United Front leaders are divided over the recent cabinet decision to lift import restrictions on consumer goods. While some Left leaders say that the move will hit indigenous industries badly and lead to a flood of consumer items, other front leaders say this liberalisation is inevitable.
The government recently decied to lift quantitative restrictions on imports of consumer items and replace them with higher tariffs. Government officials hold that the move will not lead to any surge in the import of consumer items in the long run.
Since most of the items which have been put on open general licence are available in the market, the initial surge will subside gradually, they add. However, import restriction on agricultural goods, which constitute 70 per cent of all imports, will countinue.
Left leaders say that already the country is facing consequences of unbridled consumerism. While 40 per cent of the people live below poverty line, the finance minister talks of choice of cars, one CPI leader said.
CPI(M) polibureau member S Ramachandran Pillai said that his party would raise the issue in Parliament, as we have strong reservation on the issue.
However, a senior UF leader said that since the country was a borrower it would have to accept certain terms and the decision was part of that term.
The issue was discussed at the January meeting of the UF steering committee. The finance minister had assured Left leaders that the decision would not effect the indigenous indutries and restrictions would be lifted in phases, spanning five years.
