The National Secretariat of the Communist Party of India has commented that steps taken by Finance Minister Nirmala Sitharaman to address deep slow down in Indian economy are half hearted and taken due to pressure of super rich and foreign capital and to appease finance capital. Wealth creators are not only rich people and MNCs. It is the people of the country who are the creator of the wealth. It is an admission of structural slow down in economy aggravated due to demonetization. This was not accepted during budget presentation and hence today’s announcements by Finance Minister virtually cancels the budget presented with all bravado and false assumptions.
Merely taking steps to increase liquidity in the system will not help us to reduce unprecedented rise in unemployment and stagnation and fall in income specially rural income, has depressed consumption and confidence of investors. It was rightly pointed out by Vice-President of Niti Aayog that there is lack of trust and unprecedented crisis in economy not seen since last 70 years.
It is now proved beyond doubt that misadventure of demonetization has hit the economy hard and ripple effects of the same are being felt by people.
Government is still in denial mode and needs to accept that there is major slow down and act quickly to rebuilt trust and economy on sound footing. Loan driven economy without corresponding increase in real income of working people will not help in the long run.
India could overcome economic crisis because of strong public sector. Public sector should be strengthen.