Will cutting tax rates for the corporates bring the Indian economy out of the ongoing slowdown? The auto sector workers believe no. Nearly a thousand workers from different auto mobile units in Manesar protested on Friday, October 11, against the policy decisions of the Modi Government which has “failed” to breathe any life into the drowning economy.
“It is the Indian labour force,” said the protesting workers, “that has been bearing the brunt of the economic slowdown through lay-offs and cuts in salaries and allowances.” Conversely, the Modi government is giving concessions to the corporates and rapidly advancing the “anti-worker” privatisation policy which is further going to push millions of Indian labourers to exploitative working conditions.
Led by Bellsonica Auto Component India Employees Union, the workers carried out a protest march and handed over a memorandum, addressed to the President of India, to the local administration. Centre of Indian Trade Union (CITU) has extended its support to the protesting workers.
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The Indian economy is currently in doldrums. Latest government data released on Friday showed that India’s industrial output shrank at its fastest rate in more than six years in the month of August this year. While the Indian corporates are crying due to the production slump, the workers have been facing the worst possible consequences of the slowdown. Millions of jobs have already been cut and those who have their jobs are marred with cuts in their salaries and a constant fear of losing their jobs.
To tackle this, the auto sector staff, in its memorandum, demanded the Modi government to put an end to its liberalisation, privatisation and globalisation policies.
Regular recruitments of permanent nature should be made and the factories shut down due to the economic slowdown should be nationalised, the memorandum added.
“We demanded the government to abolish indirect taxes and increase its spending on public schools and hospitals,” Jasbir Singh, General Secretary of the Bellsonica Auto Component India Employees Union told NewsClick, adding, “which will allow the general public to increase its savings which will then be spent in the market. Cutting corporate taxes won’t resolve the depressed demand problem in the economy.”
Last month, responding to the ongoing economic ruin, Finance Minister Nirmala Sitharaman announced a staggering Rs 1.45 lakh crore of tax concession to the corporates. Calling it exactly opposite of what was needed, many economists raised a red alarm against the decision saying that the decision would further aggravate the slowdown, making income and wealth distribution in the country even more skewed.
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