Increase public investment in infra, agri sectors: CPM to govt

CPI(M) today asked Centre to make "substantial" increase in public investment in infrastructure and agricultural sectors in view of the global financial crisis even as it cited industrial production and retail price indices to aver that the country's economy was in "trouble".
"A substantial increase in public investment in infrastructure and agriculture is called for if demand is to be revived and the slowdown reversed.
"Along with that, there has to be stepped up allocations for social sector expenditure and for food security and the MGNREGA if the rural distress is to be addressed," CPI(M) leader and its former general secretary Prakash Karat said.

Karat made the remarks in the editorial of forthcoming issue of party mouthpiece 'People's Democracy'.
Expressing concerns over agrarian crisis and rising food prices, Karat accused the Narendra Modi government of not showing any "urgency" in ensuring that the Food Security Act (FSA) is rolled out in all states.
He noted 11 states and Union Territories are yet to implement FSA, which was adopted in September 2013.

"Probably, the government does not mind saving the funds allocated for the food subsidy, given its zeal to curb the fiscal deficit," the communist leader quipped.
Karat further claimed that the country's economy was in "trouble" as he referred to indices of industrial production and retail price.

The index of industrial production contracted by 3.2 per cent in November 2015 and the retail price index registered a 5.61 per cent increase in December, he observed.
Karat said the industrial output figure is a "cause for worry" as the manufacturing sector within this index has declined by 4.4 percent.
"Capital goods sector has declined by 24 percent, a clear indication that investment is not forthcoming," he said.
He added that the slowdown in industrial production is attributable also to the "continuing fall" in exports over last 12 consecutive months, even as there is no domestic demand to boost production.

Karat said the "tall" talk of 'Make in India' is dependent on attracting foreign capital into India, but, he added, the investments are unlikely to happen given the state of global economy.
The Left leader also cast doubts over Centre's claim of attaining GDP growth rate of 7.2 per cent in its mid-year review, saying the figure doesn't match ground realities.
"With a global recession looming ahead in 2016, the Modi government will have to review its bankrupt policies. What is required is stepped up public investment. But for that the government has to raise resources by taxing the rich and reversing the cuts in public expenditure.

"However, there are no signs that the government, committed to fiscal orthodoxy, will do so in the coming budget," he said.