India overtakes Japan as world's No 3 crude importer

[Rajaraja Chola]

I heard about 40% of India's budget is just money for subsidies. That's like $160B a year.

Not sure about 40pc. But yes, a large part goes into subsidy, that we are left with no credit for development schemes likes road, hospitals, schools etc . So we are taking debts from fixed deposit reserves in bank and postal offices, and pay back with interest.
Costs should have been raised step by step slowly. But in the last 15 years or so, fares for public transports, fuels were not raised, putting pressure on govt. So now when it bites our CAD, everybody are waking up. Even now, they cannot rise prices arbitrarily. All people will be affected including me.

 

[kbd-raaf]

Not sure about 40pc. But yes, a large part goes into subsidy, that we are left with no credit for development schemes likes road, hospitals, schools etc . So we are taking debts from fixed deposit reserves in bank and postal offices, and pay back with interest.
Costs should have been raised step by step slowly. But in the last 15 years or so, fares for public transports, fuels were not raised, putting pressure on govt. So now when it bites our CAD, everybody are waking up. Even now, they cannot rise prices arbitrarily. All people will be affected including me.

India will need to feel the pain of reduced subsidies for a few years in order to really take itself forward.

Would the Indian voter forgive a NaMo government that drastically reduces subsidies?

 

[Indischer]

I'm well aware about the payment arrangements we have with Iran (courtesy sanctions). I made a generic statement that to buy crude oil, one needs to trade in $$$$.

As other members pointed, we need oil, to church our economy. That is why I asked Jarves, 'how importing oil is bad for our economy'???

While rising demand for Crude Oil and NG is a sign of economic growth, it isn't necessarily a good development if most of our requirements are to be imported. That will offset the benefits of growth as a significant portion of the wealth created from such imports will have to be pledged back towards more imports, reducing the gains.

India will need to feel the pain of reduced subsidies for a few years in order to really take itself forward.

Would the Indian voter forgive a NaMo government that drastically reduces subsidies?

1. Has the Indian Voter ever cast his vote on the basis of informed decisions on Policy matters?
2. Has the NaMo manifesto announced any reduction in subsidies?

 

[Rajaraja Chola]

India will need to feel the pain of reduced subsidies for a few years in order to really take itself forward.

Would the Indian voter forgive a NaMo government that drastically reduces subsidies?

I am not sure. Modi is pro- corporate, and I assume, that he will take steps to reduce subsidies and to increase cash flow. Even today UPA increased the subsidised LPG cylinders from 9-12 increasing subsidy burden by 6000 crores anually.
I am for reducing subsidy, albeit slowly, so that it does not pinch common man. It will help the govt to invest in other areas.
And also I believe, mininum wage rates for different level of jobs in India must be fixed, seeing the conditions of peons in my office.

 

[kbd-raaf]

While rising demand for Crude Oil and NG is a sign of economic growth, it isn't necessarily a good development if most of our requirements are to be imported. That will offset the benefits of growth as a significant portion of the wealth created from such imports will have to be pledged back towards more imports, reducing the gains.



1. Has the Indian Voter ever cast his vote on the basis of informed decisions on Policy matters?
2. Has the NaMo manifesto announced any reduction in subsidies?

1) lol, India wouldn't be in this state if they did.
2) Don't think there is a 2014 BJP manifesto yet.

 

[SirHatesALot]

Subsidies aren't going anywhere be it BJP/INC

 

[godofwar]

1. Has the Indian Voter ever cast his vote on the basis of informed decisions on Policy matters?

One day my friend, one day...

 

[SirHatesALot]

lol, India wouldn't be in this state if they did.

Subsides are needed not all people can pay 1200 inr for 1 cylinder of gas.
I am for targeted implementation of these Schemes.

 

[Indischer]

1) lol, India wouldn't be in this state if they did.
2) Don't think there is a 2014 BJP manifesto yet.

Exactly! And BJP too will not bite the bullet as far as decreasing/removing subsidies is concerned. A series of dimwitted short-term political gains are all that come to the mind of our Politicos. Nobody likes to be termed anti-poor by stating in their manifestos that they'll cut down on a few subsidies.

One day my friend, one day...

Nothing wrong with Optimism as long as it's tinged with a touch of realism. Hopefully, issues like caste, religion etc will no longer be the primary Vote-magnets.

 

[egodoc222]

Exactly! And BJP too will not bite the bullet as far as decreasing/removing subsidies is concerned. A series of dimwitted short-term political gains are all that come to the mind of our Politicos. Nobody likes to be termed anti-poor by stating in their manifestos that they'll cut down on a few subsidies.



Nothing wrong with Optimism as long as it's tinged with a touch of realism. Hopefully, issues like caste, religion etc will no longer be the primary Vote-magnets.

add to that class based politics...happens to be new mantra... everybody falling for it!!!

 

[kbd-raaf]

I am not sure. Modi is pro- corporate, and I assume, that he will take steps to reduce subsidies and to increase cash flow. Even today UPA increased the subsidised LPG cylinders from 9-12 increasing subsidy burden by 6000 crores anually.
I am for reducing subsidy, albeit slowly, so that it does not pinch common man. It will help the govt to invest in other areas.
And also I believe, mininum wage rates for different level of jobs in India must be fixed, seeing the conditions of peons in my office.

He will.

A small part of me was hoping that the UPA would smell the change in the wind and reform their politics to a more growth and development oriented agenda.

But no, they're continuing with subsidies, reservations etc.

Subsides are needed not all people can pay 1200 inr for 1 cylinder of gas.
I am for targeted implementation of these Schemes.

Yes, that's true. I'm hoping that Modi will set up systems for gas distribution through pipes. (has he done this in Gujarat?)

 

[Rajaraja Chola]

He will.

A small part of me was hoping that the UPA would smell the change in the wind and reform their politics to a more growth and development oriented agenda.

But no, they're continuing with subsidies, reservations etc.

P..Chidambaram, the lone man is crying afoul of any more populist agendas as he wages a lone battle along with Raguram Rajan to battle CAD and inflation.
His party baboos, do not take him into consultation and unilaterally declare subsidy burden. State of affairs in India,.

 

[kbd-raaf]

P..Chidambaram, the lone man is crying afoul of any more populist agendas as he wages a lone battle along with Raguram Rajan to battle CAD and inflation.
His party baboos, do not take him into consultation and unilaterally declare subsidy burden. State of affairs in India,.

Such things likely still strike a chord with many in India. I doubt anybody would vote for them because they start touting a development idea. But they can consolidate their votebase by using gimmicks like that.

In other news, the bitcoin bank I was about to float has sunk. Mining hardware has been delayed.

 

[ExtraOdinary]

Bad news.

Do you suggest we stop importing oil? This is good news in fact, a growing economy needs fuel!

 

[Rajaraja Chola]

Such things likely still strike a chord with many in India. I doubt anybody would vote for them because they start touting a development idea. But they can consolidate their votebase by using gimmicks like that.

In other news, the bitcoin bank I was about to float has sunk. Mining hardware has been delayed.

Bitcoin bank "you" were about to float? You are a banker?