Left punches holes in full float
Minority govt must consult partners on such major issues, says CPM
| "We believe they contribute nothing beyond speculation to the economy. They should pay for their activities here," Politburo member Sitaram Yechury said. |
| Meanwhile, party MP Nilotpal Basu criticised the UPA government's move on capital account convertibility, saying it was a minority government with support from outside and should consult other parties before any decision concerning fundamentals of the country's economy. |
| He was referring to Prime Minister Manmohan Singh's instructions last Saturday asking the finance minister and the RBI governor to consider a roadmap for full convertibility. |
| "At no point of time were we consulted over this. The PM has gone along unilaterally. We will raise a public debate on it," Basu said at a press briefing today. |
| The Left parties believe the Indian economy is not ready for full capital account convertibility and that the move will only help multinationals and hit exports. They argue that the primary market is still not strong enough and the secondary market cannot be taken as a yardstick of the country's economic strength. |
| Elaborating, Basu told Business Standard, "It will expose the economy to the volatility of global financial processes. It will be disastrous for the country." |