Rajiv

Posts Tagged ‘inflation’

Ushering Into Change phenomenon ?

In Blog, Business, Cartoons, Current affairs, News on September 15, 2012 at 12:48 pm

India is always known as elephant against China which is popularly known in circles as crouching tiger. A fast paced tiger pitted against a slow moving elephant. But over these 4-5 years the elephant has been pretty asleep while tiger has been roaring all thorough these years. BRICS- the group of emerging countries has been actually slowing down. Lots were being said about the Once popular and hero of India in 90s- Mr. Manmohan Singh, a well renowned economist who made India usher in a new world of emerging country.  Three years of silence was supposedly lots, finally he meekly-roared, puts some courage, puts his defiant foot forward. After 3 years of lull, two days made history in UPA-2. First increase in diesel price by 6 rupee, secondly, putting a cap on the subsidized LPG cylinders, Thirdly, allowing 51% FDI in retail and 49% FDI in civil aviation industry. All these measures made withing 24 hours after a washout of monsoon session of parliament was tremendous about turn by the Govt.

There is definitely Two perspective to the moves.

Govt perspective: Definitely fiscal deficit is a major concern which is getting to abyss at a fast pace. major oil companies are making huge losses on a daily basis where in all petroleum products govt provide huge subsidies be it petrol, kerosene, diesel or LPG. Definitely FDI in retail & Aviation shall mark a turn around  in ailing airline industry and will boost retail trade in India with wal-mart like major players being part of Indian consumers.  Govt claims to raise an additional Rs 20,300 crore for the Oil companies.  Economist are all cheers for these measures. It might give kick start to all due reforms pending.  Finally the so called ‘Policy-Paralysis’ has come to end. Market, elated with the news gained at SENSEX.

“The decision of the government to hike diesel prices and LPG (beyond six cylinders) are borne out of necessity. CII fully understands the economic compulsions for such a decision,” CII Director General Chandrajit Banerjee said in a statement.

“Diesel has larger weight than petrol, it (hike in petrol price) will have inflationary effect but it is a good decision. It will put pressure on inflation in short but in long run will have good impact on economy,”  – Crisil Chief Economist D K Joshi

The middle class woke up to double whammy this morning. It has added further burden to already agitated Indians. At this juncture, when the prices of basic commodities are sky high and inflation is refusing to buzz despite all RBI efforts. it’s is expected to go up by another 0.40%. The aam aadmi, the common man is the one who suffers. He has his valid reasons. When the Govt is all down with plethora of corruption accusations and of misusing tax payers money on cases like 2G, Coal-gate, Common wealth games issues. What a common man is fed up of is that the Govt crib that it has no money to pay for the subsidies (implied)  then what is happening to the tax payers money.  All the money is being used for unnecessary study tours, for renovating Planning commission office STATE OF ART-TOILET (costing crores), for private presidential trip,  so on and forth. Definitely, when the the hard earned tax payers money is being drained with such apathy, govt will be out of money to pay for other necessities.  Common man is on the streets crying foul. Yesterday, I was watching The Newshour debate in a TV news channel- Times Now, where a well known corporate figure  supported govt in case of putting cap on the number of subsidized LPG cylinders. His point of view was ” a PRUDENT family shall need at the most 6 cylinders in an year” that meaning half-a-cylinder per month. Well I have a doubt about what a prudent family means? Personally I alone use one cylinder in a one and a half month without much of cooking and never to waste. How come a prudent family(might be ONE member family) require only 6 cylinders in a year.

An article on How price hike affects common people.

Top 10 Impacts of Diesel Price Hike

Political fights:

These announcement has added fuel to the already fuming relationship between Govt , allies and opposition. The two major parties supporting Govt at the centre SP, led by Mr Mulayam Singh Yadav  & TMC led by Mamta have raised a strong concern against he policies announced. However, public knows the drama being played by them. They allready know that they are just pretending to showing empathy in front of public just in order to rake in the votes for coming elections- Public Posturing. The main opposition NDA has got another weapon to fire.

Government facing a double sword from political parties on one hand and public on the other is putting a brave face with one liner- ” Tough Times need Tough decisions”. This is hard to say what shall be the final outcome. I mean weather govt can stand to all these pressure or submit.  The coming days will be testimony to it.

Related Articles:

  • The unusually large diesel price increase suggests that economic reformers have persuaded Congress leaders of the urgency of curbing the budget deficit – now about 6 per cent of gross domestic product for the central government alone – in order to stave off a threatened downgrade by credit rating agencies that would reduce Indian sovereign debt to “junk” status. – FT Article

A day with UNIDO Director General

In Uncategorized on January 22, 2011 at 4:15 pm

This Post was written a year ago, when Mr. K K Yumkella visited LIBA for a Guest Lecture.

