Why is Citi not very happy with BJP manifesto

Why is Citi not very happy with BJP manifesto

The Bharatiya Janata Party’s manifesto which was released on Sunday, promises a host of reforms and schemes, but skipped any reference to structural economic reforms like tweaks to labour and land laws, Citi economists wrote on Monday.

Prime Minister Narendra Modi-led NDA is seeking to come back to power for the third consecutive time. However, the party’s manifesto for the upcoming Lok Sabha polls was devoid of any ‘big-bang’ structural reforms.

The party has promised to create jobs, boost infrastructure and manufacturing and expand welfare programs such as low-ticket subsidised loans to small businesses through the MUDRA program, work on providing more bullet trains if it wins a third term.

“It could be a bit of a disappointment that the “big-bang” structural (but contentious) reforms of land, labor, agriculture, privatization, opening up to foreign investment etc did not find any mention in the manifesto,” Reuters quoted Citi economists Samiran Chakraborty and Babar Zaidi as saying.

However, they feel that these measures could be announced at a later stage.

Economist Swaminathan Aiyar told ETNow that fundamentally, the BJP manifesto is more of the same, however it could see some scaling up.

Voting for the national election begins on April 19, proceeding through seven phases until June 1, with anticipated results on June 4.

Expectations are ripe for Modi to continue holding his position, with some expecting the BJP to comeback to power with a stronger mandate than in 2019. People are seemingly happy with Modi’s 10-year record, which includes strong economic growth, infrastructure projects and welfare handouts.

“At a broad level, the manifesto is more tilted towards continuity than change,” Citi said in its note.

BJP’s manifesto talks up a robust emphasis on infrastructure development, entailing the construction of 28 kilometres per day of national highways, introduction of three high-speed bullet trains, and expansion of the metro network.

“There is a definite aspiration in the manifesto towards making India a power to reckon with in global manufacturing,” Citi said.

Titled “Modi’s Guarantee,” the manifesto predominantly reinforces the government’s current welfare programs aimed at diverse societal segments. It also reaffirms the BJP’s dedication to implementing “one-nation-one-election” and a Uniform Civil Code, both previously outlined in its 2019 manifesto.

During his address, Modi primarily emphasized his vision for enhancing the nation’s progress, emphasizing that the manifesto mirrors the ambitions of a youthful India by prioritizing the quality and dignity of life and aiming to provide abundant opportunities, both in terms of quantity and quality, for the younger demographic.

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