Dr. Duvvuri Subbarao: An argument against de-subsidization is that it will be inflationary. Sure, it will be inflationary in the short-term, but price pressures will even out over the medium term. Also, the inflation impact should not be overstated. To the extent lower subsidies result in a lower fiscal deficit, there would be some disinflationary impact even in the short-term. Finally, reduction in subsidies will remove price distortions, improve efficiency and provide a much better investment environment. Read More

Jyothi Shankaran

    Jyothi’s last role was as Senior Editor with the business news channel Bloomberg TV India. He also worked as News Editor at business-standard.com, the online version of the business newspaper Business Standard. Jyothi is a chemical engineer from the Regional Engineering College, Srinagar.

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