Fall in Industrial Output of India During October 2011
It’s shocking to note that Industrial output In India has fallen during 2011, particularly lowest in October 2011 since 2009. In October 2011 it fell by 7 percent i.e. worst performance. What are the repercussion of this unprecedented fall on poor workers, particularly on more than 30% poor Indians on their family’s livelihood as it has led to high inflation particularly in food articles of daily use like rice, wheat and pulses and also vegetables. Manufacturing sector was also hit by rising interest rates and decline in mining output. Foreign direct Investment (FDI) which is being set aside because of opposition by the BJP and other opposition parties like CPI will further lead to decline.
There has been deadline for 9 days till government bowed and Pranab Mukherjee announced in Parliament on Wednesday the 7th November 2011 that government has decided to hold back “implementation” of its policy of direct investment. Though it is temporary but it pacified the opposition parties like BJP. Pranab’s announcement in Parliament though halfhearted said “The decision in permitting FDI in multi brand retail in suspended is developed among various stock brokers”.
Fall in industrial output is due to inflation and resulting price rise because of faulty economic policies followed by government and graft or corruption has led to fall in industrial production all over India. If government is unable to find a way to increase industrial and agricultural production, the opposition has asked the “government to quit” as it has no business or right to remain in power and rule the country. Leader of the opposition in Parliament, Suslima Swaraj.
Comptroller and Auditor General (CAG) has pointed out to six scams as 60,000 tonne of food grain” is rotting in godowns” while government has taken a loan of Lakhs of crores of rupees from reserve Bank of India (RBI). Even planning commission Vice Chairman. Montek Singh Ahluwalia came under attack with questions being asked in Supreme Court.
Replying to criticism by the opposition, Pranab Mukherjee, Finance Minister of Govt of India said “it is not correct to say that government has not done anything”. But it is clear from his own statement and opposition’s attack that what government did was not adequate to improve the conditions of workers and poor Indians to improve their conditions or by not letting it deteriorate during 2009 to 2011.