BackOpinion | The PM’s assurance
The theme of Modi's speech was 'better future', and he also referred to an old problem of heavy-handed governance
PremiumSpeaking at the Hindustan Times Leadership Summit on Friday, Prime Minister Narendra Modi had a message of reassurance for bankers in India. Genuine business decisions, he said, would not be put under the investigative scanner, so they should extend loans without fear. It was the government’s responsibility to support executives doing their job for the country’s progress, the Prime Minister said, adding that he himself would see this done. The theme of his speech was a “better future", and he also referred to an old problem of heavy-handed governance. The sooner a government got out of people’s lives, said Modi to rousing applause, the better it would be.
What stands out in these statements is an acknowledgement of the need for greater agency exercised by economic players and individuals without the worry of someone looking over their shoulder. What is of significance is the context in which this has been articulated. Observers of the banking sector have reported that the spate of loan defaults and related probes has frightened lenders into acting with such caution, that credit disbursals have turned sclerotic. With suspicions rife of the quality of even well-rated debt, this risk-off mode is said to have spread across various other financial sectors as well. The Prime Minister’s emphatic words were aimed squarely at easing anxiety among bankers.
What deserves greater attention, however, is the broader thrust of what Modi said—his point about a diminishing role of government in the daily routine of citizens. “Minimum government, maximum governance" was a mantra of his 2014 campaign. It’s never easy to achieve. But, if applied well, it would do India a good turn.
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