Sir,
The first step to solve a problem is the recognition that the problem exists. Unless the problem is acknowledged it is impossible to even look for a solution. This is what dogs Union Finance Minister Nirmala Sitharaman’s approach towards the economic crisis that is threatening to take a stranglehold on the country.
In her much-fancied series of announcements, seeking to revive demand in the economy, her first focus seems to be to present a rosy side. She has even cited statistics to claim that things are not that bad. But the hard fact is that the improvements that she claims hardly touch the surface of the problem.
Despite the slew of measures announced so far, the ground situation remains as murky as ever. It is widely accepted that the stimulus packages, if those measures can be described so, have failed to instill confidence as demand continues to struggle. Her measures so far are no more than sophistry.
The finance minister’s cup of woes is further overflowing with negative news on the petroleum front. The attack on Saudi Arabia’s Aramco oil refinery has the potential to unsettle the apple carts of not only the oil kingdom but oil consumers across the world, particularly in India. A fuel price increase is the last thing that the Indian economy can deal with at the current juncture. Oil analysts say that the damage to the important refinery is much more serious than originally thought and it could be months before normalcy is restored there. The longer the processing facility remains disrupted, the larger the potential impact on actual crude flows will be.
K Raveendran
on e-mail
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