Hundreds of thousands of Indians angered by sharp government-ordered price increases protested across the nation Thursday. In the capital alone, more than 10,000 demonstrators were arrested outside Parliament.
The rallies capped three weeks of outcry over the economic policies of Prime Minister Rajiv Gandhi, who is facing a new crisis of confidence in his effort to finance an ambitious development program a little more than a year after his landslide election victory.
Led by about 100 politicians opposing Gandhi`s Congress-I party, as many as 20,000 chanting protesters defied police orders and tried to march on the legislature. Groups of women wailed, beat their breasts and called out, ”Down with Rajiv Gandhi!”
Inside the building, President Zail Singh defended the price increases before the opening session of Parliament, which was boycotted by opposition lawmakers.
The 10,000 people arrested, who demonstrated in the nonviolent tradition of Mohandas Gandhi, were released in a few hours without being charged.
The government`s economic plan includes stiff price increases for petroleum products, food and other commodities whose supply and distribution the state controls. The bottom line is that higher prices mean more money for the government.
The government announced this month that it will raise the price of fuels up to 20 percent. Though officials said the increase was intended to curb India`s growing energy appetite, it came just as international oil prices plummeted. The move is aimed at cutting growing oil imports that have contributed to India`s expected $6 billion trade deficit this year.
Opposition parties have accused Gandhi of bypassing Parliament by announcing the sweeping increases before the presentation of the annual budget next Friday. Shocked by the outcry, the government partly backed off only five days after the announcement and reduced the size of the increases.
Still, Gandhi`s political opponents have stepped up criticism, branding the price increases ”pro-rich policies.” The opposition parties led a successful shutdown of businesses in the capital Feb. 11 to protest the price hikes, and they have called for a nationwide general strike next Wednesday.
The higher prices also have embittered India`s middle class. Since liberalizing economic policies a year ago, Gandhi`s government has been trying to woo the middle class with tax breaks and a new emphasis on consumer products.
