Prime Minister Narendra Modi has made a move that would make good economic sense for Asia’s third largest economy to eventually get rid of Subsidy Raj. This step will possess the virtues of good economics and no one can politically blame the government.
India has a population of 120 crore, which has 16.35 LPG Consumers. The government made an LPG Payout of Rs.40,551 crore in 2014-15.
In the case of LPG subsidy, the government began with the ‘GiveItUp’ subsidy campaign in March earlier this year. Under this, some 57.50 lakh LPG consumers opted out of LPG subsidy voluntarily.
Finally, there is something coming from the Narendra Modi led BJP – government, with which, both the economists sitting in air-conditioned rooms and the poor on the street would cheer in the same voice.