LDF govt lacks policy to address Kerala’s economic challenges: NDA

The Left Democratic Front (LDF) government's first year in office Kerala shows it does not really have an effective economic policy to address state's unique challenges, says Rajeev Chandrasekhar, Rajya Sabha MP and Vice-Chairman, NDA, Kerala.

Speaking to BusinessLine , Chandrasekhar said that the remittance-driven economy is facing a huge challenge in view of the drying of the 'gusher' in the Middle-East.

No back-up

The inflows over the past two decades have made the State a net consuming economy with no manufacturing or agriculture base to fall back on. “There's hardly anything in terms of even IT either for a State that had started off with a definite advantage. IT now has at best a presence along the fringes of the industry landscape.”

So the problem with government is that their economic model that hinges on public money and the pubic sector, does not work at a time when the overall economy is contracting. “You need private investments in huge amounts in infrastructure, manufacture and agriculture and to bring that in you need a certain kind of economic and governance model,” Chandrasekhar said.

The history of political violence and murders is the biggest impediment to private investments – this need to be looked at outside the prism of pure politics, he added.

Political violence

No investor will be willing to put money into a State which everyday is in the news for political violence generally creating a perception that there is a serious law and order situation. This is central to the future of Kerala’s economy. So the Chief Minister must take the initiative if he is serious about reining in violence and stop politicising the police, he said.

According to Chandrasekhar, the Chief Minster is indirectly complimenting the Centre when he points to fast-paced work on the Gail pipeline project and widening of the national highways. “The good news here is that the Central funding in the state has gone up in the last one year. But there is nothing to show that the state has been able to attract any private investments. I’m willing to accept that the LDF government is less corrupt than the previous one but there are glaring examples that show the insincerity of the government.”

These pertain to impeding the good work by a Deputy Collector against encroaches in ecologically-sensitive Munnar hills and targeting of TP Senkumar, the DGP.

Viable alternative

“You’re threatening them for doing their job.Even the High Court of Kerala has expressed dismay at the goings-on,” Chandrasekhar added.

Suffice to say that the NDA is becoming a viable political and workable economic alternative to the CPI(M)-led LDF and Congress-led United Democratic Front (UDF) in the state.

This is because voters have two performance cards before them now – one year of governance of the LDF in Kerala and the third of the BJP-led NDA at the Centre.

It makes for a simple comparison but evocative contrast. The Modi government at the Centre has led the economy out of a morass compounded by many years of hyper inflation, high current account deficit (CAD) and now investments to one marked a raft of FDI flows, low inflation and CAD and fast growth.

The NDA’s credentials and proposition to Kerala are now very obvious. "For the first time, the NDA is able to show up itself as the real alternative for the state," Chandrasekhar said.

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