Saturday, February 07, 2009

Licensing policies continue to stifle India

All across India, adulteration of fuel oil by mixing petrol with much cheaper and subsidised kerosene is a common practice, thanks to the major difference between the price of the two. As a result, the highly subsidised kerosene, meant for the poor, ends up being sold illegally in the open market; while the oil retailing firms continue to lose billions of dollars every year due to the subsidy, which continues to be a tool for vote-bank politics even when it’s no more a secret as to how it is misused and how much pollution it causes.

Forty-five years of license raj had done much harm and stifled this nation. Though things have changed for better in the last seventeen years of an 'economically independent' India since the advent of liberalisation, the remaining reminiscence of licensing continue to stifle the path to prosperity of the aspiring common man and put him at harm's way. After all, there’s no other economy where the price of junk scrap would be in lakhs and the prohibitive pricing of the quality liquor would drive the poor man to drink things equal to poison. Time to allow the invisible hand of the market economy do the talking.....Continue