*Paromita Das
The Modi government has taken some proactive steps to eradicate corruption from our system over the last 6-7 years. He is adamant about eradicating corruption at the grassroots level, so that every department can operate smoothly and without delay.
He is determined to simplify a process that appears to be so complicated that the average person feels harassed and misled. They are the middlemen, and they are the ones who make everything dirty and complicated. They intend to deceive and loot the common man.
The farm and the products of the farm
More than 90% of our farmers are from low-income families with little or no formal education. As a result, they have difficulty receiving benefits from the government’s various schemes. As a result, agents became involved. They provide farmers with quick cash and assist them in grading, weighing, packing, and selling their harvests to buyers. However, these services come at a much higher price than usual. The government has simply removed middlemen from the buying and selling of crops by enacting farm laws. “If farmers sell directly to buyers, the intermediaries will lose all relevance and earnings,” says Pranjal Sharma, an economist. Farmers can earn more and consumers can pay less by cutting out the middleman.”
Furthermore, the government has established a Ministry of Cooperatives in order to eliminate middlemen from other aspects of farmers’ lives.
Pharmaceuticals
While the use of agents doubled, and in some cases tripled, the price of products in the defense and agriculture sectors, the pharmaceutical industry fared even worse. A medicine that costs Rs 2 to make ends up costing a consumer Rs 100-120. Aside from that, rising hospitalisation costs had exacerbated the problems for the average patient.
The Pradhan Mantri Bhartiya Janaushadhi Pariyojana has made medicines more accessible to the general public. More than 7,500 Jan Aushadhi Kendras have been established for the general public. Until 2019, the initiative is said to have saved the common man more than Rs 1,000 crores.
Similarly, the Ayushman Bharat National Health Protection Scheme, which aims to protect over 10 crore poor Indian families, has been able to reduce hospitalisation and billing costs significantly. It has saved Indians a total of Rs 30,000 crore in just two years since its launch. Apart from the huge success of these two schemes, the opening up of the health insurance sector has helped middle-class Indians save a lot of money on their annual health expenses.
The labor sector
Informal labour still accounts for more than 90% of India’s workforce, despite the country’s 70-year independence. This led to infrastructure companies hiring daily wage labourers on a per-day basis. This process involved agents, who charged a hefty fee from companies, giving very little to actual labourers. The Modi government introduced fixed-term employment with the Industrial Relations Code of 2020.
· It gives employers the freedom to hire workers as they see fit.
· It eliminates the need for a middleman like an agency or a contractor.
· It also benefits the worker and helps to improve the working conditions of temporary workers, as opposed to contract workers who may not receive such benefits.
· The government recently launched the E-shram portal. More than 2.5 crore informal workers registered on the portal in less than two months. This will assist them in obtaining employment opportunities without the need for outside assistance.
Defense
Exporters of defense products to India had to go through a colossal amount of red tape, which could take years to clear. As a result, in order to complete their work as quickly as possible, they used to hire an agent in India who was close to the ministry. The entire process was slowly captured by these agents. By 2010, their involvement had resulted in a tenfold increase in the initial cost.
When Manohar Parrikar took over as India’s defense minister in 2014, he pledged to eliminate the middlemen. Recognizing the importance of agents in defense procurements, the government allowed companies to hire them, but only under certain conditions.
Companies must now submit the names and contact information of anyone, party, or firm who is assisting them in India. The specifics will include the full scope of the responsibilities assigned to the aforementioned party.
The Indian bureaucracy has always relied heavily on middlemen. Their contribution to India’s development has shifted from one of enhancement to one of impediment. PM Modi has launched a war against them, and early signs indicate that the era of the middlemen may be coming to an end soon.
Companies are now required to enter into a fixed contract with their agents, which includes a fixed payment. Previously, it was based on the deal’s cost, which caused agents to inflate the pricing mechanism involved in the deal.
Companies must produce all necessary documents for inspection if a law enforcement agency requests them. The government has the authority to order the agent’s removal based on the results of the inspection. Aside from that, the government is emphasizing Make-in-India defense products. There will be very few middlemen in the defense manufacturing process if it is done in-house.
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