The problems lie in 1. Bad handling of macroeconomics 2. Not controlling the banking system in their investments & credit during the time of growth of economy 3. Loss of focus on agriculture 4. OIL OIL OIL OIL OIL 5. OIL OIL OIL OIL OIL
The solutions: 1. Arrest the job cuts & Create more jobs with directed investments & credit in the industries that are suffering due to price rise of input raw materials, especially engineering industries. 2. Increase the investments in Cement & Steel plants & their supplies for increase in production & hence meet demand & arrest the price rise. Duty reductions are no solution. This will consequentially reduce input costs in Infrastructure industries & will allow them to complete without cost escalations. 3. Increase investments in public infrastructure there by creating more jobs in direct & indirect way. This will automatically push development. 4. Increase institutional credit to agriculture. Drive agricultural extension services for proper guidance to farmers. Properly regulate agricultural markets. 5. Customs duty reduction for OIL. 6. Give norms to banks for increasing interest rate on certain kind of loans such as personal loans etc. Taking away liquidity from the market by raising CRR is no solution. This will cripple investments in housing & automobiles by common man. This coupled with job drying will cripple India growth story. Yes for sometime micromanagement of consumption needs to be done. Then only growth story continues.
You have the best economist as PM, one more best economist as FM, one more as Deputy Chairman Planning Commission. The result - Indecision - Inaction - Price Rise!!!!!!!!! Economists are better suited for advisory role. No decision making. Make Manmohan FM/RBI Governor again. We can have inflation cut down.!!!!! No jokes. This Govt has failed miserably in its analysis & solutions of problem. Really it is surprising that govt is blaming everything to international petrol price for all ills with Indian economy. What about the failure on agricultural front? You only made policies for SEZ that would turn vast agricultural tracts into what you dont know. Now there is no agriculture as well as Industry. The availability of credit was linked to the US. What about our financial Institutions? They started investing in the US subprime & personal credit rather than revving up economy & industry when the times were good ie., during the last decade. Today complaining CRR sucks is childish. Cutting CRR is no solution. You suck liquidity citing it as reason for price rise. You site international petrol prices for price rise and you cant control it. Tell me is YVReddy & RBI insightful. Industries are dying without availability of credit. Agriculture is dying without the lack of it. They cant afford costlier inputs & you raise CRR & hence interest rates. What logic!? Blunder!!! Make mechanisms so that spurious spending is curtailed & money is channeled to industrial & agricultural credit.
I think ...its not easy nor difficult if few things are taken consider . Dollar rate let it come down ...automatic ..., less of export .., chaper import .., less of high end salary job .....thus reduce inflation.
2nd ...Arrest speculators .., Land should be charge with minimum retaining charges so that every land is to be used in a proper way
There are two stages of the Govt-- one the politicians and two their chamchas--the secretaries who in turn run the govt
Thepresent govt has gone into the election mode and the second govt is now totally looking after the job and they are making hey. Thus the the Babus who have been paid extraordinarily higher for being corrupt are calling the shots and they are making extra money and this time comes for them only once in five years. There is no check system in place and they wake up quite late purposely to announce import of huge materials to check the price rise. Each purchase is huge money for all the people who matter. So the price rise will be controlled after we have ordered enough and caught some hoarders and release them after taking some bribe. this all a quick making of money for elections. Hell with the ordinary person with whose money they fill their own coffers. this is the reason why very few politicians have a nice children and have a nice death.
RE:price rise
by davis on Apr 19, 2008 10:39 AM Permalink
Rising price is a curse for our country. Middle class people dont bother about which Gov. is in force. They only want that essential products price must not take so hike, private sector dont pay good salary who are only 12th pass. How they will manage to earn there daily life. That is the reason of corruption, killing of people for sake of money. What ever Gov., will be in force there moto is to serve the middle as well as poor people of the society. But now Gov, use to alligate other opposite party etc. Media focuse more on Celabirities but a poor person care a dam for those. If Gov., can do something it will be good otherwise who cares, let corruption, therfts, rape e.t.c., rise with inflation. every person is so busy for earning his lively hood that who cares for the countey. It is a bitter truth and no one can deny from this. I had written this for no reason but this is a fact what all the person of the country is thinkig.
