Recently Narendra Modi government increased Railway passenger and freight fare by whopping 14.2% and 6% respectively. Modi government and his fans are giving reasons that it is necessary to raise prices for providing better services and safety in Indian Railways! Is it true? Is it necessary to raise price to provide better services? Or is there a better alternative available? Also, recently the inflation numbers came out and the WPI jumped to 6.01% in the month of May. Immediately Modi and his finance minister Jaitley started blaming 'speculative hoarders' for this price rise. Again, is this true? Are 'speculative hoarders' responsible for price rise? I tackle these two questions in this week's economic report below.
Monday, June 23, 2014
Sunday, June 8, 2014
In my latest economic report I discuss the slowly unfolding economic policies of Narendra Modi and his BJP government. RBI, mostly under the pressure from the Modi government, recently reduced its SLR by 50 basis point releasing 40,000 crore new credit in the market. This is nothing but inflation. I discuss this and other important matters below.