World Economy

Modi Gov’t Accused of Corporatism

Modi Gov’t Accused of CorporatismModi Gov’t Accused of Corporatism

Taking a swipe at the economic policy of the Narendra Modi government, DMK (Dravida Munnetra Kazhagam, a political party in Tamil Nadu) leader M K Stalin today said the country is moving away from a mixed to a capitalist economy with corporate honchos appearing set to get a “bonanza of sorts” and the poor a “pittance”.

“It appears that the path towards capitalist economy is being refurbished, switching from a mixed economy under the Modi government,” DMK Treasurer and former Tamil Nadu Deputy Chief Minister Stalin told PTI in an interview here.

“We see indications of the poor being handed out a pittance and corporate honchos and huge investors appearing all set to receive a bonanza of sorts,” he said answering a question on his assessment of Modi government.

Asked if a generational change can be expected in the DMK similar to BJP which worked in Saffron party’s favor, he said, “it is not possible to categorically say if Modi’s success is due to a generational change, a jump over and above generations or a generational gap.”

In DMK, Stalin’s father Karunanidhi continues to be the party president though Stalin is the next in command.

“As regards DMK, past, present and future generations join hands and work towards the goal unitedly,” he said indicating that Karunanidhi will continue to lead the party.

“I don’t think the BJP’s formula (of a generational change) will work in Tamil Nadu,” he said.

Asked about the chances of the return of those who had either quit or were expelled from DMK, he said, “The party is always ready to embrace those who repent.”

  Inflation to Drop

India has become more attractive than before, even more favorable than China, says Jim Walker, MD, Asianomics citing his bullish tone on India. Having concluded a 3-year consolidation phase, he anticipates another 20-25 percent growth in Indian equities.

According to him, Finance Minister Arun Jaitley is well on course to meet fiscal deficit target of 4.1 percent of GDP. People will be surprised at how low inflation can go in 2015, he says in an interview to CNBC-TV18.

Meanwhile, modest growth figure will give Reserve Bank room to cut rates quickly. However, he does not expect any rate cut in December 2 policy but sees 100-150 bps (basic points) rate cut in 2015.

The recent additional plunge in crude and oil prices is another shot in the arm for India, he adds.