NDA Government No Different In Tackling Economic Crisis: Analysts

Saying the government should be concerned not just with price stability but also with the stability of output and employment, Nayyar described the massive slowdown in manufacturing due to "neo-liberal orthodoxy in policy" as "the beginnings of de-industrialization in India once again".

"The mantra of liberalization and integration with the world economy has led us to the path of de- industrialization", he contended.

The share of manufacturing in India's GDP has come down by 3.5 percentage points, while investment has declined between 5 to 7 percent, Nayyar said.

"Public investment needs to rise in infrastructure and agriculture, while in the monetary policy, there is the crying need to reduce interest rates to increase investments", Nayyar said.

In fact, trade policies by liberalizing regimes have so crippled the capacity of domestic companies and affected India's export competitiveness that participants quasi-unanimously called for scrapping free trade agreements that are working out unfavorably for the country.

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