Modi Government’s Decisive, Multi-pronged Action Against Corruption

Published By : Admin | March 14, 2019 | 14:36 IST

One of the biggest evils plaguing our nation was the curse of corruption. Winning on the plank of eradicating corruption from the very roots, Modi government has provided an incorruptible administration at the helm. It has taken stringent steps to arrest generation of black money as well ensure that economic offenders are brought to book.

As its first cabinet decision, it set up a court monitored SIT which made several recommendations through its interim reports to check generation of black money, many of which were accepted by the government. The SIT had detected black money of more than Rs. 70,000 crores, including Rs. 16,000 thousand crores in offshore accounts.

In order to provide legal teeth to the fight against corruption, the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was enacted by Modi government. The Act allows a penalty up to 90% of the value of an undisclosed asset in addition to tax at 30%, as well as rigorous imprisonment in certain cases. These stringent penalties and imprisonment, act as an effective deterrence against entities involved in stashing Black money.

Modi government has strengthened the Double Tax Avoidance Agreement (DTAA) with various countries, such as Mauritius, Singapore, Cyprus, etc. The government renegotiated tax treaties to curb treaty abuse, tax evasion and round-tripping of funds—the practice of money stashed overseas by Indians returning home through tax haven countries. These amended tax treaties are considered as a big victory in India’s fight against black money.

Under the leadership of PM Modi, the government has taken various proactive measures against black money stashed abroad which have led to positive results. There has been significant decrease in the loans and deposits in the Swiss banks as well as in Swiss non-bank loans and deposits. The steps taken by Modi government to check the flight of black money in off-shore accounts include, India and Switzerland signing a Joint Declaration on the introduction of the Automatic Exchange of Information (AEOI) on tax matters. This will ensure that India will receive information on accounts held by Indian residents in Switzerland from September 2019 for 2018 and subsequent years on an automatic basis.

The Modi government successfully enacted the long pending Benami Transactions (Prohibition) Amendment Act, 2016 to enable confiscation of Benami property and prosecution of Benamidar and the beneficial owner, which may result in rigorous imprisonment up to seven years and fine up to 2 percent of the fair market value of the property. The 24 dedicated Benami Prohibition Units (BPUs) have been set up all over India to ensure swift action in respect of Benami properties. This resulted in around 1,600 transactions being a part of provisional attachment while the value of properties under attachment is worth Rs. 6,900 crores.

The Fugitive Economic Offenders Act, 2018, a brainchild of Modi government, equip the investigative agencies going after absconding economic offenders. It allows the law enforcement agencies to confiscate assets of those who cheat the nation and flee the jurisdiction of Indian courts. This will force the accused to return to India and face trial for his offenses and in turn, help the banks and financial institutions to achieve higher recovery from financial defaults committed by fugitive economic offenders. Additionally, Fugitive Economic Offenders (Procedure for Conducting Search and Seizure), Rules, 2018 ensures faster attachment and confiscation of assets.

The spirited fight against black money is ensuring that the decades of corruption is put to a halt and justice is served. It is for the time that the government has been proactive in curbing generation of black money. The anti-black money measures taken during the tenure of Modi government have brought undisclosed income of about Rs. 1,30,000 crore to tax.
Enforcing corporate accountability and accountability towards loans taken from public money is also an important way to clean the economy.

The UPA dispensation had left behind banks in a woeful state. From independence till 2008, that is, in 60 years banks gave loans of Rs. 18 lakh crore. However, from 2008 to 2014, in just 6 years, the Congress government took this figure to Rs. 52 lakh crore! These created massive NPAs which too were hidden by the UPA government.

The Modi government not only unearthed these NPAs but also set about resolving them by passing the Insolvency and Bankruptcy Code. So far, the government has helped banks and creditors recover more than Rs. 3 lakh crore.

Be it in clean governance or going after black money, be it launching a multi-pronged war against corruption or resolving NPAs, the Modi government has made every effort to usher in a clean economy for New India.

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"Building Atmanirbhar Bharat Through Comprehensive Job Creation"
February 24, 2024

One of the most effective pathways of aspirational and practical self-actualization for citizens of a nation is employment generation at scale and expanse. Prime Minister Narendra Modi’s government has been cognizant of this need and has moved the needle comprehensively so that job creation today is happening across the spectrum: in the formal and informal sectors, through direct and indirect opportunities, in conventional and unconventional fields, and via self-employment and the opening up of multiple avenues for gigs, start-ups and novel entrepreneurship.

Government Initiatives
If on the one hand, Bharat is seeing the exponential growth in the number of start-ups and a conducive environment has made it one that has the largest number of unicorns, on the other hand a record number of Mudra loans sanctioned have fuelled unprecedented women-led growth, and the Agniveer scheme that aims to recruit youth into the Armed services has seen adoption in record numbers. According to a Harvard University research, India is among the top quartile of fastest-growing countries till 2029 and is undergoing a historic transition towards becoming a more formalized and technologically advanced, digitally evolved nation.

In the three years between 2017-18 and 2020-21, total employment increased by 8.4 crore which is a manifestation of several key factors such as demonetisation, rationalisation of taxes, the introduction of the Goods and Services Tax (GST), digital inclusivity and digitisation of financial transactions, inclusion of skill development and vocational training in the National Education Policy, increasing the number of Industrial Training Institutes (ITIs), a fillip to the hitherto marginalized segments such as rural and tribal populace, and effective incentivization for a highly labour dominant unorganized sector. An example is how PM Street Vendor’s Atmanirbhar Nidhi (PM SVANidhi), has benefitted more than 56 lakh rehri or street vendors from June 2020 to November 2023.

