Indian economy in severe recession: CPI(M)

The CPI(M) on Tuesday said that the data released by the union government on Monday shows the total devastation of the Indian economy that began much before the Covid-19 pandemic emerged.

A 24 percent fall in the GDP growth rate is phenomenal and unprecedented, the Polit Bureau of the Communist Party of India (Marxist) claimed.

According to the left part, the cumulative impact of demonetization, GST implementation and the abrupt unplanned, unprepared national lockdown have all contributed to the destruction of the Indian economy. 

“The primary cause for this is the massive fall in domestic demand, i.e., sharply declining purchasing power in the hands of our people. 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,” reads CPI(M) statement.

It also said that no amount of incentives for private investment can revive the economy.

“What is produced by such investments needs to be sold in the markets.  There are no buyers, both globally and domestically,” it added.

The CPI(M) said they have all along mounted public pressure on the union government to increase governmental expenditures and the government, however, continues to pursue policies of constraining expenditures which, in turn, also drastically reduced governmental revenues because of the economic recession.

The Polit Bureau of the CPI(M) reiterates that massive hikes in public investments coupled with cash transfers and free food is the only manner in which any meaningful economic recovery is possible along with providing  people some relief and livelihood.