July 2
Shift Course Now
Amidst much ado, we
finally have one article that is pointing to wards a small yet significant
change in the recent economic. With the resignation of Pranab Mukherjee,
Manmohan Singh has taken up the post of the interim finance minister. The place
that I felt he was always most suitable for. As we all know, he did form the
policies for the globalization phase of India pot 1991 and that has always been
his domain of expertise. Though the PM right now denies this, it is pretty
clear that the ex-FM office and the current interim office did had a slightly
different schools of thoughts. The current office is now looking forwards
towards changing policies for FDI and making a lot of other changes, the
absence of which has been repelling businesses and investors from putting in
their money. A lot of changes have been put into place to bring the economy to
stability. And possibly they might also be aiming at more flexible laws for FDI
and some more changes in the oil and gas laws. Why that becomes critical for
any government in the first place is explained by a simple example. India is
the fourth largest consumer and fifth largest importer of oil and oil
equivalent. Now the three companies that are ahead of us in consumption are
USA, China and Japan in both the cases with Germany added in the latter. Now
all of these are far better off than our own nation. The simple reason being
the gas prices. The rates are so high in India compared to anywhere else in the
developing and developed nations, that it becomes a big question of viability
for the companies to set up their plants in India. So we are pretty sure that
the interim office will surely be working upon the fuel prices as well and we
will get a better picture soon. The current office is also probing into the
coalition's sluggishness in implementing reforms and is asking them to act with
greater agility. Not being an expert on economics myself, there isnt exactly
much that I can share about this topic, but of course, we can rest assured that
at least for a short time, a more able finanace minister has taken the spot.
No comments:
Post a Comment