Thursday, October 29, 2015
It is extraordinary how quickly we believe smart slogans. Advertising and marketing are based precisely on the ability to win subscribers and getting them hooked through language and packaging. Prime Minister Narendra Modi has understood this all too well. When he spoke of aache din, he struck an immediate chord of empathy through the contrast with the previous four years. Similarly, his call for Swachh Bharat and Digital India resonated across socio-economic classes. People were hooked. This was political marketing at its best. His Make in India was cast in a similar mould.
But marketing gurus are also aware that advertising is not a substitute for the product. Consumers look through gimmickry because men cannot live by slogans alone. The unexpected defeat of the Vajpayee government in 2004 that rode on the crest of the India Shining wave ought to be a sobering reminder for the government.
After 18 months of Modi's government, for most Indians, barring the very rich, happy days continue to be illusory. The economy, which is poised to overtake China, and notch 7.5 percent GDP growth rate, owes much to falling oil prices and to a slowing down of the Chinese economy than to any economic reforms that have eased doing business in India. Taxation policies remain opaque and unpredictable and, thus, a clear disincentive for foreign investors. Even the bizarre retrospective tax, promulgated by the previous government, is yet to be amended.
Furthermore, for the aam aadmi, food prices—whether of onions or pulses—continue to rise. Social sector spending has drastically fallen, especially in health and education. At an entirely different level, even the very social fabric of India stands threatened with ministers and political allies making hugely irresponsible statements and indulging in acts of gross intolerance towards minorities, Dalits and dissenters. While the central government can, most certainly, take the plea that in a federal polity, it cannot be held accountable for everything that happens throughout the country, it ought to stir, if not shake, the government's conscience, especially when President Pranab Mukherjee finds it necessary to publicly remind the nation of the idea of India.
Modi's rise to the prime minister's post has been dramatic and meteoric. The distinct lack of leadership in the Congress has been helpful and Modi is, undoubtedly, looking at a second term. To achieve that, he most certainly needs to combine vision with strategy and decision making. If he would like India to emerge as an economic powerhouse, he needs to outline the roadmap as to how this would be achieved.
Consider his flagship Make in India programme, as an illustrative example. The shift from 'made' to 'make' was meant to woo foreign investors to make India a manufacturing base. But neither quality assurance nor skill development received the urgency that making in India requires. For foreign investors, this is clearly a major drawback. Nor has the government outlined the tax incentives that foreign investors would enjoy should they decide to make in India. Ministries continue to be unclear on the contours of the programme because it is yet to be publicly outlined to establish that it is in conformity with global trade rules. Unless there is visible clarity, the programme is destined to become a slogan.
Modi's advocacy of transforming India into a manufacturing hub can be exciting and most certainly gets us all hooked. After all, if it could happen—and there is no reason as to why it cannot—jobs would be created, foreign investment would flow in and economic growth would receive a substantial boost.
None of the above is likely unless a clear and transparent policy framework is outlined. Furthermore, the government needs focus, clarity and speed of execution. Additionally, it is important for us to be candid in our assessment of quality assurance and skill availability in India at present. No international brand is likely to stake its reputation on poor manufacturing. The series of crashes of Indian manufactured Dhruv helicopters in Ecuador and subsequent bad press demonstrates that Indian manufacturing is yet to meet international benchmarks.
The 'Make in India' example illustrates how the government has not backed its slogans with action, or vision with strategy. Over the past 18 months, the quality of life has not improved. Modi needs to urgently recognise that his persistent silence is likely to be construed either as utter disregard for alternate voices or an inability of getting his own voice heard by his party colleagues.
The next elections are not that distant. While the Congress is in disarray at, it is not inconceivable that elections could see the party split and the emergence of a new challenger. Modi and his team would, undoubtedly, heed the lessons of the Vajpayee defeat that slogans might win elections the first time around but consumers learn to avoid a bad product when it fails to meet expectations. It is hoped that he will demonstrate genuine leadership and translate his promises into action.
His reputation is dramatically flagging, even in the international space. Mr Prime Minister, a huge mandate was given to you to realise the aspirations of the Indian people. It can happen only when you realise that you are Prime Minister of all Indians. This lies at the core of transformational thinking and thus, leadership. Many call it the tipping point.