Recently, IMF came out with a statement that giving direct cash support to intended beneficiaries would add 0.5% to India’s GDP. That is a big sum Rs 55,000 crores (US$ 10 billion).
Dr Rangarajan’s recommendations on ‘doubling’ price of domestic gas from US$ 4.2 per mBtu to US$ 8.0 per mBtu have put fertilizers & power – prime user industries – on tenterhooks.
The ‘red lines’ drawn by Mr Chidambaram for reining in fiscal deficit during current fiscal & 3 years till 2016-17 have profound implications for resurrecting economy to high growth trajectory.
Mr Pranab Mukherjee in his Budget speech for 2012-13 gave a road-map for containing subsidies (fuel, food & fertilizers) at 2.5% of GDP in that year and further lowering to 1.75% in 3 years.
Announcement of new Urea Investment Policy (UIP) prompted a huge response from industry promising investments worth Rs 35,000 crores (US$ 6.5 billion). But, Rangarajan effect has put a question mark!
A recent decision of Central Electricity Regulatory Commission (CERC) to allow ‘compensatory tariff’ to a couple of independent power producers (IPP) has given them relief but, at huge cost to SEBs/DISCOMs & consumers.
The above are a few instances of numerous changes in policy & regulatory environment which affect different sectors differentially and could have ominous implications for health of the economy if the changes are not well conceived and properly navigated.
Since mid 80s and more so from 1991 when economic reforms commenced, I have endeavored to unravel the policy changes at the macro-level as also in most critical sectors (those flashing on ‘Home page’) viz., fertilizers; oil & gas; agriculture; power etc.
All published articles (close to 500) have been uploaded on this website for enabling a seamless feel of things happening on the ground. Effort has been made to ensure that viewers can glide to a subject matter of their interest with ease.
A contemporary touch to the policy scenario is available thru the articles published during the last 6 months or so & uploaded on this website. The web-links to the concerned newspapers are given.
My endeavor shall be to present a continuous update on unfolding policy environment and implications for growth of critical sectors and for ‘sustainable’ &‘inclusive’ development so crucial for bringing smile on the face of ‘aam aadmi’.
Your suggestions to enable me give deeper insights in to the issues are most welcome.