INDIA
is a developing economy and much population is still struggling with poverty...
we need subsidies to feed them in the face of insufficient incomes and many
unemployed... I think INDIA
should not shy from reducing subsidies below 10% in phases as the magnitude of
poverty goes down... INDIA
is reducing subsidy on diesel and is working on targeted subsidies (to the
poor)... Therefore, it should not be perceived as protectionist (mainly)...
When it comes to domestic population and jobs even the US sometimes
behave like an utter protectionist, immigration-rules and skills specific
Visas... In the line welfare of domestic population comes first... Today
policies effect globally... The roll-back of the QE programme is creating
problems in the emerging markets... so the US will not do it... it can not
promise? Subsidies on agricultural products make them competitive abroad, but
why oppose a country when it wants to sell low... It is their problem, right...
Subsidies bloat fiscal deficit...
Oh... O... It is not very much different from
depreciation... Subsidies can make you competitive globally... prices go
down...
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