India facing economic emergency: Rayareddy

Koppal: CM’s economic adviser Basavaraj Rayareddy on Saturday alleged that the country is facing an "economic emergency" and blamed the Centre’s economic policies for the falling value of the rupee, rising prices and increasing unemployment.

Addressing a press conference here on Saturday, Rayareddy criticised Prime Minister Narendra Modi’s economic policies and said the country’s financial situation is worsening by the day.

He said the West Asia conflict is being cited as the reason for the hike in petrol and diesel prices, but maintained that the war has no direct link to the increase in fuel prices. He alleged that fuel prices were raised by Rs 3 while people are being advised to reduce usage, and claimed there could be another hike within 15 days.

On rising gold prices, Rayareddy said the price of 10g of gold has reached Rs 1.6 lakh. He said demand for gold in India has increased while production remains low, adding that Hutti Gold Mines produces only around 1.5 tonnes annually, against the country’s requirement of nearly 900 tonnes. He accused the Centre of burdening people with higher taxes through increased customs duty on gold.

Claiming that the country’s total debt has risen sharply, he said India’s debt stood at Rs 52 lakh crore before 2014 and has now increased to Rs 216 lakh crore. Borrowing itself is not wrong, he said, but taking loans without increasing production and revenue is a concern.

Rayareddy said the weakening rupee is contributing to higher oil prices, and added that exports have declined while imports have increased. He said the situation will improve only if foreign investment increases.

Criticising the Prime Minister over expenditure, Rayareddy questioned the need for purchasing a new aircraft for travel, and alleged that public money is being spent unnecessarily.

On political developments in Karnataka, he expressed confidence that CM Siddaramaiah will continue in office for another two years. He also said there is a possibility of cabinet expansion or reshuffle before May 30, and stressed the need to provide opportunities to new faces.

Stating that there are no corruption allegations against Siddaramaiah, Basavaraj Rayareddy said several leaders, including Mallikarjun Kharge, are qualified to become chief minister.