)
The Aam Aadmi Party (AAP) wants to shed the perception that it is anti-business. AAP’s ‘Economic Agenda’ document declares the party “is neither Left nor Right and will support every good idea, old or new, if it is in the interest of India.”
According to this document, AAP doesn’t stand for all that many assumed it did. For instance, the document says the party believes in encouraging private enterprise, promoting a simple and progressive tax structure and encouraging private sector investment in the health and education sectors. Curiously, the party is against government dole.
The AAP document says it does not support social security policies that “induce greater dependency” among the poor. It doesn’t specify such policies but terms these as “lip service”. It claims the party believes “the poor are best helped by empowering them with enhanced capability and the means to earn their livelihood with dignity”. It does, however, want to explore the option of starting food kitchens, that is provide ready-to-eat food to the extremely poor.
The document says the party’s economic vision is “rooted in decentralised good governance, transparency, accountability and equity”. It says the AAP will continuously refine its economic model as “it involves a growing cross section of Indians in the policy-making process and incorporates evidence based learning”.
The party’s key leaders have launched an outreach effort to send across this basic message of the AAP being anti-crony capitalism but in favour of economic liberalism.
AAP convener and former Delhi chief minister Arvind Kejriwal’s speech at the Confederation of Indian Industry (CII) on Monday in Delhi and chief spokesperson Yogendra Yadav’s interaction with leading industrialists in Mumbai on Thursday were attempts to dispel the perception that AAP was against private enterprise or big business.
According to key strategist Ajit Jha, the party’s list of Lok Sabha candidates is also an effort to fight the perception that the AAP is a party of a particular ideological leaning. “Our aim is to put in motion a process of national renewal and for this, we need people from diverse backgrounds to come on a common platform.”
The AAP’s first list had names of social activist Medha Patkar and former banker Meera Sanyal, while its second list is likely to have names such as Adarsh Shastri and Rajmohan Gandhi. Shastri, Lal Bahadur Shastri’s grandson, quit a lucrative job at Apple to join the party.
Interestingly, Patkar had led the movement against Enron power project in mid-1990s in Maharashtra, while Sanyal was with one of the banks that helped finance that project.
The document’s other key points include a commitment towards job creation and doubling per capita national income in eight years by encouraging honest private enterprise and contain inflation between three and six per cent.
The document says the AAP will aim to increase the tax-to-GDP ratio from 11 per cent to 18 per cent in eight years by enforcing better compliance and increase the share of direct taxes to 65 per cent. It is currently 55 per cent.
Significantly, the AAP says it is not against public-private partnerships as long as they are fair. It also favours permitting insurance companies, pension and provident funds to finance infrastructure.
The AAP’s Economic Agenda claims the party “believes in an open-minded, solution-driven approach that is not limited by ideological orthodoxies in both domestic and international economic governance”. Jha says 19th or 20th century ideological epithets should not be used to describe the party. He says AAP is in search of people such as Jamnalal Bajaj, the industrialist who joined the Independence movement as a full-time activist, serving jail terms and undertaking fasts. Incidentally, Bajaj’s grandson Rajiv recently said he was a fan of Kejriwal.
Notably, the document is silent on the issue of foreign direct investment (FDI) in retail or on the larger issue of FDI. However, Shastri told Business Standard that a party committee was studying the issue.
He claimed AAP was principally “not against investments of any sorts”, whether Indian or foreign, as long as these were good for the country. He said the UPA government’s decision on FDI in retail was taken in haste, but the party would “certainly review” its opposition to FDI in retail if in deeper analysis “we feel it is in the larger interest”.
On job creation, the document says India has over 10 million youth seeking jobs every year. It says AAP will foster enabling honest enterprise across agriculture, manufacturing and services and will be geared towards creating increasing employment and livelihood opportunities.
It would seem India’s demographics with a majority of its population below 35 years and AAP’s largely urban electorate base may have compelled the party to undertake a drastic course correction to shed its anti-business and private enterprise image it earned after disallowing FDI in retail in Delhi and batting for water and power subsidies.
The vision document says AAP “believes that India needs to evolve a distinctive development model, given the aspirations of India’s citizens and the scale and complexity of its challenges”.
According to this document, AAP doesn’t stand for all that many assumed it did. For instance, the document says the party believes in encouraging private enterprise, promoting a simple and progressive tax structure and encouraging private sector investment in the health and education sectors. Curiously, the party is against government dole.
The AAP document says it does not support social security policies that “induce greater dependency” among the poor. It doesn’t specify such policies but terms these as “lip service”. It claims the party believes “the poor are best helped by empowering them with enhanced capability and the means to earn their livelihood with dignity”. It does, however, want to explore the option of starting food kitchens, that is provide ready-to-eat food to the extremely poor.
