth translates into visible benefits for the population.

Economic Priorities for the New Government

• Job Creation: Focus on generating employment across sectors to absorb the growing working-age population.
• Inclusive Growth: Implementing policies that ensure benefits reach all sections of society, including women and marginalized groups.
• Balancing Fiscal Discipline and Growth: Strategic fiscal management to support growth without compromising fiscal health.
• Public Investment: Continuing and enhancing public investment in infrastructure and social sectors.

Economic Governance Models

• Modi’s Governance Model: Learning from Modi’s previous governance strategies that emphasized anti-corruption and direct benefit transfers.
• Innovative Economic Policies: Developing new economic policies that address current challenges and leverage technological advancements.
• Coalition Dynamics: Utilizing the coalition setup to foster collaboration and prevent ideological distractions.

Implementing Effective Economic Policies

• Policy Framework: Developing a clear policy framework that prioritizes economic issues over ideological ones.
• Legislation and Regulation: Ensuring that new laws and regulations support economic growth and job creation.
• Stakeholder Engagement: Involving various stakeholders, including state governments, industries, and civil society, in policy-making.

Addressing Fiscal Challenges

• Balancing Fiscal Discipline and Growth: Strategic fiscal expansion to fund necessary public investments while maintaining long-term fiscal health.
• Innovative Financing: Exploring innovative financing mechanisms to fund public sector initiatives without overly straining the fiscal budget.

Long-Term Economic Vision

• Sustainable Development: Focusing on sustainable economic policies that balance growth with environmental concerns.
• Technological Integration: Leveraging technology to enhance productivity and efficiency in various sectors.
• Global Competitiveness: Positioning India as a competitive player in the global market through strategic economic reforms.

Conclusion

• Mandate 2024 is a clear directive from the electorate to focus on economic governance.
• The new government must address employment, harness the demographic dividend, and ensure inclusive growth.
• Coalition dynamics can support this economic focus, ensuring that the government’s policies are progressive and effectively implemented.

Conclusion

• Holistic Approach: A multi-faceted approach is required to boost demand, involving public investment, fiscal policy adjustments, and private sector engagement.
• Sustainable Growth: Ensuring that growth is inclusive and environmentally sustainable, addressing both immediate and long-term economic challenges.
• This detailed plan outlines the strategies the new government can adopt to address the existing economic challenges and stimulate sustainable growth.

Source:The Hindu

Associated Article :

https://universalinstitutions.com/indian-economy-growth-and-considerations/

Mains Practice Question :

GS-3

“Analyze the significance of Mandate 2024 in shaping India’s economic governance. How can the new government balance economic growth, job creation, and regional disparities while ensuring inclusive development?”(250 words)