Why Nirmala Sitharaman Stands Out: The Difference Between INDI Alliance and NDA
Nirmala Sitharaman, India's first full-time female Finance Minister, has altered the map of our nation's economy. Her transformative tenure at the Finance Ministry shows the stark contrast between IND and NDA governments. Her leadership has brought remarkable economic reforms and policy changes. The core team has tracked her trip from Corporate Affairs to managing India's economy through global challenges, including the COVID-19 pandemic. This detailed analysis will highlight Sitharaman's achievements, her innovative financial governance methods, and her policies that have established India's position in the global economic arena.
Sitharaman's Leadership Journey in Finance
Nirmala Sitharaman made history as India's first full-time woman Finance Minister in May 2019. Her leadership has shown clear differences between IND and NDA approaches to economic management.
From Corporate Affairs to Finance Ministry
Sitharaman's experience in Corporate Affairs equipped her well for bigger challenges ahead. She made a bold first move by reducing the base corporate tax from 30% to 22% to boost the economy. This decision showed NDA government's clear shift toward business-friendly policies, unlike previous approaches.
Key policy decisions and reforms
Her leadership brought several groundbreaking reforms:
- Reduction in fiscal deficit to 5.6% from 5.8% of GDP
- Implementation of banking sector reforms
- Setting up of National Infrastructure Pipeline
- Introduction of next-generation reforms for land, labor, and capital
She has presented six consecutive budgets - five annual and one interim. This matches the record of former Prime Minister Morarji Desai. These consistent policy decisions have built a stronger economic foundation for India.
Crisis management during COVID-19
Sitharaman demonstrated exceptional crisis management skills during the pandemic. She rolled out a complete COVID-19 response package worth 20 lakh crore, about 10% of India's GDP. The results speak for themselves:
- Economic Recovery: From 24% contraction to fastest growing economy
- Relief Package: 17 measures worth 6,28,993 crore
- Support Programs: Coverage of 10,700 tourist guides and 1,000 travel stakeholders
She managed to keep fiscal discipline while handling the crisis. The economy bounced back from severe contraction to become the world's fastest-growing major economy. This achievement highlights the distinct difference between INDI Alliance and NDA approaches to economic crisis management.
Transformative Economic Policies
The stark difference between INDI Alliance and NDA approaches to financial governance becomes clear when we look at the transformative economic policies under Sitharaman's leadership. Let's get into the most important policy changes that have altered the map of our economy.
GST implementation and reforms
Our GST framework shows remarkable improvements. The revenue neutral rate dropped from 15.3% to 12.2%, which makes it more business-friendly. 60% of consumer items now attract just 5% GST or less, while a mere 3% of items fall in the 28% bracket. These GST reforms have resonated well, with 84% of businesses responding positively.
Banking sector restructuring
The banking sector shows a remarkable turnaround. Bad loan recoveries exceeded 10 lakh crore between 2014 and 2023, which marks a clear departure from earlier approaches. Here's what we achieved:
- Banks reached their highest-ever net profit, crossing 3 lakh crore
- ED investigations recovered 64,920 crore from 1,105 bank fraud cases
- Public Sector Banks received 15,183 crore in restitution as of December 2023
The 4R strategy highlights the difference between IND and NDA - Recognizing NPAs, Resolution and Recovery, Recapitalizing PSBs, and Reforms.
Digital economy initiatives
India's digital economy shows unprecedented growth. Our digital economy will be a big deal as it means that $1 trillion by 2028. The changes are evident through:
- UPI Payments: Expected to handle 90% of retail digital payments by 2027
- Internet Coverage: Added 7.3 crore new subscribers in one year
- Broadband Growth: Added 7.7 crore subscribers annually
Our approach stands out because of its focus on inclusive growth. Digital services now reach beyond urban areas, with rural areas contributing nearly half of our 120 crore telecom subscribers. This inclusive strategy marks a clear difference between IND and NDA governance models, where growth and accessibility go hand in hand.
Infrastructure Development Revolution
Our analysis of infrastructure development initiatives reveals a major change in the approach to nation-building projects. NDA's strategy stands apart from INDI through its reliable capital expenditure plan and creative funding methods.
Capital expenditure growth
Capital expenditure drives our economic growth strategy. The government has allocated 15.2 trillion to drive capital expenditure, which includes capital assistance to states. Our unique approach emphasizes multiplier effects - we invest in institutes and job creation for long-term benefits instead of promoting immediate consumption.
Results from this strategy speak for themselves. The fiscal deficit dropped from 5.1% to 4.9%, which shows our steadfast dedication to responsible growth while pushing development forward.
