Economic
Highlights
New
Delhi, 15 April 2024
CourtExposes Kinks
PRICES, GRAFT ROIL ECONOMY
By Shivaji Sarkar
Innocuous
developments are unfolding amidst the growing fervour of the impending
elections. Despite concerns of the Reserve Bank of India regarding inflation,
escalating toll rates, and transportation costs, the nation finds itself amidst
a politically charged atmosphere. Nonetheless, certain court rulings are adding
intrigue to the evolving scenario.
In
addition to the impact of electoral bonds, which have added colour to the
political landscape and influenced prices, three other judgments are exerting
significant influence. These include the Supreme Court’s hearings on the Voters
Verifiable Print Audit Trail (VVPAT), commonly known as the voting slip; a
judgment regarding the denial of payment to Reliance Infra for the Delhi
Airport Metro EPL; and the severe criticism of Patanjali’s owners, who are
contemnors of court orders regarding their advertising. These developments are
intensifying the dynamics of the electoral contest.
Not less
interesting is the Enforcement Directorate’s (ED) mounting fresh money
laundering probe into Chhattisgarh liquor scam and linking Kerala CPM leaders
to bank fraud. Could there be more arrests even after Delhi Chief Minister
Arvind Kejriwal and Kavita of BRS in Telangana?
Will
prices take a backseat to politics and court rulings, or will they remain
pressing concerns alongside these factors? Voters, though reticent, are far
from oblivious. Whether attending rallies of prominent leaders or not, they are
keenly aware of every development that influences their lifestyle.
Conversations
range from questioning why individuals with questionable backgrounds align
themselves with BJP to analysing defections from BJP to Congress factions. Both
voters and party members evaluate the potential implications of each unfolding
event, particularly returning officer of Chandigarh municipal polls and Himachal
Pradesh defections.
Corruption
is not a non-issue. Arrests of select Opposition state leaders on corruption
charges by central investigative agencies such as CBI, ED, and income-tax
department are unlikely to change the general public perception that corruption
pervades all political parties. Many view the pre-election arrest of Arvind
Kejriwal as a strategic move aimed at thwarting the popular politician’s
participation in the election campaign, rather than a genuine effort to address
corruption.
It gores
them to think that possibly price surges of many medicines and commodities or
galloping rise in tolls have the electoral bond connections. Former Vice
President Venkaiah Naidu’srecent remark on corruption involving all parties has
given it a new dimension for the voters to rethink the extent of the impact of
the malady. The rising cost of education is troubling all, be it in cities or
villages.
Amidst
the dropping of corruption charges against former Union Civil Aviation Minister
Praful Patel, allegedly implicated in a Rs. 25,000-crore aircraft purchase
scandal, questions arise as to why Delhi Chief Minister faces arrest for his
alleged involvement in a Rs. 100 crore state liquor policy issue. People ponder
whether the Air India sell-off was conducted transparently or mired in
controversy. The action against Kejriwal has spurred Opposition unity, evident
from the overflowing rally at Delhi’s Ramlila Ground.
The
recent Supreme Court decision concerning Reliance Infra’s Delhi Airport Metro's
EPL has prompted questions about corporate exploitation of public sector Delhi
Metro. The Court overturned its own 2021 order directing Delhi Metro to pay
Reliance Infra Rs. 2782 crore, which had ballooned to Rs. 7686 crore with
accrued interest.
Chief
Justice DY Chandrachud, along with Justices R Gavai and Surya Kant, justified
this drastic action, citing a ‘miscarriage of justice’ resulting in an ‘undeserved
windfall’ for Reliance Infra. This ruling, following closely after the
electoral bond controversy, has heightened voter scepticism. Had Delhi Metro
been forced to pay, it could have burdened commuters with significantly higher
fares.
Likewise,
the court's rejection of Patanjali’s apology in a contempt case, stemming from
misleading advertisements contravening its order, serves as a stark example of
how the rule of law can rectify corrupt practices, unveil false brand images,
and maintain price stability. The court’s warning to be prepared for
consequences, along with its criticism of the Uttarakhand government,
underscores the power of legal intervention. It can impact Uttarakhand polls.
Erratic
power bills and arbitrary demands in Uttar Pradesh and many states are also
potential issues.Each of these cases, people realise, are instances of political
linkages affecting price rise and profiteering.
The
glaring lapses on the part of the executive and administration add to the woes
of the people and breakdown of the law-and-order machinery.The judiciary is
uncovering corrupt practices that impact economic and administrative systems,
consequently contributing to the rising cost of living.
Media
HouseDainikBhaskar has done a study on prices in Rajasthan. It finds
that compared to 2019, prices of petrol, diesel and cooking gas increased by 42
percent; food items cost 34 percent more; medicine prices for diabetes and
heart diseases rose by 54 percent and people’s dining outside has beenreduced
by 40 percent. Pulses have become costlier by 20 percent, vegetables by 233
percent; taxi fares by 67 percent, edible oil 100 percent, FMCG rose by 60
percent. Salaries during the period for different classes have risen by 11
percent to 26 percent.
RBI
Governor Shaktikanta Das has expressed concerns about the imminent return of
inflation in his inaugural monetary policy commentary. The Monetary Policy
Committee’s statement highlights food prices as a major worry, despite a record
kharif harvest, citing tight demand-supply conditions in pulses and vegetables
that warrant close monitoring, compounded by climate shocks.
The RBI
projects growth to hover around 7 percent, potentially dipping to 6.5 percent
next year, aligning closely with the IMF-World Bank forecast of 6.5 percent
growth for India. A final picture is to emerge following the release of GDP
data for 2023-24 in May. The declining rupee, decreasing foreign direct
investment, and imbalance in trade are further indications of prevailing
uncertainties.
Price
concerns persist, with numerous unnecessary infra, roadairport and metro projects
shocking even political workers. However, this doesn't diminish the
significance of religious fervour surrounding the Ram temple and Modi’s
assurances, which remain potent issues in certain regions, albeit overshadowed
by economic factors and caste considerations. Amethi and Raebareli, however,
remain in focus, more than Varanasi.
The Opposition,
INDIA parties, are amplifying core issues, drawing attention to the populace’s
unease with unstable living conditions. While this may have tempered their beliefs,
faith remains resilient. Local dynamics, candidate profiles, specific issues,
and party cohesion (or lack thereof) will likely shape outcomes in many
constituencies more than any single central figure. The nation stands at a
critical juncture.----INFA
(Copyright, India News & Feature Alliance)
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