increase in subsidies will be benificial for india or not?

[khan_talha]

hi friendz,
please sumit ur views wat according to u would be adv or disadv of subsidies

 

[deepakraam]

Well it depends on the situation.We cannot classify that subsidies are bad all times.It depends on the economic climate and the industry for which and why it has been subsidied.Take for e.g Govt has been providing petrol,diesel & LPG for all the Indians at subsidised price.Though it is creating a dent in the balance sheet of the OMC(Oil Marketing Companies),it is a huge relief for a common man. But when you think about the farming subsidy, every year millions had been classified as NPAs in the banks balance sheet and subsequently written off but the agrarian scene hasn't improved at all.There are farmer suicide happening every year,productivity hasn't increased at a great level.So instead of subsiding it is better to plough that money for improving the infrastructure.So, increase in subsidies will benefit or not depends on sector and economic climate at that point of time.

-Deepak.

 

[khan_talha]

Well it depends on the situation.We cannot classify that subsidies are bad all times.It depends on the economic climate and the industry for which and why it has been subsidied.Take for e.g Govt has been providing petrol,diesel & LPG for all the Indians at subsidised price.Though it is creating a dent in the balance sheet of the OMC(Oil Marketing Companies),it is a huge relief for a common man. But when you think about the farming subsidy, every year millions had been classified as NPAs in the banks balance sheet and subsequently written off but the agrarian scene hasn't improved at all.There are farmer suicide happening every year,productivity hasn't increased at a great level.So instead of subsiding it is better to plough that money for improving the infrastructure.So, increase in subsidies will benefit or not depends on sector and economic climate at that point of time.

-Deepak.

yes i agree with u but dont u think that subsidies are acting as SLOW POISON for a country like India to some extend because increase in subsidies are making people more dependent on goverment even political leaders are not putting their hands in these matters because they will loose their votes people are becoming more and more of demanding nature they never think that even if govt is providing subsidies they are taking out more money through other channels.
Talha-