The government cannot release the excess stock to the hungry without destroying its finances, even while such NDA allies as Naidu and Badal are forcing the Centre to procure more foodgrains to protect their political interests. It is possible that the government may openly auction its foodgrain stocks but no one expects the government to make money. Losses stare in the face. Economic downturn As such, the Indian economy is in crisis. Industrial growth rate has plunged from a February 2000 high of 8.2 per cent to below 0.6 per cent with little hope of early recovery.
Manufacturing is down and cheap Chinese imports have crushed small industry.
There are growing fears that lifting of quantitative restrictions under the WTO regime will pour in imports that will hurt Indian agricultural produce already getting low prices in the market, leading to further impoverishment of agriculturists and more suicides. But this position is rejected by such trade unions as the Bharatiya Mazdoor Sangha and such farmer groups as the Bharatiya Kissan Sangha. And yet, the little clarification forthcoming from government on WTO is entirely on account of the powerful influence of the BMS, BKS, etc, affiliated to the Sangha Parivar. It is that the lip service it pays to BMS or BKS objections is not available to voiceless small manufacturers and agriculturists that have already been hit by cheaper imports. Plus, there are un-addressed apprehensions of workers related to a law that allows industries with 1000 workers to lay them off at will and disinvestment in public sector units.