The performance of the NDA II -(2014-till date)

The NDA II assumed power on 26th May 2014 and they came with huge expectations as the Indian economy was counted among fragile 5 towards the end of 2013. The GDP growth had come down towards the end of the term of UPA II. The rising discontent against the UPA II had brought NDA II under, Prime Minister Narendra Modi, to power.

The new government was expected to accelerate the reform process but instead, it followed the incremental approach of reforms. The GDP growth remained at the rock bottom level and the government changed the calculation methodology in order to show a better economic performance. However, the lack of jobs and the closure of SMEs meant that this government has not been able to deliver on its economic agenda. The ill-conceived, Demonetization, backfired and led to falling credit for small enterprises. The GST system which was implemented in July 2017, was far from satisfactory and it choked the engine of India's economic growth. 

The government seems to be more focussed on its social agenda of Ram Temple, Triple Talaq, Article 370 and the Citizenship Amendment Act. The government needs to learn from its failures and it should stop trying to divert attention from pressing economic issues. 

The future of the telecom Industry in India

The Indian telecom sector has gone through a period of turbulence over the last 4 years. The number of players in the sector has come down due to consolidation in the sector. Many companies declared bankruptcies as they could not compete against the aggressive low tariffs brought by Reliance Jio. Currently, there are just 3 private players and two PSU players(BSNL, MTNL). India has achieved around 90% teledensity but the mobile teledensity in rural India is just 60%. It is estimated that there are around 300 mn people in India who don't have a mobile subscription.

4G Mobile Internet has already made a huge impact on Indians as they use around 11GB of data per month and this has enabled the digital economy as people use different mobile applications for basic financial transactions. High-speed broadband Internet will lead to the entire world coming together to form a small village.

India is expected to have 3 private and one public player going ahead. It is expected that Vodafone Idea will be able to survive this AGR issue on account of timely aid from the government. The government has announced the merger of BSNL and MTNL and it should lead to the creation of a strong PSU player in the sector.

The way forward looks interesting as the sector will become the main driver of economic growth especially with the introduction of 5G internet, which will lead to the introduction of IoT, Autonomous driving and Connected cars.