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modi and economyFinance Minister Nirmala Sitharaman and RBI governor Shaktikantha Das pointed out indirectly that the current economic crisis would not be immediately resolved and GDP would fall further.

The banks are preparing to lend because the federal government has allocated funds to industry - with little interest - and eased some regulations. But no one has come forward to borrow. Either Micro, small, and medium enterprises that are already running or many big companies are reluctant to borrow.

Small and medium-sized companies have opened after the Corona curfew and are ready to begin production. But there is no demand in the market as before. Low productivity and unemployment have become inevitable.

Companies are ready to produce according to the existing handheld order or the existing local market demand. But there are no migrant workers because they have moved to their home states. Local workers cannot be hired without training; Even if you hire, you have to pay more.

This means that even though capital is ready, the industry is not in the position to use it. There is no demand in the market despite the industry is ready to produce. There are no workers, even if they try to produce according to the needs of the existing market. The conflict between capital and wages has been increased.

On the one hand, the accumulation of financial capital and on the other, unemployment and a dearth of essential commodities have been seen.

Usually in this situation, the corporates, with the help of capitalist government, will take measures by acknowledging that the purchasing power of the people must be increased in order to recover from this crisis. But the BJP government's refusal to provide free relief or a direct payment to the people indicates that the problem would not be solved soon. The State Governments, though desired to solve, have no money; fed up with the federal government.

How then will the crisis be solved? The only solution is to drastically increase the purchasing power of the people ... the govt should pick up the surplus wealth from corporate companies and big money crocodiles. But today is no chance. The present rulers are doing the opposite. The Modi government has tried to punish the revenue officials who have suggested an additional tax on the rich. On the other hand, it is trying to privatise all the public sector companies to favour corporates.

The Modi govt has opened the door for more foreign direct investment. Pointing to this, ruling class economists' experts dream that the world will be reorganized after the Covid-19 issue, in which foreign investment will be concentrated in India, so that the Indian economy will rise to the third position in the world in a few years.

What the Congress govt did by imposing LPG (Liberalization, Privatization, Globalization) to solve the Indian crisis of the 1990s is what today's BJP govt is trying to do same in quick manner.

India's GDP growth rate was 1.1% in 1990-91. In 1991, the IMF predicted that the LPG policy would increase the GDP to 7.5% in 2015-16. But India reached 8.2% growth actually in 2015-16 which was above IMF expectation. This GDP calculation system is flawed and important that reached growth is an inflated swelling or inflamed one like edema.

Employment has shrunk from 62.56% in 1991 to 42.38% in 2019. 20% has been driven from agriculture sector to the industrial and service sectors in the city.

Agriculture and its allied sectors contribution to India's GDP declined in 1991 – 2019. The contribution of the manufacturing industry has also gradually declined. The role of the service sector only, which includes communications and real estate, grew. That is, the needless sector was developed for the needs of the imperialists. Essential needs such as agriculture and industrial production were abandoned. Those few agriculture and industrial production were also fed mostly for the export; not for local demand. So the needless flesh grew and crushed the Indian economy. But the rulers portrayed it as growth.

The above, needless swelling of 1991-2019 economy developed simultaneously other phenomenon that is informal economy. Informal sectors grew in both manufacturing and business. In particular, they reduced the number of permanent workers in the industry & service sectors and increased the number of temporary workers. They also built up the industry and service sector by keeping workers floating around. This is why migrant workers in India have increased. They also wandered into many industries and many states.

Today, the statistics of migrant and informal workers are not in the hands of the central and state governments. One statistic states that 81% of the total workforce is only migrant workers + contract (temporary) workers + informal workers.

Since the Modi govt is implementing vigorously the same model of economic reforms which was introduced in 1991, that will continue to swell dangerously of unnecessary production and business growth, rather than domestic demand-based production. Apart from, the informal economy of foreign imperialist demand is going to be further promoted. So, the overall crisis is only going to get worse. Social balance is going to collapse. The working people are going to be abandoned on the street without any livelihood. What are we going to do?

When globalism - liberalism - privatization was introduced in 1991, electoral communist parties and non-electoral Marxist - Leninist - Maoist groups opposed them. They announced its (LPGs) aftermath dangerous and disadvantages. Wherever the permanent workers were reduced and the contract workers brought, the Communists opposed. All right, but did any party or group predict that the three-pronged policy of LPG would create such a large number of immigrant and informal workers? Were there plans to organize them if predicted? If so, why did it fail?

Now ... what method or plan do the Communists have to make the contract workers, the informal workers and the migrant workers to get organized? It is time for the Communists to investigate and act urgently.

- Gnalan


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