BPR by Modi Government, 1st Edition

•Author : Dr Abhijeet Shivane

shivaneabhijeet@gmail.com,
abhijeet@imdr.edu

Generally businesses undertake initiatives like business process reengineering to drastically

improve their business processes which leads to growth and development of their businesses.
Few examples may be implementing changes like ERP, Getting ISO certification, in
education - going for NBA accreditation.

Government in particular in India never used to take rapid actions which may lead to drastic
changes. Even if a change is initiated it used to take years together to actually implement the
change. The best example is digitalization of the public sector banks (Core Banking). It
started in 80's and ended in 2010. It took around twenty years to implement change. Such
changes which get delayed become expensive and some times obsolate.

In comparison to this government of India particularly Modi Govt's series of initiatives like
Demonitization, GST and Introduction of Insolvency and Bank Corruptcy Code Bill have
proved to be Business Process Reengineering- processes for rapid overhaul of Indian
Economy and BankingSystem. It is not a single decision. It was a series of decisions which
led to success.

If you look at history only Narsimha Rao had taken such step by signing GATT agreement
which led to development of Indian Economy.That decision was very much necessary in
those days so it was taken under economic crisis situation.

The second milestone in indian economy is Modi Govt's decision of Demonization.

Demonitisation did not have helped indian economy if it would have not been backed by
digital transactions and GST implementation. Use of technology for paperless transactions
has helped govt in implementing the decision properly. Earlier in 70's when Moraraji Desai
government had done Demonitisation, resulted into failure and unrest among people because
there was no technology back up like digital platforms (UPI, Debit , Credit Cards, Internet
banking etc). As digital platforms are available today , young Indians like it, has led to
success of Demonitisation. The money which was not in formal economy had come into
formal economy.

This will really increase our GDP. Indian people are rich but most of the money used to flow
through unorganized informal economy which used to portray a wrong and poor picture of
Indian economy.

People think that demonitization has failed but it is not true. It has helped banks, Home loan
interest payers and as a whole in improving revenues of the government.

As revenue increases there are better chances of development.

The next important decision was GST. This has streamlined the economy and today we see
that products are sold with identical price throughout the country. One country one product
,one price.
It will lead to proper pricing and manufacturing strategy of manufacturing units as there is no
difference in taxation. It will also lead to better economy.

Another important decision is proper enrollment of unorganized sector workers for payment
of provident fund , group insurance and all such benefits.

Overall government had overhauled these processes which will lead to healthy economy. It is
definitely going to increase revenues and had brought many non tax payers into income tax
ambit.

This is a business process reengineering in government processes of taxation and revenue

generation which will lead to disciplined economy.