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.
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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.
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“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.