Economy to environment - Modi government policies are all smoke and mirrors
There is little doubt that demonetisation was a fiasco. And now, the Goods and Services Tax (GST) has turned out to be a debacle. So much so that finance minister Arun Jaitley had to slash GST rates on many items because traders, restaurants and malls found that the tax was hurting their incomes.
Moreover, there is still no clarity about any reduction in price of petroleum products, which don’t come under the ambit of the GST. Petrol and diesel prices have risen ever since the oil companies in June moved to a system of daily changes in prices.
A recent surge in global crude oil prices threatens to disrupt the Narendra Modi government’s fuel subsidy math. Already, high fuel imports have helped widen the trade deficit in October to $14 billion from about $9 billion in September.
This is not all. Retail inflation in October accelerated to a seven-month high while industrial production slowed in September from the previous month. Growth in eight core industries eased from 5.3 per cent in September 2016 to 5.2 per cent in September 2017, dragged down by a sharp drop in fertiliser output.
Not only is the economy not booming, but more serious issues have come home to roost. Environmentalists and green bodies - from TERI to Sunita Narain's Centre for Science and Environment - have been warning about an impending ecological catastrophe for decades. While much has been made of the pollution in the Delhi-NCR region caused by burning of agricultural waste in neighbouring states, which occurs twice a year, the Centre has not showed any urgency in providing a subsidy to the farmers to go in for compost, and other environmental-friendly technologies.
The politicians, as usual, are blasé. Union environment minister Harshvardhan dismissed the ecological crisis as a mere scare. This is typical of the political class. What about vehicular pollution? The BS-6 standard for vehicle engines has not yet been adopted. It will take more than a year’s time. Why is there so much delay in adopting a new emission standard for vehicles? There are hybrid engine cars on the roads, like the Toyota hybrid, and Reva - which runs on the electricity - produced by the Mahindras.
For decades, environmentalists have warned of the need to provide clean petrol and diesel fuels, as this would significantly reduce vehicular pollution. Other countries subsidise the purchase of “clean” vehicles. No such policies in India. And phasing out of 10-year-old diesel and 15-year-old petrol cars, may well end up in these cars getting sold in neighbouring states. The pollution would be transferred, not diminished.
Even a small country like Singapore has clamped down on pollution. There is an environmental tax on vehicles, and strict controls on vehicular emissions. Drivers who go to the busy areas of the city-state have to pay a fee. Lighting a fire in the open is strictly prohibited. There is an ongoing policy to further reduce pollution. The difference in the methods and the anti-pollution drive in Singapore, clearly show the stark lack of commitment in our country. Many politicians feel that the pollution crisis is for a matter of only two months at the most. Nothing very critical.
The National Green Tribunal (NGT) has tried its best, but it needs to be strengthened. There should be more benches of the NGT in all states and Union Territories. The environmental laws should be made stricter and include major fines, including on lax and wayward governments. This current crisis in the NCR is a severe warning. Senior doctors and representatives of the Indian Medical Association have strongly warned of the dangers of this type of pollution. Doctors urged that children should not be sent to school, as long as the crisis persists. This advice has largely been ignored.
It is clear that the civil society must intervene. The resident welfare associations, mohalla committees and other residential bodies should check that road dust, garbage, vehicles emitting inordinate black smoke, the cleaning of roads with water spraying vehicles, and minimum use of diesel generators are regularly monitored. A widespread calamity requires strict and urgent action. This urgency has yet to be seen. Earlier, there were many warnings about mosquito-borne dengue and cerebral malaria. With the season getting over, this threat is being forgotten.
As the famous proverb goes, “Those who do not learn from history are doomed to repeat it.”