Ranchi: Jharkhand’s opposition parties on Saturday mocked Prime Minster Narendra Modi’s comment that the state was developing and said the remark was made keeping in mind the upcoming Bihar assembly polls.
Modi, while launching the Pradhan Mantri MUDRA (Micro Units Development and Refinance Agency) programme in Jharkhand’s Dumka city and also addressing a rally in Bihar’s Banka district on Friday, said:
“Jharkhand is developing after the BJP government was formed.”
“Modi is master of branding. He is branding Jharkhand to win Bihar poll. Modi should spell out single achievement of Raghubar Das in any field like road, power and health sector which has helped the people of the state,” Alok Dubey, Jharkhand Congress general secretary, said.
Dubey said: “In the last nine months, the power situation has worsened. The state capital Ranchi witnesses 10 to 12 hours of power cuts. A power cut also happened a few days ago when the chief minister held a meeting in the secretariat to discuss the power scenario in the state.”
Jharkhand Mukti Morcha (JMM) also questioned the prime minister’s remark. “Modi is master of packaging and branding stale things. Modi should look into Ranchi-Jamshedpur national highway which has turned into a death trap,” Kunal Sarangi, JMM legislator from Bahragora, said.
“The prime minister should also look into the Bahargora National Highway 33, connecting Jharkhand to Odisha and West Bengal. This highway witnessed traffic dislocation for a record 220 hours last month.”
Sarangi said: “We want to know from the prime minister about the parameters on the basis of which Jharkhand stood third in World Bank ratings for the most investor-friendly state.”
“Reliance withdrew from Hazaribagh’s 4,000 megawatt power plant. Not a single industry is established. Where are the facts and figures that prove the claim that Jharkhand is developing. It is still working on the 2014-15 policy of providing drinking water and repairing tubewells. More than half of the state is facing drought and the state government is doing nothing to help the farmers.”
The fall of the currency of India to record lows and rising global oil prices have raised worries that the world’s fastest growing economy faces headwinds that could hurt the fortunes of Prime Minister Narendra Modi’s party in next year’s general elections.
From people filling fuel at gas stations to thousands of students heading out to study overseas, the impact of the slumping rupee is sparking discontent.
Having plunged by about 12 percent against the dollar this year, the rupee is one of Asia’s worst faring currencies, and as in other countries, the slide has accelerated since the crash of the Turkish lira.
“The reasons are global. We must bear in mind that in last few months, dollar has strengthened against almost every currency,” said Finance Minister Arun Jaitley recently as he tried to send out reassuring signals that India’s economy is on track.
The rupee’s sharp depreciation comes at a time when the economy had recovered from a slowdown and surged to a two-year high in the quarter that ended in June. Forecasts put growth for this year at 7.5 percent.
Economy will slow
But economists warn this momentum will be difficult to sustain as the tumbling rupee, along with rising crude oil prices, takes a toll on growth. India, the world’s third largest oil importer, gets almost 80 percent of its fuel needs overseas.
“The government needs to mellow down on growth aspirations,” said N.R. Bhanumurthy, economist with the National Institute of Public Finance and Policy. “The growth needs to come down to a little less than 7 percent.”
Even as the government faces the prospect of a slowing economy, it is under pressure to lower taxes on gas and diesel to bring down the sharp rise in prices. Fuel is one of the most heavily taxed items in India, with rates as high as nearly 50 percent. Prices vary from state to state, but they have gone up by about 14 percent this year.
Hoping to cash in on the growing disaffection over the surge in fuel prices and the sliding rupee, opposition parties led nationwide protests that shutdown offices and schools in several cities this week.
The government dismissed the protests, saying that although people faced momentary difficulties, they understood they were because of factors beyond its control.
Political analysts are not so sure, pointing out that fuel prices are a politically sensitive issue in India and usually result in a spike in inflation.
“Anger is rising, there is resentment,” said Satish Misra at the Observer Research Foundation, warning the ruling party will face a backlash “Obviously that is going to have a negative impact on the electoral fortunes of the Bharatiya Janata Party, there is no doubt about that.”
Warnings from economists
Among those who are upset with the high fuel prices is Rajesh Kumar, who commutes 30 kilometers to the advertising agency where he works. Hit by the higher prices that eat into his income, he has started sharing the ride with another employee.
“I have given up the idea of buying another car,” he said despondently. “I will not be able to afford the cost of running it.”
Economists however have warned the government against giving in to populist pressures ahead of a series of state polls later this year and general elections around April next year. They say lowering taxes on fuel or taking measures to prop up the currency will strain the country’s finances and hurt the economy in the long run.
“One needs to be more careful and vigilant,” Bhanumurthy said. “It is easy for India to stay with low growth than experiencing the high deficit.”
But there is also some good news for the Indian economy. The falling rupee has given a boost to some of India’s most lucrative exports, such as software services and pharmaceuticals, which add up to billions of dollars. (VOA)