"This (cutting subsidies to rich) would generate a sharp increase in jobs," said an editorial in ‘People's Democracy,’ the Communist Party of India-Marxist publication.  "The consequent expenditures by the people would enlarge aggregate domestic demand, providing the impetus for growth of manufacturing and industry," it added.

The editorial was commenting on the free fall of the rupee vis-a-vis the dollar and commentaries blaming the food security bill for this. "The anticipation of a higher fiscal deficit, we are told, has frightened international financial investors (FIIs) who are exiting Indian markets leading to the rupee's fall."

The editorial also pointed out that currencies of other developing countries too had taken a hit, with the South African rand falling by nearly 23 percent - more than India's national currency.  

"Surely, this cannot be attributed to India's Food Security Bill!" The editorial also said that the rich and India Inc were refraining from investing in production as their output can't be sold abroad due to the global economic crisis or in the Indian market due to falling purchasing power.

"Under these circumstances, the rich needs avenues to park their surpluses. They are  doing so by purchasing gold, real estate and foreign currencies. The sharp fall of the rupee likewise is due to the sharp rise in the demand for the US dollar and other foreign currencies."

The editorial added, "The answer to India's problem does not lie in the cries for greater reforms. These are cries for making the miniscule `shining' India shine more at the expense of the `suffering' India. The luminosity of `shining' India is directly proportional to the intensity of suffering of the `suffering' India."

(Agencies)

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