[Marxistindia] Indian economy in severe recession

[news from the cpi(m)]

September 1, 2020
Press Statement
 
The Polit Bureau of the Communist Party of India (Marxist) has issued the
following statement:
 
Indian Economy in Severe Recession:
Hike Public Expenditures to Revive Domestic Demand
 
The data released by the government yesterday shows the total devastation of
the Indian economy that began much before the Covid-19 pandemic emerged.  A
24 per cent fall in the GDP growth rate is phenomenal and unprecedented. 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.
 
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.
 
The CPI(M) has all along mounted public pressure on this Central government
to increase governmental expenditures.  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.  
 
 
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