After partying heavily last night at Rahul’s birthday bash, we did go to sleep, when clock struck 3:00 am.  Though we didn’t have classes today (probably coz I bunked one) I had a busy day, sleeping 😉  .

Morning greeted us with the news that It was compulsory to attend todays guest lecture. We had our own apprehension about the exam  starting on monday onwards. We were half dead after going through the list of  marks required to avoid ‘D‘ grade. Still students came to auditorium, cursing the organisers.
 

Image via aeonbox.com

 

Later we came to know that an eminent personality, Dr. Kandeh K. Yumkella, Director General UNIDO (United Nation Industrial Development Organization) was to address the gathering along with Mr Anders Bech , CEO of FLSmidth.

Amidst all these tension Address of Dr. Yumkella was a pleasant surprise. He belongs to Sierra Leone ( Which he described was among the poorest countries in 1990s). People there in Sierra leone still have problems of drinking water, electricity and means of procuring food.  It was inspiring when he said ” If I can be Director General despite all adversities I faced, then you people sure can achieve what you want.”   He said there are thousands of topics which is debatable when you view it witha different perspective –  the poor and the rich.

It is globalization which has helped India, China and several other developing countries to  grow at such a whooping rate. But it is the same globalisation which has affected Sierra Lones economy. Whenever there is any crisis in financial markets of US and Europe, Sierra Lone is hardly hit. Inflation has taken its tall all over the world. It’s hard to explain to the poor people, it is some outward force which has resulted into soaring food prices, which they can’t afford. A glass of rice (still a measure of rice in Sierra leone) costs more than what it was few years ago.
Bio Energy, another of topics which he discussed, has become a major focus especially when the fossil fuels are depleting rapidly and the Oil prices are skyrocketing. It has given rise to serious food crisis in several African countries. He cited an example of a debate on Bio fuel, when a gentleman said ‘My bio fuel is better than yours, I use sugarcane to produce it  and I had done it since long time and nothing happened and now when you are doing. it has led to crisis.’
Carbon Credit, again a major issue he threw light on. Some countries are following Carbon credit. Though some serious misunderstandings exist but it will be resolved soon.

Dr Yumkella impressed all of us with his pleasant personality and knowledge.
The issues he raised are quiet a concern even to date.

Onion & Indo-Pak

In Humor, News, Pictures, Politics, scribblings on December 24, 2010 at 7:39 pm

Once I got angry and walked out of home, and came the usual sarcasm  of The parents  ” जाओ जाओ, जब आटा दाल का भाव पता चलेगा, तो खुद ही वापस घर आओगे” [go-go! you will soon come back ,when you get to know the prices of dough and pulse]. But sorry,  the dialogue is a decade old. Now in the present context, they might be saying… go son go! I’m sure you will come back when you get to know the onion prices 🙂 .

Onions

Onion, Politics & Oil

Onion prices have a history of toppling governments in India. In 1998 Bhartiya Janta Party (BJP) , now in opposition at center, was defeated in Delhi state election after a six fold increase in Onion prices. And under the present government, prices have skyrocketed fueling inflation beyond reach of mango man. UPA govt is trying all possible methods to check prices. It has already increased export duty by approx hundred percent, railways are running special trains to cater to the Onion deprived areas. Agri minister Mr Pawar is facing ire of junta and Mr Prime minister for not having monitored the prices. Mr Prime minister fears that history might repeat  and loksabha polls at round the corner public might not forget the onion deprivation they faced under UPA rule.

Onion prices seems to be global crisis with middle east countries also facing the onion depravity. “Onion could be next Oil”. Stay tuned, by next decade if India can harness its potential to save Onion from flurry of “Indra- The Rain God”, it would be in a position to bargain  ‘Oil ‘ for  ‘Onion’.

Indo-Pak

Reports suggest that govt is not keen on importing onions from neighbours, but truck loads of onions is coming into India through WagahAttari Border and is being directly flown to South India. Now you might ask “why south India that too directly??” – very valid question, you know how difficult life would be for me, if I don’t find onion in sambhar or masala dosa and mostly Onion-garlic pickle.

I feel, what the long and rusty meetings between the diplomats of two countries or the cultural exchange could not achieve, “Onions can do“, it can create Wonders !   🙂 Yes you heard it, Onion can really mend relations between so-called arch rivals India & Pakistan.

It has got potential to  repair dwindling Pak economy by employing terrorists truck drivers  and definitely Manmohan Singh is going to avoid public ire and comments about ” Not being able to control ONION prices, despite being an imminent economist himself”. He will be happy about it.

Three cheers for hike in prices ! for the sake of Indo-Pak relations.

Indo-Pak


So I’m writing a petition to govt to consider import , those in favour, please sign the petition 🙂 here under

 

P.S :  I’m gonna miss cricket battle between India & Pakistan

%d bloggers like this: