Letters to the editor: Withdrawal effect

Jun 30 2014, 02:04 IST
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SummaryThis is with reference to the editorial “Logic of market reforms” (FE, June 27). Given the hubbub over price hikes, withdrawal of subsidy

Withdrawal effect

This is with reference to the editorial “Logic of market reforms” (FE, June 27). Given the hubbub over price hikes, withdrawal of subsidy in various sectors and the panic that the country is involved in, India appears to be undergoing a withdrawal effect. The blanket of subsidy that has been cloaking us for decades from the real-market scenario has reached a tipping point where it is no longer possible to support the dole-out economy. Successive governments had always deferred price hikes due to political reasons to a limit where our weak economic fundamentals had sent the rupee crashing to a lifetime low. Now the government has no other option but to hike prices along the entire supply chain, albeit in doses to get the country out of the subsidy mindset forever. As long it keeps deferring imminent price hikes, production will not increase, be it oil or electricity. The government needs to be tough on its stand of price hike and not roll back time and again. It has got to show some political muscle and must go ahead with market reforms. You rightly concluded that presumably that’s what the Prime Minister had in mind when he said tough decisions—that would turn people against the government in the short run—needed to be taken

Gaurav Gupta

New Delhi

Visualising an edifice

Apropos of the news report “Thirty days in office, Narendra Modi-led NDA working to keep promises” (FE, June 26), in just 30 days a massive edifice in construction cannot be defined to great detail, but it can certainly be visualised from its foundation that is now nearly laid. The new government is seen to being built on three huge pillars – a powerful PM, an all-pervading PMO and a singularly-positioned BJP president. In the single-minded pursuit of growth and given such minimal three-centred load-bearing dispensation, we may see the role of ministers, bureaucrats and party functionaries perhaps becoming increasingly secondary to just doing as per direction. The design may well enable few specific macro objectives of the government being achieved but to use the current pet management jargon of “last-mile delivery”, the benefits of growth will ultimately need a host of animated delivery agents, be it the minister, the babu or the party cog, to reach it to the common man. Top-driven and a demanding nine-to-five regimen may assist in carrying out directives on few select objectives of the day, but may not

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