Monday, June 23, 2014

Narendra Modi's Railway Fare Hike

Recently Narendra Modi government increased Railway passenger and freight fare by whopping 14.2% and 6% respectively. Modi government and his fans are giving reasons that it is necessary to raise prices for providing better services and safety in Indian Railways! Is it true? Is it necessary to raise price to provide better services? Or is there a better alternative available? Also, recently the inflation numbers came out and the WPI jumped to 6.01% in the month of May. Immediately Modi and his finance minister Jaitley started blaming 'speculative hoarders' for this price rise. Again, is this true? Are 'speculative hoarders' responsible for price rise? I tackle these two questions in this week's economic report below.

5 comments:

  1. Very logical analysis..liked it..
    I was discussing about why poor farmers in india are not able to progress, and wonder if you would be able to do a blog dedicated to issues around this e.g. High cost of labour, fertiliser and seed prises, low returns from crops, hoarding by middlemen, gov rstrictions etc..thanks

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    Replies
    1. Thanks Sandeep for the comment. In my future blogs I will try to address issues related to poor Indian farmers for sure.

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    2. Was waiting eagerly for your analysis of the budget. May I know when if at all will you be publishing the same?

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    3. I will publish it soon. Was busy organizing 'Freedom Caravan' event in my department as well as teaching.

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