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Retrospective tax hit investment: Narendra Modi

BS Reporter New Delhi
Last Updated : Apr 01 2014 | 1:20 AM IST
Narendra Modi, the Bharatiya Janata Party (BJP)'s prime ministerial candidate, on Monday criticised the United Progressive Alliance (UPA) government's retrospective tax legislation, saying it had wrecked investor confidence. He also slammed the government's social welfare policies, saying these bled government coffers and were merely aimed at creating vote banks.

Modi, in an interview to ETV recorded on March 27 and telecast on Monday, identified growth in joblessness as the biggest challenge facing India. He said if the BJP came to power, it would create employment, rein in inflation, boost skill development initiatives, spur growth in manufacturing and farm sectors, take steps for women's empowerment, work towards better national security preparedness, repeal archaic laws, encourage federalism in economic decision-making and modernise India's police force.

In the interview, Modi, who started his life as a Rashtriya Swayamsevak Sangh (RSS) worker, credited the Sangh for having influenced his value system the most. He said Swami Vivekananda was his role model and counted former prime minister Lal Bahadur Shastri as the political leader he admired the most. He also hinted at admiration for the way former prime minister Indira Gandhi had handled issues of national security.

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He tried to dispel the perception that he was dictatorial, saying he was a good listener and tried to build consensus. "My opponents can't find any serious allegations against me. So, they come up with such non-serious allegations. One individual cannot achieve what we have achieved in Gujarat. The success in my state is not mine, but that of team Gujarat, which comprises several competent people," he said. "I listen to all and build consensus. This is the only (leadership) technique I know. But when a decision is reached, I use all my energy to implement that." On economic issues, Modi said the decision on retrospective tax was ill-advised. "We shouldn't take decisions with retrospective effect. We need to create confidence in our system, which such decisions defeat," he said. He was also critical of social welfare schemes, which he said were aimed at creating vote banks but did little to contribute to economic growth.

He bemoaned the lack of transparency in the country and the delay in clearing files, saying that projects were delayed on the pretext of environmental clearances was unfortunate. "There is a need to reduce human intervention and introduce technology to instil transparency in our system and build international confidence," he said, adding while it was true there was much lawlessness, there was also a need to have "less laws".

Modi said the coming Lok Sabha elections were an opportunity to rid the country of vote-bank politics, bad governance, dynastic rule, corruption and misuse of constitutional institutions. He said the "biggest crisis" was people had lost confidence not only in the institution of prime minister, but the "very institution of the government". "The country hasn't seen such a naked dance of corruption as it has during the last 10 years," he said.

Modi cited the BJP governments in Rajasthan, Madhya Pradesh and Chhattisgarh as having delivered on their promises.

He said a BJP government at the Centre would work to boost farm and manufacturing production. "We need to think new. It is the misfortune of the country that the poor farmer has to resort to distress-sale of his produce, in the absence of storage facilities. Even the annoyance and displeasure by the Supreme Court fails to move this insensitive government. They let the crop rot and finally, the poor farmer has to sell it to distilleries for a pittance," he said.

On women's empowerment, he said, "Discrimination against women and the girl child should end. We need to work at the social, cultural and educational levels to address this. A woman should have the freedom to choose her career, at what age she wants to marry, whether she wants to marry at all, whether she wants to have two or three children or none at all. We need to inculcate this in our society."

He said the UPA government had failed on the security and foreign policy fronts, citing the "tension" between Defence Minister A K Antony and the armed forces. "The strained relationship between the government and the armed forces is unacceptable," he said, adding steps such as counting the number of Hindus and Muslims in the defence forces were unheard of. He said to counter the challenge of China, Pakistan and Afghanistan (after US forces left that country), defence preparedness had to improve. "We have failed to modernise our defence equipment. There is an urgent need to modernise our forces and inculcate discipline."

He said though he believed in a divine power, he wasn't someone who had a transactional relationship with God. He didn't visit temples often or do aarti "as if God is our agent", he said, adding he found it strange that people took potshots at his sartorial choices. "I wear khaddar. My spectacles are simple enough, not any expensive brand," he said.

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First Published: Apr 01 2014 | 12:56 AM IST

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