Quick reforms made

The Indian government is in a hurry to make reforms to make the economy healthier. Reforms in bringing in retail chains and raising of price of diesel and cooking gas have been made very quickly to remove our attention from the the realities of corruptions (in allocations regarding coal blocks). Diesel price was raised by 5 Rupees per litre. And this was hated by consumers all over India. If the diesel price was increased, tractors and motors for water pumping (which run by diesel) would make farming costlier. This would increase the price of vegetable, fruits, grains and pulses. More over trucks which bring the produce to the market will charge a higher price; this will further increase the price of all consumer items). In major metropolitan cities there were protests, and marches all wanted to demonstrate against the price rise of diesel. Politicians who had brought this show that the international price is high and we have to raise the price as there cannot be any more subsidies. For the ordinary people, the macro and micro economic policies do not make any direct sense; the fact that they have to pay high prices for food stuffs is something they will have to tolerate. In India cooking gas which is sold in cylinders is subsidised almost 50% (Rs 750/per cylinder gas is given to consumers at Rs 400/cylinder). A single  family is allowed to  use only  six cylinders per year;  and for additional cylinders there will not be a subsidy.They have to pay the cost price.This economic measure can  be  understood by all.

Along with raising price of fuels, the ruling government has brought FDI (Foreign Direct Investment) in multi brand retail. Small time businessmen or middlemen buy from producers and sell to consumers with a small profit; and thereby make a living. But with the coming of chain stores, these small businesses and small shops will come to an abrupt end.Already we have seen  how the chain stores aim at huge profits without considering health of the consumers or welfare of its own workers. Farmers may benefit at the start but later they too will be strangulated by chain stores. In a second, the foreign firms will buy the farmer's land and leave him buried in debts.This has happened elsewhere and we may be repeating this in India. All those people who would have lost their livelihoods—where will they go? What will they do?

Rise of diesel price has met with big oppositions.One part of the coalition government has threatened to resign if there was not a rolled back within 72 hours. Even if the diesel price is rolled back, what will be the state of the small time middlemen? The solution is not in sight.