The document says the party’s economic vision is “rooted in decentralised good governance, transparency, accountability and equity”. It says the AAP will continuously refine its economic model as “it involves a growing cross section of Indians in the policy-making process and incorporates evidence based learning”.
The party’s key leaders have launched an outreach effort to send across this basic message of the AAP being anti-crony capitalism but in favour of economic liberalism.
AAP convener and former Delhi chief minister Arvind Kejriwal’s speech at the Confederation of Indian Industry (CII) on Monday in Delhi and chief spokesperson Yogendra Yadav’s interaction with leading industrialists in Mumbai on Thursday were attempts to dispel the perception that AAP was against private enterprise or big business.
According to key strategist Ajit Jha, the party’s list of Lok Sabha candidates is also an effort to fight the perception that the AAP is a party of a particular ideological leaning. “Our aim is to put in motion a process of national renewal and for this, we need people from diverse backgrounds to come on a common platform.”
The AAP’s first list had names of social activist Medha Patkar and former banker Meera Sanyal, while its second list is likely to have names such as Adarsh Shastri and Rajmohan Gandhi. Shastri, Lal Bahadur Shastri’s grandson, quit a lucrative job at Apple to join the party.
Interestingly, Patkar had led the movement against Enron power project in mid-1990s in Maharashtra, while Sanyal was with one of the banks that helped finance that project.
The document’s other key points include a commitment towards job creation and doubling per capita national income in eight years by encouraging honest private enterprise and contain inflation between three and six per cent.
The document says the AAP will aim to increase the tax-to-GDP ratio from 11 per cent to 18 per cent in eight years by enforcing better compliance and increase the share of direct taxes to 65 per cent. It is currently 55 per cent.
Significantly, the AAP says it is not against public-private partnerships as long as they are fair. It also favours permitting insurance companies, pension and provident funds to finance infrastructure.
The AAP’s Economic Agenda claims the party “believes in an open-minded, solution-driven approach that is not limited by ideological orthodoxies in both domestic and international economic governance”. Jha says 19th or 20th century ideological epithets should not be used to describe the party. He says AAP is in search of people such as Jamnalal Bajaj, the industrialist who joined the Independence movement as a full-time activist, serving jail terms and undertaking fasts. Incidentally, Bajaj’s grandson Rajiv recently said he was a fan of Kejriwal.
Notably, the document is silent on the issue of foreign direct investment (FDI) in retail or on the larger issue of FDI. However, Shastri told Business Standard that a party committee was studying the issue.
He claimed AAP was principally “not against investments of any sorts”, whether Indian or foreign, as long as these were good for the country. He said the UPA government’s decision on FDI in retail was taken in haste, but the party would “certainly review” its opposition to FDI in retail if in deeper analysis “we feel it is in the larger interest”.
On job creation, the document says India has over 10 million youth seeking jobs every year. It says AAP will foster enabling honest enterprise across agriculture, manufacturing and services and will be geared towards creating increasing employment and livelihood opportunities.
It would seem India’s demographics with a majority of its population below 35 years and AAP’s largely urban electorate base may have compelled the party to undertake a drastic course correction to shed its anti-business and private enterprise image it earned after disallowing FDI in retail in Delhi and batting for water and power subsidies.
The vision document says AAP “believes that India needs to evolve a distinctive development model, given the aspirations of India’s citizens and the scale and complexity of its challenges”.
AAPNOMICS
What the Aam Aadmi Party promises to do if voted to power in the LS polls
What the Aam Aadmi Party promises to do if voted to power in the LS polls
Inflation
>> Contain inflation between 3 and 6%; Food inflation below general inflation
Tax
>> Simple, progressive and stable tax structure with lower tax rates and minimal exemptions
>> Tax to GDP ratio from 11 to 18% in eight years; increase share of direct taxes to 65% in eight years
Trade
>> Review existing bilateral and multilateral agreements to negotiate greater autonomy for India
>> Priorities to bridge the Balance of Payment deficit
Public Distribution System
>> Not pay lip service to social security measures that induce more dependency
>> Reduce number of BPL households without ration cards or access to PDS close to zero
Agriculture
>> Aim to increase agricultural productivity by 50% in below world standards crops
>> Facilitate formation of commodity co-ops, working along common shareholder principles
Manufacturing
>> Increase share of organised labour in workforce
>> Reduce work-related accidents by 50% within 2 years
Infrastructure
>> Promote PPPs in a fair and transparent manner
Technology
>> Make govt 100% IT-enabled
>> Install wifi hubs in public spaces in city/town and village with free access
Other agendas :
>> Promote entrepreneurship
>> Curb monopolistic and anti-competitive forces
>> Improve India's Ease of Doing Business rank to under 50 within top 3 in emerging nations by 2022
>> Special focus on tourism with huge potential for growth, employment and investment
