31
May
12

Soniaji presents UPA-2 achievements and Rupee hitting fresh new lows..

Rupee at a fresh new lifetime low kind of sums up congress led UPA 2 rule at center. PM and FM keep on harping about challenging global macroeconomic environment which is resulting sharp Rupee decline. Every time we hear the same reason – Eurozone crisis is impacting our growth. Yes, to a large extent Eurozone troubles are impacting all EM currencies. But INR is outperforming every other currency on downside on account of twin deficits. Without any major shock and FII outflows, Rupee is above 56.

It is difficult to believe that a man of  such stature is doing nothing but just holding onto his PM post. May be the center of power is somewhere else and he has no choice but to be a rubber stamp. Few days ago, PM commented that “Policy paralysis perception can be corrected by reality”. I wonder if he is still in real world or in the paralyzed world of congress. Sometime back,  Soniaji also commented that it is fashionable to criticize government. It just shows the state of mind this government. Intellectuals at the center are still not willing to accept that much of India’s misery is a result of our own doings rather than the outside world. Suddenly after parliament session got over, the government increased petrol prices sharply by Rs. 7.5/Lt. Everybody including myself thought that the center has become hyperactive and we might see slew of decisions in coming days, especially diesel, LPG and kerosene price hike.  But everything is back to normal in the paralyzed world. Petrol is to a large extent deregulated and its subsidy share is like a drop in the ocean of overall subsidy bill. Petrol hike should have been managed better in terms of its quantum and rather diesel, LPG and kerosene prices should have been hiked moderately. But now the government has shot itself in the foot and is finding difficult to increase prices.

Rajeev Malik wrote an article in BS: http://www.business-standard.com/india/news/rajeev-malik-seeking-divine-intervention/473775/. It kind of sums up the frustration with this government.

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