Immense positive impact can be seen in the nation’s formal employment sector. India is the 5th largest economy in the world with 1.12 crore net additional employment created between 2015 to 2018. This is a result of the confluence of progressive, pro-industry policy decisions, leveraging of advancements in technology, reforms to ease business investment, and a focus on skilling. An example of how this translates on the ground is that with the PM MUDRA Yojana More than 15 crore people have been employed in the MSME sector out of which 3.4 crore are women.

In the IT Industry alone, around 20 lakh people have been employed between 2013-14 and 2021-22. Indirectly, about 6.24 crore jobs were created between 2014 and 2019 in India’s digital economy. When it comes to a boost in employment generation across sectors, let’s take the example of tourism – a revamped and increasingly attractive tourism and hospitality industry led to 1.9 crore indirect jobs being created in the tourism sector between 2017 and 2020. The overhaul in the hospitality sector has led to the creation of many such jobs directly, and indirectly; India is among the most visited countries in the world and has been experiencing a growing influx of tourists. This has led to business incentivization and a boost to local artisans, transport providers, and hotels and restaurants within the larger hospitality service industry. In Air transport alone, for every Rs. 100/- invested in the sector, 610 indirect jobs are generated.

Infromal Sectors
The winds of change can also be seen in the disruptive as well as informal sectors. Providing security and stability to the unconventional health and wellness, since 2014, about 5.65 lakh practitioners have been provided employment under Ayurveda, Yoga, Naturopathy, Unani, and Homoeopathy (AYUSH). The introduction of several new reforms, an increase in FDI, which have further helped in improving the ‘ease of doing business’ along with low data costs, improvised processes and ready adoption have created a thriving new ecosystem for employment – the gig and platform economy. Gig-economy jobs grew year-on-year by 13% and over 29.20 crore people have registered so far on the E-Shram portal. From 2016 to May 2022, ‘Hunar Haat’ has created employment avenues for over 10.5 lakh artisans and talented Vishwakarmas.

The continuing chain of beneficiaries in the government’s Gati shakti model include processes that act as catalysts for indirect job creation in sectors such as transport, logistics, mobility, food, consumer goods and manufacturing products. Up to 2021-22, 53,696 km of roadways were created which generated 21.8 crore man-days of employment. As mentioned before, round 6 crore people employed in unorganized sector between 2017-18 and 2019-20 have benefited from the SVANidhi Yojana – making PM Modi’s vision of Sabka Saath, Sabka Vikas, Sabka Vishwas aur Sabka Prayas a quintessential facet of employment for all.

People-first policies such as the flagship program for equitable housing, the PM Awas has created 2.39 crore indirect jobs up to 2022. Another great example of the ripple effect of employment generation can be seen in the form of Production Linked Incentive (PLI) schemes which enable the expansion of existing industries into larger ones, while promoting the creation of new ones. As an example, 5 lakh incremental jobs have been created in the mobile manufacturing sector due to PLI. As per the Economic Survey 2023, PLI schemes are slated to create 60 lakh jobs. In addition, India’s fintech adoption rate of 87% as against the world average of 64% has enabled the creation of an ecosystem that is touching the lives and livelihoods of all – including the self-employed and small business owners.

To this end, Rozgar Melas that aim to provide 10 lakh jobs in less than two years, and that meld employment opportunities and unique talent have been a boon for the economy. Rozgar Mela is a key step towards the fulfilment of the commitment to accord the highest priority to employment generation in the country. On 12th February, 2024, PM Modi distributed more than 1 lakh appointment letters to newly inducted recruits and also lay the foundation stone of Phase I of the Integrated Complex “Karmayogi Bhavan” to promote collaboration and synergy amongst various pillars of Mission Karmayogi. “Rozgar Melas are playing a crucial role in enhancing the contribution of our Yuva Shakti in nation building”, said PM Modi. Rozgar Mela will be held at 47 locations across the country this year with recruitments taking place across central government departments and state governments/UTs supporting this initiative. These melas ascribe gainful opportunities to the youth, the Amrit Generation, and create pathways for their direct participation in national development. Similarly, under the Prime Ministers Employment Generation Programme (PMEGP), over 43.77 lakh people have got employment and the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has led to the placement of over 24.51 lakh candidates.

As policy making becomes efficient, so do its representative tools; more than 19.9 lakh people have been placed in jobs through employment exchanges between 2017-2022. The government has incessantly been taking many measures to tackle unemployment issues and stem the unemployment rate. The Amrit generation is benefitting from a multi-pronged approach; if on the one hand, Scheme of Fund for Regeneration of Traditional Industries (SFURTI), has benefitted around 2.94 lakh from 2014-15 to December 2022, on the other hand, over 1.80 lakh new job-creators and entrepreneurs are now operating under the Stand-Up India scheme.

New India – Naya Bharat – is one that thrives on a developed mindset with the aim of making the country Atmanirbhar, and a Vishwa Mitra – one the world leans on. As an example of this commitment, in the current financial year, Khadi has achieved a historic milestone by generating over 9.54 lakh new jobs. Be it our push towards renewable energy, creating a decarbonized energy sector which ranks India is 4th globally or the reduction of unemployment rate in rural areas, (decreased from 5.3% in 2017-18 to 2.4% in 2022-23) the commitment of PM Modi’s government to decisively mitigate unemployment stays foremost.

A spurt in the employment index is predicated on employment mobility to higher productivity jobs, rising job rates in secondary and tertiary sectors, promotion of women as economic catalysts and the increased formalisation of the unorganized, informal sector. PM Modi’s government has consistently come good on all the parameters which is the reason why milestone, upon milestone, Bharat’s journey towards becoming Atmanirbhar and the world’s third largest economy, is only a matter of time.