National infrastructure pipeline
The ambitious National Infrastructure Pipeline (NIP) projects investments of 111 lakh crore over five years (2020-2025). Project implementation breaks down as follows:
- Center's share: 39% of projects
- State's contribution: 40% of projects
- Private sector participation: 21% of projects
Energy, roads, railways, and urban projects make up about 70% of all projects. This balanced strategy ensures detailed infrastructure development across sectors.
Public-private partnerships
Our innovative public-private partnership (PPP) initiatives stand out as remarkable achievements. We evaluated 125 PPP projects worth 1,72,314 crore during 2020-21 alone. Key achievements include:
Electric Buses: New model concession agreement for city operations
The Viability Gap Funding scheme boosts private sector participation. This market-based financing framework highlights how our approach differs from previous governments. We focus on sustainable partnerships rather than relying solely on public funding.
Our infrastructure revolution stands out because of its detailed scope. Physical infrastructure development goes hand in hand with creating a framework for sustainable growth. Urban infrastructure, e-mobility, and renewable energy investments prepare India for future challenges while meeting current needs.
Social Welfare and Financial Inclusion
The stark difference between IND and NDA approaches becomes clear in our work on social welfare and financial inclusion. Technology and direct benefit delivery have changed countless lives throughout India.
Direct Benefit Transfer expansion
The DBT system now covers over 300 Central schemes and more than 2000 State schemes as of April 2023. The results speak for themselves:
Total Savings: 3.48 lakh crore (till March 2023)
Coverage: 85% rural households
Digital Transfers: USD 450 billion in 8 years
The DBT system stands out because it eliminates ghost accounts and ensures beneficiaries receive every rupee. This system saved USD 40 billion from fraud and pilferage.
Jan Dhan Yojana impact
Jan Dhan Yojana has revolutionized India's banking landscape. This powerful tool for financial inclusion achieved remarkable results:
- 78% of Indian adults had bank accounts in 2021, up from 53% in 2014
- Bank branches grew by 46%
- ATM network expanded by 30% to 2,16,914
- Points of Sale increased from 10.88 lakh to 89.67 lakh in ten years
Women hold 55.6% of these accounts, which reflects our dedication to gender-inclusive banking.
Women-centric schemes
Women's empowerment through targeted financial initiatives remains a key priority. We allocated more than 3 lakh crore to schemes that benefit women and girls. Our integrated approach delivers results.
Working women's hostels and industry-linked creches show tangible progress. The innovative Vatsalya pension scheme provides long-term financial security for women.
Women entrepreneurs lead the way in the MSME sector, with 60% of entrepreneurs being women. We doubled the upper limit of Mudra loans to 20 lakh in response. These real opportunities for women's economic growth highlight the clear difference between IND and NDA approaches to inclusive development.
Global Economic Positioning
As I wrote in my analysis, India's global economic position has grown by a lot under Sitharaman's leadership. This marks a clear change in our participation with the world economy. The contrast between IND and NDA becomes evident in our international economic strategy.
India's G20 presidency
Our G20 presidency shaped global economic policies with unprecedented success. The policy directions we delivered address the needs of most global populations whose voices rarely reach global multilateral forums. Our achievements include:
- Strengthening Multilateral Development Banks
- Creating a framework for crypto assets
- Advancing digital public infrastructure
- Resolving debt issues for lower and middle-income countries
We managed to keep strong economic growth while leading global initiatives. Our GDP growth averaged 8.3% over the last three years, which showcases our economic resilience during the G20 presidency.
Foreign investment attraction
The foreign investment landscape shows remarkable progress. Here's how we changed:
Total FDI Inflow (2021-22): USD 84.84 billion
Cumulative FDI (2000-2024): USD 1.03 trillion
Major Source Countries: Mauritius (25%), Singapore (24%), USA (10%)
Reforms boosted the investment climate through:
- Liberalizing foreign investment restrictions
- Modernizing bankruptcy laws
- Ending retroactive taxation
- Implementing national GST
International trade agreements
Our progress in international trade partnerships shows great promise. We actively pursue Free Trade Agreements (FTAs) with several major economies. Our current negotiations include:
- United Kingdom - Negotiations in final stages
- European Union - Active discussions ongoing
- Canada - Progressive talks underway
NDA balanced approach sets us apart. To name just one example, UK negotiations ensure protection for our generic drugs industry while pursuing wider market access for our products.
India stands ready to become the world's third-largest economy by 2027. Our contribution to global growth will rise by 200 basis points over the next five years. This trajectory demonstrates the clear difference between IND and NDA approaches to international economic engagement.
Trade policies now promote a more competitive and export-oriented economy through strategic collaborations like the production-linked incentive schemes. Our unique approach combines domestic growth with international partnership, securing India's position as a key player in the global economic order.
