Kaushik Basu, chief economic advisor to the finance ministry has said that Diesel should go on float like petrol and the idea to fix the tax component for petrol price could be considered and discussed. He said that “Both Diesel and Petrol should go on float, as float does not necessarily mean to increase the price but to increase in a correlated way along with the international crude price”.
The chief economic advisor to the finance ministry also said that is pitching for allowing FDI in retail sector that may help the farmers to a great extent and would also provide a major thrust to Indian exports as big retailers would eventually source more products from India. The entry of modern retailers in China and Indonesia has dampened exports from India. He opined that modern supply chain management, procurement from farmers and local industry and eventually export of goods by large foreign retailers will benefit all.
Talking about inflation he said that current WPI inflation would remain around 7.5 % and is expected to drop to lower than 7 per cent in mid-October. A combination of monetary and fiscal policy can only control the price.
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