Industrial growth is back on track and this news does not really cheer me up, because now there are full chances that the aam aadmi (Mango People) is surely going to be gifted a tough budget this year and the UPA government would be in a mood to withdraw the Economic Stimulus and RBI already signalling the raise in Interest rates in store for the coming months as the Food Inflation is galloping fast and there is no sight of prices cooling down for food commodities.
January week ended Food Inflation is pegged at 17.56% which is almost double of what we had in 2009, Mr Sharad Pawar would be quick enough to put the blame on the poor monsoon and other factors which pushed the prices up for food commodities, however there is no action taken to tame the prices down, now even the petroluem ministry is itching to hike fuel prices, i really cannot understand if the suggestion to free the petrol prices and LPG and Kerosene has being made long back, no finance minister has had the courage to do this and face the ire of the people and Petroleum companies continue to run under losses, i hope they do not end up with a fate like that of Air India.
In India we have never seen interest rates falling to as low as 1% like in the USA and even other global economies and their central banks had lowered interest rates, back here in India we still dropped the interest rates close to 6%-7% and people actually never got the benefits of a recessionary period, well recession does not ensure low prices, because the demand and supply factor also plays a key role in determining prices and the rate at which funds are made available, i can only imagine Indians to keep running from pillar to post to find ways to combat inflation, if not in general, right now we are battling the food inflation.
With a petrol price hike now, it would trigger a chain of price rise which would further propel inflationary trend in the economy, gradually reducing disposable income from the hands of people and then banks would be raring to hike the interest rates again further lightning your wallet and making things more difficult for everyone, UPA government has already made a foolish decision of postponing auction of 3G License and they have a fiscal deficit which is widening by the day and of enough worry for our finance minister Pranab Mukherjee, Auto industry, Consumer goods industry has shown good revival in growth which means people are back to shopping and are buying new cars, bikes and electronic goods and surely government does not want that trend to continue for long.
All i can imagine is that this time our finance minister is not going to do the balancing act and walk the tight rope, instead he would prefer watching us doing this act and with a smile would say "Aal isz Well".