By the time I finish writing this there will be scores of economists debating on various TV channels about the effect of price hikes we have seen recently. This is the latest buzz in town. Iam not siding up with our prime minister about the justification in doing so but for people who say that this has come as a surprise I would like to say … think again…
Let me put it this way ….Although we acknowledged that the price of an oil barrel is on the increase in the United States and deep down we knew that the wave can hit us any time we ignored it till it actually did. All the news channels …including the ones where news is more like an glorified advertisement have been reminding us that oil prices are on the increase elsewhere in the world. If we thought that the government which as effective as the sun in the arctic will come running for our rescue then maybe we were wrong.
(Protest against price hike)
Sales tax cuts have actually helped in curbing the hike to an extent but this is not a long term solution and not all states have brought the price down to a common platform although the increase was same everywhere . What will happen post elections is something we need to think about right now..and not start the debate when prices slowly start creeping up again …..
So now the latest news which is going round is that oil prices are still on increase as they have crossed $150 a barrel do not be surprised that we will be following suit ……maybe we will not see it in oil this time due to the protests …not only India but in United Kingdom as well where lorry drivers have been protesting as well ….but there is a chance prices of commodities may be raised to even out the losses.
India might as well be an IT giant but it is also an agricultural country and a country where more than 1/3rd of the population is below poverty level and the effect of these price hikes will definitely be blatantly visible on the community. I do not have an answer to the question whether the price hike by our government was justified or not but in future if you hear that there is an increase in price of oil or commodities or the decrease in dollar value then do not be surprised if we see an increase in prices or a cut in IT jobs…
Padmaja V Santhanam