The Bharatiya Janata Party (BJP) yesterday charged Union finance minister P. Chidambaram with adding fuel to the fire by pursuing faulty economic policies of the Congress which was the main cause for the current economic crisis.
It is very strange that some of the parties which were opposed to the policy of Manmohan Singh and P.V. Narasimha Rao are now supporting Chidambarams policies which are an open invitation to multinationals, BJP leader Murli Manohar Joshi said.
Regarding Manmohan Singhs recent criticism of indecisiveness of the United Front government which was behind the slowdown in economic reforms, Joshi said Singhs statement had no credibility as the UF economic policy was only a continuation of the liberalisation policy started under the former finance minister in 1991.
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Economic policies have to be framed with a view to protecting national economic interests. All countries, particularly the developed ones, follow this policy, Joshi said, adding our governments policy has only made the Indian industry sick. Claiming that Chidambarams budget has remained only a dream, Joshi said the customs duty reduction and raising of excise duties in 1997-98 budget has only made foreign goods cheaper forcing Indian industry to become sick.
He said industrial recession is continuing because of this economic chaos.
Joshi said unless a vibrant and strong domestic market was created through proper economic policies, no domestic industry could survive. He added that only such a policy would increase the purchasing power of the people and generate avenues for employment.
Joshi did not agree with Chidambarams view that the implementation of the fifth pay commission report would generate the much needed demand in the economy.
On the contrary, he said this would only be inflationary as necessary conditions did not exist to push up production.
As most of the over Rs 18,000 crore to be spent by the government in implementing the pay commission report would go
to the middle class, the demand for foreign goods would further increase worsening the domestic industrial situation, he said.