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Communism Watch

Thursday, April 07, 2005

Indian PM warns growth to fall below target

If the growth really does slow down (most likely), it will be the first ever decline since 1998. The reasons are pointed out in Financial Times.
Mr Singh’s coalition wants to attract more foreign investment to help meet this demand. Yet it has had difficulty persuading its communist party allies, who support the government from the outside, of the need to boost private investment in areas such as telecommunications, insurance, and retailing. “We have the potential to grow at 7-8 per cent but we need strong political decisions to divert spending away from wasteful subsidies to more warranted investments,” said B.B Bhattacharya, professor at Delhi’s Institute of Economic Growth.

This is, apparently, not enough for communists in India. It wants an even harder stand - even with the knowledge of slowdown in economy, the hardline CPI attacked CPI(M) for its "tolerance" of UPA's econmic policies.

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