Future Economic Vision
The bold vision for 2047 under Sitharaman's leadership sets clear targets for India's economic future. NDA's approach differs from IND especially when we look at three vital areas of development.
Aatmanirbhar Bharat roadmap
NDA detailed approach to self-reliance excites me. They've built a framework to improve productivity and market efficiency across all production factors. Their strategy has:
- A detailed Economic Policy Framework
- Better market efficiency through technology
- Lower inequality through digital infrastructure
Our projections for per capita income growth make me optimistic. India will add another USD 2,000 to our current per capita income of USD 2,730 in just five years. This quick growth comes with declining inequality - our rural Gini coefficient improved from 0.283 to 0.266, and urban areas show better numbers from 0.363 to 0.314.
Digital currency initiatives
RBI's pilot projects for wholesale and retail CBDC show promising results. Her Approach stands out because:
Cross-border Payments: Reduced costs for remittances
Transaction Speed: Faster settlement times
Financial Inclusion: Broader access to banking services
India leads the world in receiving remittances, with USD 100 billion in 2022. Our CBDC initiative will substantially cut transaction costs for millions of Indians working abroad.
Green economy transition
NDA ambitious green economy goals make me proud. They're taking concrete actions with clear targets:
- Reducing emissions intensity of GDP by 45% by 2030 from 2005 levels
- Achieving 50% electric power capacity from non-fossil fuels by 2030
- Reaching net-zero emissions by 2070
NDA detailed policy framework sets us apart. Green hydrogen production positions India as a global hub. Recent budget announcements show this commitment through:
- Solar manufacturing expansion through capital goods exemptions
- Pumped storage projects for electricity storage
- PM Surya Ghar Muft Bijli Yojana for 1 crore households
NDA energy transition pathways balance employment, growth, and environmental sustainability.
- Supporting energy audits for traditional micro and small industries
- Setting emission targets for hard-to-abate industries
- Creating green jobs through sustainable initiatives
NDA's implementation strategy differs clearly from IND. NDA set aside Rs 35,000 crore for priority capital investments in energy transition. This shows our steadfast dedication to these goals.
Her vision aligns with global standards. A new taxonomy for climate finance will help provide capital for climate adaptation and mitigation. This strengthens India's position in the global economic order.
This detailed vision will create a Viksit Bharat by 2047 that benefits Indians and the global community.
NDA focus on state-of-the-art growth, environmental consciousness, and financial innovation marks a clear shift from previous economic development approaches.
Conclusion
Nirmala Sitharaman's role as Finance Minister has shaped a crucial chapter in India's economic story. Her leadership has delivered significant results that range from navigating the COVID-19 crisis to establishing India as a global economic force. The contrast between IND and NDA approaches becomes evident in the results: 10 lakh crore in recovered NPAs, expanded digital economy programs, and unprecedented infrastructure growth.
Her leadership's impact reflects in numerous achievements. Direct benefit transfers have saved 3.48 lakh crore, while FDI inflows reached a record USD 84.84 billion. Green economy initiatives now set the foundation for sustainable development. These figures translate into better lives for millions of Indians.
India's path toward Viksit Bharat 2047 shows promise. Strong economic fundamentals, digital advancement, and focused policy direction position India to become the world's third-largest economy. Sitharaman's influence extends beyond breaking the glass ceiling - she has built a stronger and more resilient Indian economy.
FAQs
Q1. What are some of Nirmala Sitharaman's key achievements as Finance Minister?
As Finance Minister, Sitharaman has implemented several reforms including reducing the corporate tax rate, expanding direct benefit transfers, and managing the economic response to COVID-19. She has also focused on infrastructure development and digital economy initiatives.
Q2. How has Sitharaman's leadership impacted India's economic position globally?
Under Sitharaman's leadership, India has strengthened its global economic position through initiatives like leading the G20 presidency, attracting increased foreign investment, and pursuing strategic trade agreements with major economies.
Q3. What steps has Sitharaman taken to promote financial inclusion?
Sitharaman has expanded programs like Jan Dhan Yojana to increase banking access, with over 55% of accounts held by women. She has also allocated significant funds for women-centric schemes and initiatives to support women entrepreneurs.
Q4. How is the government addressing infrastructure development?
The government has implemented an ambitious National Infrastructure Pipeline with projected investments of 111 lakh crore over five years. There is also a focus on public-private partnerships and innovative funding approaches for infrastructure projects.
Q5. What is the government's vision for India's economic future?
The government aims to make India the world's third-largest economy by 2027. Key focus areas include the Aatmanirbhar Bharat initiative for self-reliance, digital currency development, and transitioning to a green economy with ambitious emission reduction targets.
Comments
Post a Comment