24% fall in GDP growth rate a result of Modi-govt.’s faulty policies: Left parties

The decline began much before the pandemic hit the nation, they say

Published - September 01, 2020 07:09 pm IST - New Delhi

CPI general secretary D. Raja. File

CPI general secretary D. Raja. File

The 24% fall in the GDP growth rate is a result of the Narendra Modi-led government’s faulty policies and the decline had begun much before the pandemic hit, the Left parties said on Tuesday, a day after the latest GDP numbers were revealed by the government.

Also read: Economy collapse began with demonetisation: Rahul Gandhi

The CPI(M) Polit Bureau in a statement said the fall in the GDP growth rate is ‘phenomenal’ and ‘unprecedented’. “The cumulative impact of demonetisation, GST implementation and the abrupt unplanned, unprepared national lockdown have all contributed to the destruction of the economy.”

CPI general secretary D. Raja said the government has been living under an illusion. “The state of economy cannot be shrugged off as an “act of God”. This kind of contraction is unheard of in recent history. We have plunged down to recession levels. This can be reversed only if the Modi government revisits its neo-liberal policies.”

The Left parties have been raising the issue of spiralling unemployment rates and demanding an increase in governmental expenditure. The primary cause for the dip in the GDP is the massive fall in domestic demand which is due to the sharp decline in the purchasing power of the common man, the CPI(M) said.

Also read: RBI announces additional measures to foster orderly money market conditions

“Instead of addressing this issue by vastly enhancing public investments to build our much-needed infrastructure and general large-scale employment, which would have strengthened the demand in the economy, the Modi government is focused on pursuing the neo-liberal trajectory of making more funds available for investment by private corporates, giving them greater tax concessions and looting national assets,”it said.

The party said massive hikes in public investments coupled with cash transfers and free food is the only manner in which any meaningful recovery is possible along with providing people some relief and livelihood.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in


Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.