With the government showing no sign of initiating any reforms in recent times, the move to allow FDI in retail and aviation, very well knowing its consequences in the political circles, must be hailed as a bold move. Manmohan seems to have gotten that "animal" instinct as some claim, and it is high time he got some. 51 percent in multi-brand retail, 100 percent in single brand retail and 49 percent in civil aviation is what the doctor has prescribed. This is a very positive step in boosting the sliding economy but not all states are on the same page as the Centre. They claim that FDI in retail would lead to large scale unemployment and destroy the livelihood of small traders, and eventually the already distressed farmers. U.P, Tamilnadu, West Bengal etc are some of the states who have taken a hard stance against FDI in retail. There is a widespread opinion that the Congress led UPA government has done this out of pressure from global investors but they are going to be facing an even greater pressure from within, from allies such as TMC led by Mamta Banerjee. They have threatened to withdraw support to the government and the next few days will tell us if it is really going to happen.
Adding to the woes of the aam aadmi, was another shocker from the government, raising the price of diesel by a massive Rs.5 a litre and restricting the supply of subsidised LPG cylinders for domestic purposes to 6 a year. This has led to outrage throughout the country as every burden is being passed on to the common man and no steps are being taken to weed out corruption. The interests and welfare of the public do not seem to be in the agenda of the scam-tainted government and they are resorting to drastic measures to revive the sagging economy. There seems to be no end to this ever rising price rise and the lack of a proper leadership results in erratic decisions being taken. The finance minister, P Chidambaram has indicated that there is not going to be any roll back in the decisions taken and the government does not feel threatened by its allies. Much was expected from the RBI in terms of rate cut but it flattered to deceive on account of high inflation, but neverttheless termed the government's decision as a "significant achievement". The fuel price rise is almost sure to raise the inflation further in the short term, but bring in some greater capital inflows over the long term, it said. Looks like there isnt going to be any relief for the common man anytime soon.
Adding to the woes of the aam aadmi, was another shocker from the government, raising the price of diesel by a massive Rs.5 a litre and restricting the supply of subsidised LPG cylinders for domestic purposes to 6 a year. This has led to outrage throughout the country as every burden is being passed on to the common man and no steps are being taken to weed out corruption. The interests and welfare of the public do not seem to be in the agenda of the scam-tainted government and they are resorting to drastic measures to revive the sagging economy. There seems to be no end to this ever rising price rise and the lack of a proper leadership results in erratic decisions being taken. The finance minister, P Chidambaram has indicated that there is not going to be any roll back in the decisions taken and the government does not feel threatened by its allies. Much was expected from the RBI in terms of rate cut but it flattered to deceive on account of high inflation, but neverttheless termed the government's decision as a "significant achievement". The fuel price rise is almost sure to raise the inflation further in the short term, but bring in some greater capital inflows over the long term, it said. Looks like there isnt going to be any relief for the common man anytime soon.
