Governance (91)
Inflation in India is indeed a complex subject. Interest rate hike (or cuts) alone are not the solution to tackle inflation.
As a loyal foot soldier Sibal continues to defend the indefensible.
"If that logic were right, then it is true of giving away any public asset at a lower price or an institutional price or for free. Whether it is land for a hospital, land for a school, air waves for the telecom sector." That was Kapil Sibal articulating his point in (mock?) seriousness in a chat show. And the logic referred to at the outset? It was obviously about auctioning coal blocks.
The weighted average price of Indian crude imports was approximately US$ 22 a barrel in 2001-02. A decade later in 2011-12 this was well in excess of US$ 110 – a 400% increase!
Put differently, the US$ had significantly depreciated against crude oil – a fact that is lost on most debating the diesel price rise.
That is not all. The Rupee was approximately Rs 48 to a US$ in 2001-02. Over the decade it has depreciated by close to 12%. Put pithily, the Indian consumer faces a double whammy when it comes to the diesel price increase – a massive depreciation of the US$ against crude oil and on top of it, a depreciation of the Rupee against the Dollar. Hence, in Rupee terms crude has increased close to 500% in the past decade.
More...
Random Articles
- Skewed policies to blame for diesel hike in Governance Read 2356 times
- பெட்ரோல் விலையை பாதியாகக் குறைக்கலாம். in Tamil Articles Read 3561 times
- AIADMK the only alternative... in Press gallery Read 3427 times
- News item - Hindu Business Online on 18 December 2008 in Press gallery Read 2635 times
- Bring media and NGOs too under Lokpal in Governance Read 2827 times
- Why China is ahead of India in General Read 3185 times
- The coming collapse of the US dollar in Global Economy Read 2426 times
- Decline and fall of the Rupee in Indian Economy Read 2111 times