Recession in US economy to hit Indian budget projection: CPM

Recession in US economy to hit Indian budget projection: CPM
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First Published: Sat, Mar 15 2008. 08 04 PM IST
Updated: Sat, Mar 15 2008. 08 04 PM IST
Bhubaneswar: Warning that recession in the US economy would hit India and shatter its budget projections, CPI-M on Saturday demanded immediate halt to futures trading in all essential commodities to contain inflation and corrective measures for the stability of the rupee.
“In order to check speculation and inflation, futures trading must be stopped in all essential commodities though the government has removed pulses, wheat and rice from the purview of forward market due to our pressure,” CPI-M politburo member Sitaram Yechury told reporters here.
Stating that the US has officially admitted that its economy was going through rough times, he said, recession, falling value of dollar and growing unemployment in America would have adverse impact on India and the government must initiate corrective measures to tackle the situation.
Observing that rupee has appreciated by 13% during the past one year, he said decline in exports and manufacturing sector coupled with badly hit IT and textile sectors would cause considerable loss of jobs.
He said that such a situation has put the projections in the union budget into uncertainties.
Voicing his party’s determination to prevent signing of the nuclear deal with the US, Yechury said, “Our agenda is not to destabilise the UPA government at the Centre but to stop the nuclear deal. It is for the government to decide its future course of action.”
He said left parties would discuss the whole gamut of issues relating to the deal with the government during the meeting slated for 17 March.
The left parties would also like to see and study the draft agreement for the deal planned with the US, Yechury said adding that the government must share all its discussions with the IAEA too.
On the US State Department’s report on human rights issue, the CPI-M leader said Nandigram has been singled out though America was silent on the situation in several other parts of the world including Iraq and Israel.
Stating that the report has been condemned by all, he said internal affairs within India would be settled internally and there should not be interference by the US.
Claiming that there was a ‘grand alliance´ against the CPI-M on Nandigram issue, Yechury said starting from NGOs to the US and Congress leaders to RSS and BJP were together over this issue. “It demonstrates how important CPI-M is,” he said adding the party was the biggest victim of violence in Nandigram where many were killed and thousands evicted.
On the third political alternative, he said CPI-M was trying to bring together like-minded parties on issues like secularism, ‘anti-people´ economic policies of the government and sovereignty and independent foreign policy.
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First Published: Sat, Mar 15 2008. 08 04 PM IST
More Topics: Inflation | Recession | US economy | India | CPI-M |