“Gareebi hatao” has been an ever popular rhetoric of politicians. Do we really need to remove poverty? Of course we must…! Over the years, the phrase is so sacrosanct that it would be preposterous for someone to challenge its advocacy. And thus, without questioning, our politicians continue to milk its promise. Society believes them and benevolent individuals try to reduce their sufferings. The precise economic definitions of poverty are debated and it’s not hard to see why.
India imports about three fourths of its requirement of crude. In financial year 2012, this cost us Rs 726,386 crores[i]. After taking away the exported oil products, the net outflow India incurred was Rs. 441,743 crores. The subsidy provision for the year 2014 is budgeted at Rs. 80,000 crores, but experts estimate it at Rs. 1 lac crores, in best case scenario. This means the money central government gives to oil companies and others in the fuel chain, to compensate the loss
Some time back corporate US stumbled upon a better way of making even more money – shift manufacturing bases to the emerging countries and reduce manufacturing costs by unimaginable amounts. Indeed this seemed to work well for everyone. The firm benefitted with low manufacturing costs and consumers benefitted by low sales prices. Retailers and manufacturers could both make more profits because of the ridiculously low costs. Incremental improvements in operational efficiencies