In Tamil Nadu and other States across India a realistic solution to reducing ALCOHOL ABUSE is to permit the LIQUOR SHOPS and BARS to be OPEN ONLY FOR 3 or 4 Hours a day in the evening. Nowafays we can see the arrack, wine shops being opened at 6 AM - early morning you can see people having a drink before going to work. Imagine the level of efficiency! Also by closing shops early the average 'drinker' will go home to his family a bit sooner and probably be less drunk.
Anbumani Ramdas is doing a great job in spreading awarenes about the dangers of tobacco and alcohol addiction. I suggest that he should also make it mandatory to print a WARNING on SWEETS saying that it could cause DISEASE & DEATH!. In India we consume over 1 Lakh tonnes of Ghee/Dalda Sweets everyday. It is loaded with carbohydrates and cholesterol. it is the largest cause of kidney failure, Heart disease, diabetes and premature death in India.
Congress Government is a heavan for the looters. Samuel Raja Sekar Reddy in the name of water projects,Indira projects, Rajiv Project,sonia rice etc., looted AP Government to the tune of 1,50,000 crores of rupees, given some fund to Congress, the rest invested 25000 acres in each state of AP,TN, Karnataka and lands in Indonesia & Brazil, apart putting investments in Brahmani steels, GMR, Raghuram Cements, Sathabdi Investments, Sakshi news paper,Swarna Bhoomi (MARG) etc., like wise each Congress Cabinet Minister including Chidambaram earned illegal money by way of bribes in a systamatic way where no one can catch them. no use in talking about the price rise & inflation. unless you hang them their is no peice in economy. VENKATESWARLU YELAMADDI MANCHUKONDA POST, KHAMMAM, DIST 9841408222 OR 9442667038
at the time of election they said this slogan "congress ka haath garibon ke saath" and now this is prooven absolutley correct. now they hav touch even the poorer to poorer person to full their pocket, becose petrol, gas, income taxe increase may be left some poor person uneffected, but now, bye the hike in the prices like, vegeis, pulses, eatable oils, they hav effect the most smallest & poorer pocket of the country. and after all this their minister like, sheila ji, praful ji, rajeev shukla ji, they are making comments like all public is fool. comments like "logon ka khane ki aadat badal jaane se mahangai aayi hai" delhi ke logon ke paas bahut kharch karne ke liye bahut paisa hai jo" yeh sab to NDA ogvt ke samay bhi hua tha, Aur Humne to phir bhi KErosene ke Rate nahi badhaye hai". is these comment make any sense..
Mr. Kapil Sibal said recently that this UPA Govt is not responsible for this rise in inflation. He justified his statement by saying that the inflation world-wide is also high. May be he is right in his assessment.
But then the credit for keep inflation under check in the last four years should also not be taken by this UPA Govt. It cannot be that when things are ok, it is due to the UPA and when they are not, then it is a world-wide phenomenon.
RE:Price rise: Who is to be blamed?
by Anupam Verma on Apr 15, 2008 02:12 PM Permalink
Congress is blaming NDA govermant for inflation thakns god they are not blaming say 1977 janata party goverment
RE:Price rise: Who is to be blamed?
by mani bhushan on Apr 14, 2008 11:55 AM Permalink
ONLY PUBLIC WHO DONT THNIK AND JUST VOTE TO THE PERSON BASE OF HIS CAST, RELATIONSHIP AUR FOR SOME MONEY. THEY HAV TO THINK IF SOMEBODY IS GIVIG MONEY TO BUY THERI VOTES, THEN HE/SHE WILL DEFINATLY GET IT BACK AFTER BEEING A MINISTER..
RE:Price rise: Who is to be blamed?
by Mr.Javed on Apr 14, 2008 12:18 PM Permalink
Voting is only a Right, Not A Power.
People do not have power to take decisions. Its the govenment decisions and their decision wholly relies upon their expendiure & revnue figures. People of the Nation are giving power to Government of India in every way, by vote, by taxes and we are only spectators to larger extent on how they handle our country & us.
