Nirmala Sitharaman: From commerce to defence in four years

New Delhi: Minister of State for Commerce & Industry (Independent Charge), Nirmala Sitharaman addresses at an Interactive Session with the Startup Ecosystem Stakeholders, during the first anniversary of Start Up India, in New Delhi on Monday. PTI Photo (PTI1_16_2017_000067B)

With Prime Minister Narendra Modi shuffling some of his key cabinet ministers and filling up vacancies, Nirmala Sitharaman on Sunday became the new defence minister of India, and the second woman to hold the superior portfolio.

Sitharaman has entered the top four circle of ministries close to the Prime Minister with her elevation from the MoS of Commerce Ministry to Defence Ministry which was left vacant by Manohar Parrikar after he resigned to become the Chief Minister of Goa.

Finance Minister Arun Jaitley had to take over the Defence ministry after Parrikar left, but Defence calls for a sole custodian of its own and according to Parrikar, Sitharaman is a ‘clear-headed’ woman who will do justice to it.

The 58-year old spirited woman from Andhra Pradesh, has risen quite fast compared to most senior politicians and ministers. She got noticed for her work as a minister as well as for being an articulate mouthpiece of the ruling BJP.

Politically tempered by senior BJP leader and union minister Jaitley, Sitharaman had entered Rajya Sabha only in 2014.

Notably, she was a member of the National Commission for Women--the statutory body to safeguard legal and constitutional rights of women in India--for two years till 2005.

With the aim of making India a manufacturing hub, Sitharaman introduced several changes in industrial policies.

Under her regime as the commerce minister, The Department of Industrial Policy and Promotion eased a number of FDI rules in sectors like defence, food products, aviation and retail; they also fast-tracked application and approval processes to step up growth in economy and jobs.

The well-versed politician also piloted the policy to let up to 100 percent FDI in domestic airlines and new airports; as a result, foreign companies can now completely own Indian domestic carriers and 'greenfield' airports and up to 74 percent in existing airports. Defence also saw the doors opened for 100 percent FDI with the government's aim to bring in newer, up-to-date technologies through foreign partners.

Initiated during Sitharaman's tenure, a new industrial policy is also being drawn up after decades.

The commerce ministry has also been dealing with 21 crucial free trade agreements with several countries which will now be handled by new Commerce Minister Suresh Prabhu.

On the other hand, Sitharaman will have to take care of all critical tasks left unfinished by Parrikar in the Defence frontier.

Recently, the government has announced reforms for the Indian Army to improve their combat skills and optimize expenditure. The gigantic task includes redeployment of over half a lakh military personnel and shutting down military farms.

Added to Sitharaman’s significant responsibilities, is the diplomatic relationships with neighbouring Pakistan and China, given the rising tensions.