Dt : 15 Sep 2012
So finally the Congress government has decided to take some policy decisions which will help it to shrug off the tag of a non active government and also help in winning back investor confidence.The effect of the reforms announced have already been felt in the Sensex with the markets responding favourably to the governments decision.
First in a sequence of bold steps announced by the government is the hike of diesel and LPG .Fuel is a commodity which directly affects the cost of living for the common man .It can be clearly inferred that this would not go down well with the public.Yet the government which is already losing people's faith decided to take this tough decision.
Secondly allowing FDI in multi brand retail and in the aviation sector.Again this was a crucial reform which till date was stuck as almost all the allies of the government were against this decision.On FDI there has been a debate that it may kill the small retail shop owners.But the other side of the argument is that it will create employment and infrastructure which is much needed for the growth of the nation.Though this has the potential to affect a few people at the base,but overall FDI in retail is only going to bring in competition and thus reduce the prices .It is a good thing for the consumers.The government has to take care that the suppliers and retailers are not unfairly treated in this.
Getting Indian government to approve FDI may also be seen as a resounding win for the Obama administration who might have otherwise been struggling to convince the American business houses to support their reelection.As far as Indians are concerned we can only hope to get more work visas approved now :-) .This move has shown that India has always been supportive of free trade unlike some of the developed nations of the world .
So coming back to the discussion on reforms, the government has taken these bold steps knowing pretty well that it may fall tomorrow due to these decisions.These decisions though have proven for the first time in 3 years that this indeed was a majority government and that Congress indeed has the numbers unlike some of the previous Non-Congress governments.
They could not get black money back,could not cancel all coal allocations neither accept responsibility for the 2G scam.It was almost certain that the government would not comeback to power in 2014.But by taking these bold decisions , the government as a whole and the Congress in particular have taken a chance to win back the trust of the nation.
It might be too late in the day .But just for attempting these changes the prime minister needs to be given a pat on his back.You cannot always ridicule him .For this brave move you have to say 'Well done Prime Minister'.
So finally the Congress government has decided to take some policy decisions which will help it to shrug off the tag of a non active government and also help in winning back investor confidence.The effect of the reforms announced have already been felt in the Sensex with the markets responding favourably to the governments decision.
First in a sequence of bold steps announced by the government is the hike of diesel and LPG .Fuel is a commodity which directly affects the cost of living for the common man .It can be clearly inferred that this would not go down well with the public.Yet the government which is already losing people's faith decided to take this tough decision.
Secondly allowing FDI in multi brand retail and in the aviation sector.Again this was a crucial reform which till date was stuck as almost all the allies of the government were against this decision.On FDI there has been a debate that it may kill the small retail shop owners.But the other side of the argument is that it will create employment and infrastructure which is much needed for the growth of the nation.Though this has the potential to affect a few people at the base,but overall FDI in retail is only going to bring in competition and thus reduce the prices .It is a good thing for the consumers.The government has to take care that the suppliers and retailers are not unfairly treated in this.
Getting Indian government to approve FDI may also be seen as a resounding win for the Obama administration who might have otherwise been struggling to convince the American business houses to support their reelection.As far as Indians are concerned we can only hope to get more work visas approved now :-) .This move has shown that India has always been supportive of free trade unlike some of the developed nations of the world .
So coming back to the discussion on reforms, the government has taken these bold steps knowing pretty well that it may fall tomorrow due to these decisions.These decisions though have proven for the first time in 3 years that this indeed was a majority government and that Congress indeed has the numbers unlike some of the previous Non-Congress governments.
They could not get black money back,could not cancel all coal allocations neither accept responsibility for the 2G scam.It was almost certain that the government would not comeback to power in 2014.But by taking these bold decisions , the government as a whole and the Congress in particular have taken a chance to win back the trust of the nation.
It might be too late in the day .But just for attempting these changes the prime minister needs to be given a pat on his back.You cannot always ridicule him .For this brave move you have to say 'Well done Prime Minister'.