Demonetization started the economic slump: CPI

The National Executive Committee of the Communist Party of India has formulated its views on the economic slowdown, which India is being forced to face.Eminent trade-unionist and member of the Party’s National Executive Sri Rama Krushna Panda has shared the same, which we feel very relevant in public interest. Here we quote him:

The Indian economy is in shambles. The National Executive of the Communist Party of India discussed at length the causes of crippling slowdown. The meeting underlined the fact that the slowdown in the economy is in fact, due to demonetization that removed liquidity from the market and from then onward started the economic slump.

Crores of jobs in the unorganized sector have been lost, the real estate sector was ruined, the micro, small and medium industries were forced to close down their businesses and the rural economy was badly hit which is yet to recover even after three years.

The manufacturing sector has shown a mere 0.6 percent growth and if the negative growth in the unorganized sector is taken into account, the GDP growth would be hardly 1%, as per the experts.

The ill-timed introduction of GST and its faulty implementation immediately after the mammoth shock of demonetization have further added fuel to fire, bringing thereby the economy on a downward spiral.

The economic crisis which began with demonetization and faulty implementation of GST has broken the backbone of the economy from which the country is yet to recover even partially.

The National Executive meeting felt that the revival in the economy can come about, only if the rural economy is boosted and the purchasing power of the population is enhanced.

The problem is on the demand side and not on the supply side and hence, unless it is addressed, providing stimulus to revive agriculture and improvement of rural economy, the measures announced by the Government will not be able to bring the economy back to its rails. On the other hand, we will soon face recession and deceleration. Many of the industries have already started announcing “non-production” days and started closing down their factories. This will make thousands more jobless. Already the unemployment problem is at its peak and the country has not seen such a kind of problem in the last 45 years.

The National Executive felt that subsequent policy measures aimed at pampering the corporate houses with the hope that such moves will boost growth not only misfired but also pushed the economy into deep crisis.

Taking note of the grave crisis in the economy and all-out attempts by Modi Government to divert the attention of the people from their burning issues, the meeting urged upon all party units to mobilize all sections of people and rally against the pro-corporate anti-people policies of the government.

All India Protest by Left

The National Executive while appreciating the joint initiative of the Left parties to hold a week-long protest from October 10, 2019 made it clear that it is going to be a prolonged strenuous struggle and urged the party units to prepare the masses under the Left banner along will all other democratic forces for such a long and fierce struggle.

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