Sharp decline (as well as fluctuations) in non-food grain prices on account of import competition in conjunction with rising costs of production and stagnant productivity (arising from collapse of public investment in agriculture), amounting to a double squeeze on fanners. These developments have led to great misery among farmers, brought out most dramatically and tragically by the suicides of thousands of farmers in Andhra Pradesh, and a smaller number in Karnataka, two states with blindly pro-reform governments.

Food security abandoned, with PDS prices sharply increased and misplaced attempts at targeting. Result: An anomalous situation of 65 million tonnes of food grains stocks with government (FCI), but increase in starvation deaths and mass hunger.

Sharp deceleration in employment growth (Table -5) Only a small part of it is attributable to improved school enrolment. The decline, especially steep in rural areas, is attributable, in particular, to the collapse of public investment, increase in imports, and the cutbacks in rural employment programes together with the reduction in input subsidies for agriculture.

Virtually no decline in percentage of population below poverty line despite growth in GDP. (Table-6). Though the government claims that the proportion of households below the poverty level came down to 26% IN 1999-2000 based on NSS data, it is now accepted that the methodology followed for assessing was faulty. Independent evidence has led most scholars studying poverty in India to conclude that the proportion below poverty line in 1999-2000 is not below what was observed in the previous "full sample" NSS round in 1993-94, and may be marginally higher. The most important point here is that while poverty rates showed a tendency to decline since the mid 1970s, this decline has been halted after the re forms process began in 1991. '

Use food stocks for a massive and productive food for work programme, thus creating rural public assets and improving infrastructure.

Raise tax-GDP ratio by enhancing direct taxes on the rich closing loopholes and punishing tax evasion severely.

Use thus enhanced revenue to build badly needed infrastructure in transport, communications, energy, health and education, and to revitalize public sector enterprises instead of pursuing mindless privatization at throw-away price.

Basic and thorough going land reforms.

Consistent decentralization and democratisation, involving devolution of both finance and functions to local bodies.

Reversal of indiscriminate import liberalization

A significantly enlarged role for the state, with greater investment being made in physical and social infrastructure from out of high tax revenues.