With economic concerns increasing, time is running out for the UPA claimed the government's Chief Economic Advisor Kaushik Basu. Speaking to Rajdeep Sardesai, Basu said that two reforms are the need of the hour- FDI in retail and partial deregulation of diesel prices.
Pitching for decontrol of diesel prices, Basu suggested the government can start the process through a "gentle" rise in rates before leaving it open to market forces. "Most people make the mistake of thinking that decontrol means one huge hike in price and that is it. Decontrol can mean a gentle price rise and then onwards it floats up and down," he said. He, however, addedd, "full decontrol will not happen. At this point of time, it is going to cause such a jolt that we are not in position to take. But a partial decontrol of diesel I think is likely...".
Basu said the Prime Minister appointed Inter-Ministerial Group (IMG) on inflation headed by him has a full report on diesel price decontrol. "It is an advisory plan that is going to be given up and has to be discussed, he said. Watch more on this story.