1. PM Modi addressed the nation on Saturday, December 31, 2016 and announced various schemes and rebates for farmers, women, home seekers and entrepreneurs. With UP elections expected in January 2017, these sections are the biggest target groups and their need is important to be addressed.
  2. He started with thanking the people for “redefining the concept of sacrifice” with their willingness to brave long lines at banks to get cash and said that there is no precedent globally to what India has awas yojana
  3. A rebate of 4 % on interest rates to the people who seek loans of up to Rs 9 lakh and 3% percent on Rs 12 build their houses in 2017 has been announced. This move is not so charitable as it seems.
  4. It serves three purposes for the government. One, it would help the government’s vision of PM Awas Yojana and construction of pakka houses would reduce slum, poverty and improve health indicators. On the other hand, due to demonetization, Banks have surplus cash but no takers. This interest rebate would pick up bank’s business again and address their NPA problem. Lastly, the populistic move is aimed at ensuring electoral victory.
  5. PM announced that the government would also build 33 per cent more houses in the villages under the Pradhan Mantri Grameen Awas Yojana and those who want to modify their building or houses, would get three per cent concession on loan of upto Rs 2 lakh. These announcements serve the same purposes.igmsy
  6. All pregnant women will get Rs 6,000 in their bank accounts. Though it is an attempt to reduce child and woman mortality but there is nothing new here. Under Indira Gandhi Matritva Sahyog Yojana (IGMSY), the beneficiaries also get Rs. 6000 in two installments. The only difference is that here the government is disbursing the cash directly into the accounts.
  7. Government to pay interest for 60 days on loans taken by farmers for Rabi season from district cooperative banks and societies. This was required as because of the demonetization farmers were left cashless and undue loan had to be borrowed to initiate the sowing process. Moreover UP election angle is also in the government’s mind. Moreover in the next 3 months, 3 crore Kisan credit cards will be converted to Rupay debit cards. Farmers are the biggest targeted group in the Modi announcements.
  8. Small traders were the most affected by the demonetization. To please them, Credit guarantee for small traders is to be raised to Rs 2 crore from existing limit of Rs 1 crore.
  9. For senior citizens. they will benefit from a fixed interest rate of 8 per cent on deposits up to 7.5 lakhs and for the common man, starting January 1, 2017, the daily limit on ATM withdrawals will go up to Rs. 4,500 rupees from Rs. 2,500, but the weekly cap on withdrawals from bank accounts is still capped at Rs. 24,000.
  10. Common man woes are ending but they are fighting the challenge with all their grit and commitment with all efforts towards a better nation. They are supporting the government and the government is expected to reciprocate and therefore more reforms are needed such as reduction in Income tax rates, Lower corruption, lower property prices among others.
  11. PM had a very calibrated announcement for different sections of the society so that both Economy and Political  issues are addressed.
  12. As far as Economy is concerned, undoubtedly the GDP growth rate will see a downward trend in the next few quarters but as far as politics is concerned, only time will tell the nation’s mood, one in January for UP and the other for the country in 2019!