However, by August 15, the Independence Day, the nation was rudely reminded of the basic ills afflicting it even after 62 years of freedom - whether it is agriculture, education, health or rural and urban infrastructure or the massive backlog in litigation. The Prime Minister's traditional address from the Red Fort struck a relatively sober note, conscious as ever as he is about the wide gap between promise and performance, by again listing the basic socio-economic problems and the solutions being attempted. To complicate matters, a serious drought has overtaken the country, and the Prime Minister acknowledged that it would further worsen the price situation.

The challenging tasks of social empowerment and meeting the rising expectations of people were equally underlined by the President Mrs. Pratibha Patil in her eve-of-independence day broadcast. She called for an effective governance system, more transparent and accountable, to ensure optimal level implementation of flagship programmes and reaching the amenities and services meant for the people, rural and urban. Funds for these programmes could not be allowed to be pilfered through corrupt practices, she warned.

The first budget session under the new dispensation was more business-like and the BJP-led opposition, still nursing the wounds of its electoral defeat, and other regional parties went along with Government for smooth passage of the highest-ever Union Budget of Rs. ten trillion with a record deficit of 6.8 per cent of GDP in 2009/10. The budget provided further stimulus to boost demand and investment and with the loss of buoyancy in revenue growth during economic slowdown, the deficit is sought to be met by borrowings of the order of Rs. 401,000 crores.

But there were other major issues to rejuvenate the opposition and for it to haul the government over the coals. The conciliatory joint statement of the Prime Minister with his Pakistani counterpart Mr. Yousuf Raza Gilani, keeping the door open for composite dialogue, virtually de-linking it from terrorism, was termed by BJP leader Mr L.K. Advani as a “historic blunder”.

The Prime Minister's laboured defence of the statement, mainly on the ground that war was no option, failed to lift reservations on the Manmohan-Gilani joint statement, even among the Treasury benches, though Dr. Singh clarified that the policy would be “trust but verify”. Later the Congress President Ms. Sonia Gandhi told the party that there was no change in Government stand that Pak-based terrorists responsible for the Mumbai outrage of 26/11/2008 should be brought to justice before there could be resumption of dialogue.

The immediate challenges in internal security are mainly terrorism from across the border and the growing left-wing extremism spread over six to seven states. The Prime Minister has spoken of “credible information of ongoing plans of terrorist groups in Pakistan to carry out fresh attacks” at a conference of state chief ministers. Home Minister Chidambaram discussed with states measures to counter Naxalite violence and insurgent groups in North-East.

The Indo-US agreements during the visit of the Secretary of State Ms. Hillary Clinton, especially the one on end-use monitoring of high-tech weapons was another major issue raised by opposition with BJP charging Government with departing from the consensual foreign policy India had followed all these years. Galloping food and related product prices, which had somehow eluded Government's attention and the rice scandal were also forcefully focussed by the opposition putting the Government on the defensive.

The early days of the Government have also witnessed some dissent within over economic policy and land acquisition issues. Government decided to go slow with its agenda of reforms (banking, insurance, etc) as well as disinvestment in public undertakings, to which both coalition partners, Ms. Mamata Banerjee's TMC and the DMK are opposed. At one stage, Ms. Banerjee threatened to walk out of a Cabinet meeting in protest against the Land Acquisition (Amendment) Bill as framed and subsequently, Government had to withdraw the bill set for introduction on the last days of the budget session.

The Law Minister's bill providing for declaration of assets by Judges had also to be deferred following strong opposition from BJP and other members. The Chief Justice of India Mr K G Balakrishnan has since let it be known that if Parliament passed a law on declaration of assets, the judiciary would “implicitly” accept and abide by it. Parliament approved the Right of Children to Free and Compulsory Education Bill. It can be a landmark legislation to give a boost to elementary education but what matters is enforcement of such laws. Another notable development in the first 100 days of the UPA Government was the publication of the Draft Code on Tax, intended as a simpler law, lightening the burden of the tax-payer, which would replace the Income Tax Act of 1961.

This year's drought, a recurrence after some years, will have some impact on growth of the economy, relative to its share of GDP at 17 per cent, but with over 50 per cent of the population dependent on agricultural crops and incomes, it would have wider social implications. India tops the list in terms of the under-nourished population and monsoon failures would aggravate rural misery. About 180 districts in nine states have been declared drought-hit and states are clamouring for relief assistance from the Centre.

Despite the worst global slump, international commodity prices have surged. While the drought would have a dampening effect on GDP growth estimated at 6 to 6.5 per cent, distress in agriculture would have other “serious dimensions”, according to Dr. C. Rangarajan, Chairman of the Economic Advisory Council. Government might have to provide additional resources for drought relief and make some imports, like pulses. He also anticipates price rise and interest rates moving up by the end of the fiscal year.

The Prime Minister, who has set up a Group of Ministers to monitor the drought situation on a continuous basis and take appropriate steps on relief supplies and price front, told a conference of state chief ministers that there was no need for panic as Government had enough foodgrain stocks and a better understanding of how to handle such a crisis, He sought states' cooperation in tackling the drought situation and said that the rural employment guarantee programme would be expanded for drought relief works.

Since agriculture is the backbone of the livelihood of over 60 per cent of population, says Prof. M.S. Swaminathan, noted agricultural scientist, there should be long-term solution to problems faced by farmers in rain-fed areas. He hoped the crisis group set up by the Prime Minister under the chairmanship of Mr. Pranab Mukherjee, Finance Minister, would develop a medium to long-term plan that could enable the country to face the challenges of drought, flood, and sea-level rise which would be the recurrent consequences of global warming and climate change. (IPA Service)