New Delhi, Sep 1 (PTI) The CPI(M) on Tuesday claimed that the latest official data on the Indian economy has revealed the "total devastation" that had begun much before the onset of the coronavirus pandemic in the country.

Asserting that close to 24 per cent contraction in the gross domestic product (GDP) is "phenomenal and unprecedented", the left party alleged the cumulative impact of demonetization, GST implementation and the "abrupt, unplanned and unprepared national lockdown" have all contributed to the "destruction" of the Indian economy.

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According to official data released on Monday, India's economy suffered its worst slump on record in April-June, with the GDP contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment.

The GDP contraction in the world's fifth-largest economy compared with 3.1 per cent growth in the preceding January-March quarter and 5.2 per cent expansion in the same period a year back.

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"The data released by the government yesterday shows the total devastation of the Indian economy that began much before the COVID-19 pandemic emerged," the CPI(M) said in a statement.

The primary cause for this is the massive fall in domestic demand, that is sharply declining purchasing power of the people, it said.

"Instead of addressing this issue by vastly enhancing public investments to build our much-needed infrastructure and general large-scale employment, which would have strengthened the demand in the economy, the (Narendra) Modi government is focused on pursuing the neo-liberal trajectory of making more funds available for investment by private corporates, giving them greater tax concessions and looting national assets," the Left party said.

The CPI(M) claimed that no amount of incentive for private investment can revive the economy and held that what is produced by such investments needs to be sold in the markets.

"There are no buyers, both globally and domestically. The CPI(M) has all along mounted public pressure on this Central government to increase governmental expenditures. The government, however, continues to pursue policies of constraining expenditures which, in turn, also drastically reduced government revenues because of the economic recession," it said.

The party said that massive hikes in public investments coupled with cash transfers and free food is the only manner in which any meaningful economic recovery is possible, along with providing people with some relief and livelihood.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)