The nation waited with bated breath for Prime Minister Narendra Modi’s speech on the last day of the year. While the November 8, 2016 speech was a bombshell that shook the nation, the year-ending speech was lacklustre and failed to ignite the imagination of even the most devoted Modi acolyte. The speech was an apology for the Demonetisation announced over 50 days ago with the promise of a better future post December 28 – the 50 day grace period that Modi sought from all Indians. Now four days after the grace period, nothing much has changed to make life easier for ordinary Indians who still largely survive on cash transactions. The embargo on withdrawals continue and ATMs are dispensing Rs 4500 as against the upper limit of Rs 2000 enforced post November 9. The new Rs 500 currency notes are still in short supply thereby creating problems for people with smaller transactions. Hence the nation continues to experience the pangs of demonetisation, not to speak of the economic slowdown experienced by businesses and corporate houses. But Modi knows his constituents too well. He is addressing the aam janta and the new schemes he announced on December 31 should keep them happy.
The new schemes under the PM Awaas Yojna, namely the home loans for poor and middle class people up to a limit of Rs 9 lakh will get a 4 % exemption on interest while those up to Rs 12 lakh will get a 3% interest waiver. This is expected to keep a large section of Indians happy. Modi has also addressed the farmer’s woes by waiving interest of 60 days for farm loans taken from district co-operative banks and co-operative societies. Also 3 crore Kisan Credit cards are being converted to RUpay Credit cards thereby digitising the transactions. Senior citizens will enjoy an 8 % interest on savings of up to 7.5 lakh deposit. Credit guarantee for micro, small and medium enterprises will be raised from Rs 1 to Rs 2 crore. Banks have also been told to raise the cash credit limit for small businesses from 20 to 25 %. An important announcement, however , is that pregnant women across India will be given Rs 6,000 in their bank accounts to take care of initial medical needs in the pre-natal stage.
The above sops may look insignificant but they will impact a larger constituency of Indians, many of whom fall below the poverty line. The assistance to pregnant women has come in for snide remarks from the middle class but in the real India where under-nutrition and malnutrition among pregnant women has pushed India to the level of Sub-Saharan Africa, this step may actually help to build up the health index of India and take it to a different level.