Submitted by editor on Sat, 10/25/2008 – 18:27
India today is on the brink of a protracted recession. Almost every economic indicator in the country is putting immense pressure on all economic activities in the country and painting a gloomy picture of our economy. Inflation is in high double digits, GDP growth rate is faltering, Industrial growth rate has touched a record low of 1.3 percent and the growth of our agriculture sector has turned bad to worse.
Declining capital formation and steep reduction in public investment in agriculture sector during the UPA rule has led to a complete stagnation of Agricultural growth in India. In other words the UPA Government has proved to be a big disaster on the economic front.
Agriculture is considered a recession proof sector as it does not face decline in demand even in a worsening situation. Being a predominantly agrarian society, India has the potential and resources to deal with any challenge posed by recessionary atmosphere in the world.
Eminent thinkers and economists around the world have started chalking out detailed action plans for agriculture and predicted that food security will be the top agenda of all the Governments in future. It clearly indicates that the world is now awakening to the growing importance of strengthening agriculture sector but the UPA Government’s slumber has deepened further.
By pursuing disoriented and confused economic policies the UPA Government has jeopardized our national food security. No wonder, India’s record on hunger today is worse than that of nearly 25 sub-Saharan African countries and all of South Asia, except Bangladesh.
The International Food Policy Research Institute (IFPRI)’s 2008 Global Hunger Index says that with over 200 million people insecure about their daily bread, Indian scenario is ‘alarming’ in terms of hunger and malnutrition.
According to the World Development Report, “To reduce poverty and hunger, the growth of the agricultural sector is the only solution.” But the higher cost of production without a corresponding increase in prices has made agriculture a non viable profession in India.
In the absence of remunerative prices, coupled with lack of timely, affordable and adequate credit and high interest rates have forced the helpless farmer either to quit farming or to commit suicide. More than five thousand farmers committed suicide in different parts of the country.
The Prime Minister’s ‘Vidarbha Package’ for the farmers has failed to address the key issues. The farmer’s loan waiver scheme also met the same fate as it left majority of the farmers agitated and disgruntled.
Both these schemes have proved to be a cruel joke on farmers and the Congress led UPA Government will have to pay a heavy price for it in forthcoming assembly elections and the General Elections scheduled next year.
The UPA Government has remained unconcerned over the gravity of the situation and adopted a casual approach while dealing with a sensitive subject like Agriculture.
I am happy to note that the BJP ruled states have performed better than the Congress led Governments on the agriculture front.
We have the shining example of Gujarat State before us which registered a remarkable 13 percent growth in agriculture in comparison to meager national agriculture growth of nearly 1.8 percent.
After coming to power the BJP led NDA Government will introduce a paradigm shift in agriculture where it will synthesise the old and the new, and focus on the economics of small land holdings.
The BJP will increase the quantum of public investment in agriculture and mandate banks to earmark 30% of their total loans for credit to the agriculture sector. We will take immediate steps to see that the farmers be given loans at not more than 4% interest for agriculture and allied activities.
The NDA Government at the Centre will implement the recommendations of the National Commission on Farmers and assure the farmer of actual cost of production plus 50% over and above this cost as the MSP for his produce.
BJP led NDA Government will also implement Farm Income Insurance Scheme to ensure guaranteed income to all farmers in the country.
India facing economic terrorism
UPA Government’s soft and weak-kneed approach to deal with terrorist activities is a fact well known. Unfortunately the issue of internal security which warrants national consensus among all political major political parties and other prominent stake holders in our society has become a casualty of UPA Government’s vote bank politics.
During the 42 months of UPA rule terrorists and anti-India forces have galvanised its cadres and gained strength to strike India anywhere, anytime and at will. They have developed a multi-pronged strategy to damage India at every possible level. Recently we have witnessed a big surge in circulation of fake Indian currency notes in the country. It is well thought strategy of anti-India forces to unleash economic terrorism in the country.
Pakistan’s intelligence agency the ISI has pumped in counterfeit currency worth billions of Rupees into India through Bangladesh and Nepal borders. According to recent estimates by a Government panel, fake currency worth 1 lakh 69 thousand crores Rupees are already in circulation.
Fake currency notes have been recently confiscated in many States. Even at the branches of the Nationalised banks and their ATM’s fake currency notes have been confiscated. Counterfeit currency is being used to fund terrorist operations. I urge the present dispensation at the Centre to take effective steps to plug the supply of fake currency notes in India.
The BJP demands the Government that it should come out with a white paper on circulation of fake currency in India.