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Last Updated: Tuesday, 28 June, 2005, 12:49 GMT 13:49 UK
Communists lead protest in India
Protester clashes with police in Delhi
Protesters clashed with police in Delhi
India's Communist parties have led protests across the country against the government's economic policies.

The left-wing parties are angry at a recent increase in fuel prices.

They also oppose the government's policy of selling off some of its stake in state-owned corporations to raise funds for investment.

India's coalition government, led by the Congress Party, relies on four left-wing parties to maintain its majority in parliament.

Police in the capital, Delhi, used batons and water cannons to push back hundreds of demonstrators protesting against the fuel price hikes.

The present hike is unjustified
S Ramachandran Pillai
Communist Party of India

Protesters carried placards which read: "Take back petrol, diesel price hikes."

Elsewhere, trucks and commercial vehicles stayed off the roads as part of a "wheel-jam" called to protest against the hikes.

Earlier, the Communists had announced they were suspending participation in the policy co-ordination panel with the government.

However, they said their protests were not aimed at bringing down the government.

Transport strike

But the left-wing parties are angry at the government's decision to raise petrol prices by 2.50 rupees ($0.06) a litre and diesel by 2.00 rupees following an increase in global crude oil prices.

"The present hike is unjustified," S Ramachandran Pillai of the Communist Party of India told Reuters.

"It is inflationary, hurts an average person and will have a domino effect on prices overall."

Analysts say although there is little danger to the government, the protests are a warning to the Congress.

"When your own coalition partners take to the streets, it's time to sit up and take notice," said political analyst Yashwant Deshmukh.


SEE ALSO:
Oil prices surge to record level
27 Jun 05 |  Business
New generation heads India's left
11 Apr 05 |  South Asia
India's communists vow opposition
12 Jul 04 |  Business


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