Saturday, September 22, 2012

Steps by Prime Minister

FDI in retail, I feel has technical flaws. It is a central subject. But states have been allowed to decide for itself whether to allow FDI in their states or not. MP and UP have outrightly rejected FDI in retail.
Then there is an interesting stand of RBI. They reduced the CRR but did nothing to repo rate. This is a diplomatic step by RBI if we take a look at it with respect to diesel prices. What they seem to be saying is we have to manage with the money available in the market and we are not going to do anything about decreasing money available to banks. This has raised inflation and the Congress committee has reduced central taxes in diesel.
If there is seriousness in implementing FDI, policy steps need to be taken with respect to other aspects of FDI. The import duty, the insurance of goods, consumer redressal and others. Let us wait and watch how things are planned by advisors. 

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