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If BJP were to come to power, it would be economic suicide for the Indian economy

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If BJP were to come to power, it would be economic suicide for the Indian economy Empty If BJP were to come to power, it would be economic suicide for the Indian economy

Post by Guest Wed Apr 02, 2014 3:21 pm

Perhaps Modi would leave the economy to be handled by others in the BJP, but who is competent to do it? Yashwant Sinha, the finance minister during the NDA regime, does not exactly inspire confidence. “In 1990, Sinha was finance minister in the government of Chandrashekhar, when the bottom fell out of the Indian economy. The government's policy response then was to ship all the gold in the Reserve Bank of India's vaults off to the Bank of England as collateral for a loan… In 1998, by a peculiar coincidence, Sinha was again finance minister, this time in the BJP-led NDA coalition government… In March 2001, soon after Sinha presented his Budget, India experienced one of its worst market crashes: about $32 billion worth of market capitalisation was wiped out that month… In the NDA era, a little less than $4 billion entered India each year on average. Under the UPA, this number stands at a little less than $25 billion, more than six times the NDA average” (Barman: 2013).

According to investment broker Shankar Sharma, “The BJP is the only mainstream political party that has no economist. And the BJP rule between 1999 and 2004 had the worst nominal GDP growth in the last 30 years in India, the worst by far. They ran the country into a huge debt trap. India’s debt to GDP ratio went from about 78 percent in 1999 to 91 percent by 2004. So again, whatever GDP growth the BJP delivered in those five years, the growth was with very high debt” .

At a time of downturn and global crisis, putting India’s economy in the hands of a party that has no competent economist is tantamount to economic suicide. In accordance with their-frog-in-the-well perspective, Modi and the BJP never mention the global crisis or inquire into its causes. Anyone who takes the trouble to do so would realise that the ‘medicine’ they prescribe for the economy, which is suffering from slow poisoning by neoliberalism, is a lethal dose of the same poison.

http://www.epw.in/web-exclusives/gujarat-model-development.html?ip_login_no_cache=ade5ad5d6928d522e391f6563ce7890f

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