Subsidies make you competitive globally...

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...