Dr Manmohan Singh sticks to his bitter pill-reforms and says its time to 'call a spade a spade.' The father of Indian economic overhaul was appreciated during his tenure as the Finance Minister in 1990s. But the same man after being the Prime Minister received wide criticism from the oppositions, for his reforms. But this time the PMO clearly signifies that there is no carrot left and reviving the economy is prime on the agenda.
On Friday Dr Singh made an open appeal to the general public to support him. Mr. Singh argued that rising global oil prices meant that the government had to reduce popular subsidies on diesel and cooking gas or risk a rapidly higher fiscal deficit. He urged public not to be misled. He also said that the hardships were only for few days and once the economy gets back on the progress wheel, the impact will be least felt.
The irony is that the BJP party which had first marketed the FDI in Retail concept is now taking a U Turn on the issue. Whatever be the issue FDI in retail is here to stay as per the signals sent out by the business segment. And that shows up as the BSE Sensex extended gains yesterday ending at a rise of 415 points to firmly trade above the key 18,500 mark while the broader Nifty advanced nearly 100 points to take out the 5,650 mark.
Business leaders and many economists praised the moves as critical for containing India’s fiscal deficit and attracting foreign investment. The proposed 51 percent foreign direct investment proposal into the retail segment is supposed to give the necessary impetus for a robust economy. (With inputs from internet-AW AarKay)