Big bangs

17 September 2012 By Jeff Glekin

India’s prime minister has unleashed three bold economic reforms. Assuming his nerve holds in the face of strong protests, he may even get a taste for such announcements. India’s financial sector, mining industry and labour market would all benefit from a similar approach.

This content is for Subscribers only

Context News

India’s government on Sept. 14 announced that it was opening up the retail sector to foreign supermarket chains and removing the bar on foreign investment in both airlines and broadcasters. It also approved the sale of stakes in four state-run industries.
The move came a day after the government raised the price of heavily subsidised diesel, increasing prices by five rupees per litre. That translates as a 14 percent rise, including taxes.
The committee also decided to limit the number of subsidised cooking gas cylinders per household to six per year, a move seen as hitting the poor hard. Any LPG cylinders bought over this ceiling will be at market rates, which could almost double the price.

Email a friend

Please complete the form below.

Required fields *