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RE:Economic reforms and Manmohan Singh
by nickel biswas on Feb 12, 2007 12:21 AM

Do you know why there are price rises? Partly, it is because of the increased cost of oil, which is beyond the PMs control. But, it is also due to 2 other factors:
1) The high level of public debt in india. The banks have to put all their resources into financing the HUGE govt debt, instead of financing loans for the common man. This leads to higher interest rates for businesses, individuals and farmers; which is an extra cost that they pass on the the consumers. If you want to blame someone for this then blame the left front because they spend so much money on wastful programs like the job guarantee act, most of which goes into the pockets of politicians.

2) Lack of infrastructure. Economic growth, like the kind India is experiencing, will stimulate increased demand as people have more money to spend. But, if there is not a corresponding increase in supply to balance this demand, then the prices will naturally go up. If you want to blame someone for this then blame the left front; almost every attempt to build infrastructure and factories are met by protests by the left front.

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The above message is part of the Discussion Board:
Is this the last of eco reforms?