One year of NDA government: Modi more confident of India's place in the world than Congress

By Seema Sirohi
I imagine Prime Minister Narendra Modi is planning to sit back, have his "Wah, Taj" moment with a cup of strong chai and ruminate about his first year in office. Apart from the tea, would he feel satisfied? Looking at it from this end, he certainly has revved up the India story abroad — almost willing it back to life with sheer energy. He began with a bang, surprising the international commentariat by inviting the entire neighbourhood to his swearing-in ceremony, he travelled relentlessly (18 countries, including China), he visited friends both big and small, he coaxed, he (over) promised and he engaged non-stop.

If the first year was reintroducing a "new" India, no question the second is going to be about "delivery." Expectations are high and disappointment lurks just around the corner.

But it must be acknowledged that Modi has begun changing the way India looks at itself and the world. He is more confident of India's place in the world than the Congress brand managers. Both the terms of engagement and the terminology are different.

There is less hesitancy in stating Indian positions even if they rub the partners the wrong way. There are fewer roundabouts and more straight crossings. Deal-making is becoming a greater part of the Indian foreign policy mix. The terminology has changed from "emerging" to a "leading" power. The sure-footed Indian response in evacuating citizens and other nationals from Yemen and the relief operations in Nepal — albeit with a few missteps — gives a good account that India can act, defend and provide in the neighbourhood and beyond.

With the United States, Modi concluded two summits in quick succession, delivering a masterstroke by inviting Barack Obama as the first US president to be the chief guest for India's Republic Day. The White House responded even though certain pressure groups within and outside the Democratic Party still find Modi unacceptable. Obama's little foray on teaching India the value of religious tolerance in his Delhi speech and then repeating it at the Washington "prayer breakfast" was largely their brief. This will continue to be an issue.

But by and large the administration and the US Congress consider Modi to be a man who can get things done. On the political and defence front, India and the US are moving at a good clip driven in part by China's aggressive signals.

The Americans were struck by Modi's decision to issue a separate statement on "US-India joint strategic vision for the Asia-Pacific and Indian Ocean Region," not something the UPA would have done. It names and lists everything that every Asian country worries about in Chinese behaviour patterns.

To make Indo-US defence cooperation smoother, Modi also seems willing to sign what the US government calls "foundational agreements." The alphabet soup of agreements (BECA, CISMOA and LSA) would make sharing of classified information and sensitive technology easier. His top aides are looking at this longstanding US request. The Vajpayee government had agreed on the texts and was ready to sign after the 2004 elections but the BJP lost. The UPA government considered the agreements needless and ignored them.

Modi has also moved quickly to renew the landmark Defence Framework Agreement for another 10 years — it's expected to be signed early June when defence secretary Ash Carter visits India. The Defence Trade and Technology Initiative for joint production and development of defence projects is finally up and running. All good and commendable. But on the economic front, the news is not as encouraging.

Doubts are surfacing in Washington although not articulated in public. Yet. Privately many say that "tax terrorism" against global investment funds continues. The minimum alternate tax claims against big FIIs has led to talk of a bear phase after an exuberant bull run when Modi was elected.

The shine is coming off a bit and perception is gaining that India's tax policy is filled with contradictions. The biggest tax reform (GST Bill) has been delayed by the Rajya Sabha. The Land Acquisition Bill has been referred to a joint committee of Parliament.

Incremental reforms and better implementation of old UPA policies is well and good but where is "the vision thing?" Why no reforms in the education and health care sectors? Modi's style of functioning is also getting a fair share scrutiny. The thin intellectual bench of the BJP is worrisome. Overreliance on a few "trusted" souls may have worked for Gujarat but it won't work for India. Putting pressure on bureaucrats can result in overpromise and under-delivery.

Was it a year of living dangerously?