Budget 2024 & Beyond: PESTEL Steps for NDA Government for the Future of India
In the General Parliament Assembly Elections, LokSabha of India, the National Democratic Alliance (NDA) has proven its majority number to formulate the government for next five years. There are multiple tasks in front of the new government, here are some sector-wise changes that Indian economy needs for its growth. However, the economic changes stand-alone cannot bring the changes, they should be supported by the socio-political factors.
This article explores Political, Economic, Social, Technological, Legal and Environmental (PESTEL) factors that impact the country and country’s people and thus should be improved upon.
Political (P)
‘India, that is, Bharat, shall be the Union of States’, marks the Constitution of India while defining India. The same unity principle is applicable when it comes to polity or government. There are few national political parties and many regional or local political parties in India. This time when the government is in coalition, the regional parties have re-gained their stance in national politics.
It is imperative to include and consider the opinions of local parties as they are aware of the ground-level situation. The policies and schemes of the government unless they reach to the masses on ground are not fruitful. Therefore, a balanced approach should be adopted by national parties and regional parties through discussion about implementation of policies. This would offer insightful changes in the execution to bring about real result on the ground and also shall ensure political stability.
Economic (E)
The bright side of the economy’s story includes both domestic and external sector. Overall, the growth projections of the economy are on path where real GDP is posed to grow at 8.2% in 2023-24; the foreign exchange reserves are $651.5 billion as of 31st May 2024; Current Account Deficit (CAD) reduced to 1.2% of GDP; annual inflation rate as of April 2024 reported to be 4.83%, little closer to RBI’s target range of 2%-4%; the urban unemployment rate is at 6.7% in the quarter of January to March 2024.
The alarming aspects are inflation rate in rural areas, 5.43% is higher than urban areas 4.11%; the unemployment rate among youth is worrisome given the demographic dividend which India is yet to utilise fully; job creation and per capita income is lagging behind compared to the growth.
For agricultural sector, the e-NAM should be promoted extensively. For manufacturing sector, sector-wise analysis of intermediate goods and its provision should be conducted. For service sector, the companies should be promoted like Global Champions and they should be supported for expansive outreach programme in the global market. To bring the macroeconomic stability, the economy needs to come back to its path of fiscal consolidation.
- Social (S)
There is a dire need of reducing the gap between people and getting hold over the widening inequality in the country. One of the ways to do it would be providing a greater number of opportunities. It would be mammoth task to undertake for pan-India level but micro-level tasks can help.
Here, the 73rd and 74th Amendments in the Constitution of decentralization of the government can come to the rescue. The identification and analysis of ground-level inequality should be given to the Local Governance Bodies to capture the variations and socio-cultural complexities of a particular place. Then policies should be formulated to address these inequalities but Local Governments should be included in formulation and implementation of policies.
Further, the implementation of National Education Policy 2020, should attempt to reduce the gap between quality of basic education such as reading, numerical skills at least on State-level.
Lastly, the fourth important sector of the economy is Cooperative that provides employment and income to approximately 17.80 million people throughout India. This potential of the sector can be unleashed to reduce income inequalities and lead on the path of societal progress.
Technological (T)
Indi has initiated its steps towards semiconductors through three factories that are getting set up in the country. Similarly, for Critical emerging Technologies (CETs), India should initiate a partnership with prominent countries in that technology domain or propose it in the G20 forum as a part of developmental partnership or conduct competition among Indians and provide the winner full financial support.
Environmental (E)
India has been trying to follow its mandate of COP26 or Paris Agreement. The next step should be conducting studies to assess the impact of these initiatives to combat climate change. From the findings according changes should be made so as to reach meaningful target.
Legal (L)
The legal reforms including land law; labour law should be implemented as quickly as possible with Consultation of the State Governments. There is a need to look at the procedural delays of pending cases in the courts.
Most importantly, for all PESTEL factors, whatever changes that shall be undertaken authentic information dissemination to public needs to be revamped for the masses. It should have Central government and State Governments on one page to avoid unnecessary conflicts that are caused by information manipulation. There should be maximum level of transparency maintained between the people in the country and the government.
It is evident that PESTEL factors are corelated with each other and together they create a secured environment and system in the country. This secured environment shall allow the country and people in the country to progress and prosper further.
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