New Delhi: CPI(M) on Thursday said people`s miseries were bound to increase "exponentially", with a surge in food prices, a downward trend in rupee and a weak monsoon, as the Narendra Modi government would frame policies to suit interests of India Inc. Which "financed" BJP`s poll campaign.
"Given their active role in strongly financing this BJP election campaign, unprecedented in the history of Indian democracy, the assessments of India Inc. Would be closer to what the government`s policies might be rather than people`s hopes and expectations," CPI(M) leader Sitaram Yechury said.
Observing that the new government`s first budget comes with "worrisome news on the economic front", he said "post- elections is the payback time for those who heavily financed the BJP election campaign and forcefully projected Modi as the `messiah` of India Inc."
In an editorial in the party organ `People`s Democracy`, he noted that "much of the payback has already happened through market capitalisation as a result of the surge in the sensex and the stock market on the morrow of results".
Yechury said it was clear that this hike was "not simply sustainable... (and) already the downward trend appears to have begun" with a renewed fall in the rupee value.
He said the India Inc. Was now hoping for a new surge of economic reforms particularly financial liberalisation aimed at making capital available to corporates in an easier manner and on lower interest rates.
However, the upward swing in wholesale price index from 5.2 per cent in April to 6.01 per cent in May would "dampen" such hopes, he said, adding that food inflation rose to 9.5 per cent in May against 8.64 per cent in April hitting the poor and marginalised hard.
With IMF estimating a slowdown in the US economy this year "sending panic waves in India Inc.", he said Indian exports would weaken as a consequence and "profit maximisation would have to rely entirely on intensifying domestic loot".
"Hence, there is an alarming new surge for complete privatisation of the public sector" with "cries getting louder" for full-fledged disinvestment "by executive action, overriding existing laws".
"Need anything be more explicit! Dangerous portends reminding us of Mussolini`s infamous definition of fascism - `fusion of corporates with governance`," Yechury said, adding "singular message is that people`s miseries are going to mount exponentially."