Inflation remains high.
Following set rules, RBI has increased the Repo rate. That is the only solution known to them to curb inflation, though it has not happened after so many of the increases in last few months. For a change, why can’t RBI stop increasing the repo rate and instead reduce it and see what happens?
The interest rates on home and cars will increase. And it will also increase many other rates. Companies from auto to real estate, infrastructure and fast moving consumer goods have expressed their angst against the RBI’s hike.
The oil companies have increased the price of petrol by Rs 3 per litre to maintain their profit margins. Transportation sector has started enhancing the rates. Travel agencies will also increase the price. The government agencies add salt onto the wound. And person such as the deputy chairman of planning commission calls the rise of petrol price rise as good news. Mother Dairy has increased the milk price again. All vegetables have gone costlier. The government would have increased the price of cooking gas too. The heat of the people’s anger has postponed the decision on the hike of the cooking gas price.
Government can’t reduce its taxes on crude or petrol that will reduce its collection that are channeled to the schemes such as MNREGA and food subsidies not because the common people will get affected but because the intermediaries will lose their earnings.
Allies of the ruling Congress government as well as the main opposition and its partners have opposed the rise of the petrol price. BJP went in protest march on the streets of the capital.
But will it make the government roll back the petrol price?
The situation has pushed the key manufacturing sector of Auto to go in slower lane. Investments have stopped. Some vested interests are also fanning labour troubles on irrational ground. As usual neither the central nor the stale governments are taking proactive steps to kill the problem. The major car manufacturer has stopped production. The trouble looks like spreading from North to south. Where is the governance? The real estate sector will also slow down.
The indecisiveness on land acquisition is already holding up many projects and thus industrial development. How many months will it take to the promised bill?
Helpless Indians want this inactive government to go but don’t know how. Anna and his team can protest for a notional utopia but can’t rise in revolt for such anti-people move. Can they do it?
The government knows following the practice of democracy and constitution the people will have to wait for two and a half years to change the present government. And those in the government are sure of their Aladdin’s lamp doing some miracles to make people forget the injuries inflicted on them.
Perhaps this was the time when the economist Prime Minister with his command of the subject would have come out with some innovative solutions to curb the inflation. But he talks on everything else but the inflation and slow down of the economy.
The main opposition is busy with Modi’s publicity festival. The left is engaged in organizing labour unrest. Can the person like Anna and his team get them involved in removing the miseries of the people? Or are they also the members of the millionaire club running the government and hardly realize its necessity for the common men and women in million?