The nationwide conflict over the Citizenship Amendment Act (CAA) could not have come at a worse time as economic activities are at a minimal; industrial production is at its lowest; consumption is hit; purchasing power is ebbing and the prices of commodities are skyrocketing. Food inflation jumped to a 71-month high in November, adding to the people’s woes. Now these countrywide protests and violence against the Citizenship Amendment Act (CAA), leading to disruptions in traffic, transportation, internet and telecom services, are resulting in more losses and delays in production, which are not easy to assess. However, industry leaders maintain a studied silence over such issues lest they be tagged as political activists.

The Government should have launched a move to educate people on the CAA through public discussion, debate and attempt a national consensus. It also might have chosen a better time to bring the CAA so that the last fiscal quarter did not become victim of the public outcry that it should have anticipated in the first place. Now the fiscal health of the country has become a victim of the violence that has gripped the nation for days together. This announcement has sparked off yet another political battle between the Centre and the State, worsening the already tenuous relationship between the two. Many States and even a half-ally of the BJP, the BJD supremo and Odisha Chief Minister Naveen Patnaik, who supported the CAA earlier, is opposing the NRC now.

The CAA agitation has added to the woes of the Government also as it has come at a time when preparations for Budget presentation have begun and States are demanding their piece of the Goods and Services Tax (GST) pie. The States in their interactions with Finance Minister Nirmala Sitharaman are complaining that delay in release of their share of the GST is causing immense problems for them and affecting their financial and economic activities. For a better future, they are also seeking an increase in their fiscal deficit limits.

CAA is vital for national security because India is having porous borders with several countries, it may lead to huge influx of undesired people leading to further pressure on ever-increasing population. Secondly, the distribution of subsidies for the native poor people is stressed and Indian national’s needs are compromised. The Centre needs to call all stakeholders to the negotiating table to help boost the economy.

The nationwide conflict over the Citizenship Amendment Act (CAA) could not have come at a worse time as economic activities are at a minimal; industrial production is at its lowest; consumption is hit; purchasing power is ebbing and the prices of commodities are skyrocketing. Food inflation jumped to a 71-month high in November, adding to the people’s woes. Now these countrywide protests and violence against the Citizenship Amendment Act (CAA), leading to disruptions in traffic, transportation, internet and telecom services, are resulting in more losses and delays in production, which are not easy to assess. However, industry leaders maintain a studied silence over such issues lest they be tagged as political activists.

The Government should have launched a move to educate people on the CAA through public discussion, debate and attempt a national consensus. It also might have chosen a better time to bring the CAA so that the last fiscal quarter did not become victim of the public outcry that it should have anticipated in the first place. Now the fiscal health of the country has become a victim of the violence that has gripped the nation for days together. This announcement has sparked off yet another political battle between the Centre and the State, worsening the already tenuous relationship between the two. Many States and even a half-ally of the BJP, the BJD supremo and Odisha Chief Minister Naveen Patnaik, who supported the CAA earlier, is opposing the NRC now.

The CAA agitation has added to the woes of the Government also as it has come at a time when preparations for Budget presentation have begun and States are demanding their piece of the Goods and Services Tax (GST) pie. The States in their interactions with Finance Minister Nirmala Sitharaman are complaining that delay in release of their share of the GST is causing immense problems for them and affecting their financial and economic activities. For a better future, they are also seeking an increase in their fiscal deficit limits.

CAA is vital for national security because India is having porous borders with several countries, it may lead to huge influx of undesired people leading to further pressure on ever-increasing population. Secondly, the distribution of subsidies for the native poor people is stressed and Indian national’s needs are compromised. The Centre needs to call all stakeholders to the negotiating table to help boost the economy.