Big Step Forward : PM Forms 2 Cabinet Panels to spur Investment and Job | News Cover

News Cover: Prime Minister Narendra Modi on June 5, 2019, set up two cabinet committees, one dealing with investment and growth and another on employment and skill development-signaling his intent to tackle the two critical challenges confronting the economy.

• The decision to set up the panels came along with the reconstitution of the Cabinet Committee on Security (CCS) to reflect changes in the government's top deck. Headed by Modi, CCS will have defense minister Raj Nath Singh, home minister Amit Shah, finance minister Nirmala Sitaraman and external affairs minister S. Jaishankar.  

• Modi, who was far from forming many cabinet committees in his first term, decided to set up groups dedicated to a more focused approach to tackling growth concerns and job shortages. Economic growth has slowed in the recent quarter, which declined by an 18-quarter minimum of 5.8% in the fourth quarter of the last fiscal year. The unemployment rate is seen at a high level for many years, which in turn will affect job creation and cost more.

• Economists have argued that the government should focus on increasing costs immediately in order to reduce auto sales with consumer goods companies, as consumer goods companies complain incessantly.

• The cabinet committee on investment and growth will have transport and MSME minister Nitin Gadkari as a member apart from Shah, Sitharaman, and Goyal, indicating that the government wants to spur investment in the manufacturing sector.

• Experts lauded the move and said it signaled the government's commitment to step up growth and create jobs. "Formation of these two committees indicates the commitment of the new government to attract FDI into India, boosting infrastructure development and job creation avenues," said Kaku Nakhate, President & India country head, Bank of America. 

• On the other hand, Narendra Singh Tumor, Dharmendra Pradhan, Ramesh Pokhrial 'Nishank', Mahendra Nath Pandey, Santosh Gangwar and Hardeep Puri besides Shah, Sitaraman and Goal are present in the panel. In the first period, there was an emphasis on developing skills for the Modi administration.