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Economic virtue of India waffles

There is a virtual difference between the socialist and capitalist chronicle of economics. While the first one has its center of attention, according to principles, to the society as a whole, the second one is driven to the saga of profit along with the subordinate features of social responsibility. Now, as far as India is concerned, the nation was under the grip of the socialist approach for the first four decades at a stretch when the economy was reeling under the pressure of several compulsions and without any significant development. Now the switch-over to the notion of market economy under the auspices of the present Prime Minister in the early nineties witnessed significant development in the subsequent period and the emergence of a resurgent India.

However, the same story is witnessed again in the last four years when under the Manmohan Singh government the Indian economy has risen rapidly by 9 per cent a year on average and per capita income is almost double in comparison to the last decade. But the recent fuel prices in the wake of the exponential rise in the international spectrum has shattered all good will gathered by the reigning government and has earned stringent criticism from all stratum of the Indian society. What is more, in spite of the forthcoming elections, the way the Central Government has knuckled under the economic constraints and diminished its subsidies for fuel has amazed many.

The decision followed large scale protests and all from the vituperative Left to the right-wing Bharatiya Janata Party, or BJP have joined the bandwagon. The main opposition BJP has even termed this fuel price increase an act of "economic terrorism." Speaking on this the opposition leader, Lal Krishna Advani commented, "Here is a government that has mismanaged the economy so badly that not only the poor but also the middle classes are seeing their purchasing power eroded due to spiraling prices." But perhaps he has forgotten that under the present UPA-government the development of the rate of income has exceeded the NDA tenure.

It is true that this rise has badly affected people, especially of the poor and middle class, and has also raised several uncomfortable questions. Indeed various measures of the government for benefiting people belonging to the lowest strata of the society by utilizing the tax revenues is the result of a decent approach. But how far has been the real development remains a question. To deal with the emerging and render respite to the sufferers several state governments have already decided to lessen the state fuel taxes.

To the pundits, this wretched situation could have been averted had the government concentrated on several aspects like the steady reformation of the colossal discounted-fuel pricing structure and the destruction of the pernicious influence of black economy. Nevertheless, to their consideration the government has already missed the bus and what remains is nothing but the reverberation of the past misdeeds.

It seems that the mounting prices compensate the economic gains hitherto.

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