Demonetisation followed by faulty GST led to this slowdown: Manmohan Singh

The first step to fix it is to acknowledge that there is an economic slowdown, says the former Prime Minister.

Former Prime Minister Manmohan Singh believes Indian economy is facing a slowdown, which is both structural and cyclical in nature. In an interview with Hindi daily Dainik Bhaskar, he said the first step towards addressing it should be to acknowledge the fact that we are facing a crisis.

Saying that India was able to successfully handle the 1991 and 2008 crisis despite not having a mandate as big as that of the present government, Singh said the government needs to stop the habit of headline management and start engaging with experts and stakeholders to find a way through the problem.

The former PM suggested five measures to revive growth:

1. Rationalisation of GST, even if it leads to loss in revenue in the short term.

2. Focus should be on increasing rural consumption and reviving the agriculture sector. He said government can take clues from Congress manifesto, which lays down several measures in this regard to free up agri markets.

3. Liquidity crisis needs to be addressed. He said that not only public sector banks but NBFCs also get cheated.

4. Looking for ways to revive major job-generating sectors such as textile, auto, electronics and also subsidised housing. He said easy loans need to be provided for this purpose, especially to MSMEs.

5. Government needs to identify new export markets opening up due to the ongoing trade war between US and China.

Further, Singh said government needs to address both structural and cyclical problems to get back to the high growth rate in 3-4 years.

Business Standard

Somnath Chatterjee, communist who saw danger in equating Congress with BJP

Chatterjee argued that given the BJP's rapid ascension, the CPI(M) should help the Congress in keeping the BJP out of power at the Centre.

Former Lok Sabha speaker and veteran communist Somnath Chatterjee died in Kolkata on Monday. He was 89 years old. A member of the Communist Party of India (Marxist) for some four decades, Chatterjee was expelled from the party in 2008 after refusing to step down as Lok Sabha speaker following his party’s decision to pull out support from the then Congress-led United Progressive Alliance (UPA) government.

A ten-time member of the Lok Sabha, Chatterjee occupied the post of the speaker from 2004-2009. The sole exception to his electoral winning spree was when he lost Kolkata’s prestigious Jadavpur constituency in 1984 to the present West Bengal chief minister, Mamata Banerjee, then only 29 years old.

A powerful and persuasive speaker for his party in the Lok Sabha, Chatterjee owed his oratorical skills to his training at Cambridge University, where he studied law in the 1950s, and his work as a lawyer.

Born in Tezpur, Assam, on July 25, 1929, Chatterjee’s association with the CPI(M) began through an unconventional journey. His father, Nirmal Chandra Chatterjee, a former judge at the Calcutta high court, was closely associated with the All India Hindu Mahasabha. Though the senior Chatterjee eventually snapped his links with the organisation and turned to taking up civil liberties issues, Somnath took an ideologically different route.

ALSO READ: Somnath Chatterjee: Lawyer, parliamentarian, Lok Sabha speaker and more

In his memoirs, Keeping the Faith: Memoirs of a Parliamentarian, published in 2010, Chatterjee writes about how Jyoti Basu along with Bengal’s communist stalwarts like Promode Dasgupta and Harekrishna Konar persuaded N C Chatterjee to prevail upon his son to contest the Lok Sabha polls. Backed by the CPI(M), which he had joined in 1968, Chatterjee stood as an independent candidate in the 1971 Lok Sabha elections. That is how he launched into an eventful political journey spanning four decades. “As far as I am concerned, my victory was also that of the party’s,” he wrote.

However, Chatterjee’s differences with his party on critical questions surfaced time and again and were well known. Some of these centred around much of the present political churn visible in the CPI(M). For instance, what kind of relationship should the CPI(M) have with the Congress in light of the Bharatiya Janata Party’s political and electoral advance? Such differences of political tactic and strategy between the CPI(M) and Chatterjee manifested soon after the Babri Masjid demolition in 1992.

Article Source BS