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Apex bank moots de-regulation of diesel prices
- In its third quarter review of Monetary Policy 2011-12, the apex bank suggested diesel price de-regulation “to contain aggregate demand and trade deficit.”
- Since the food subsidy bill “is expected to rise,” the apex bank said, “it is prudent to fully de-regulate diesel prices.”
- Further, it said the “petroleum product prices have not been revised in response to crude oil prices, contributing to fiscal slippages and suppressed inflation,”
- Planning Commission Deputy Chairman Montek Singh Ahluwalia has also said that the Centre has decided ‘in principle' for deregulating diesel prices, but from when has not been decided.
- “Our oil prices are not in line with the global prices,”
- He said energy efficiency should be a focus area in the XII Plan because there would be a spike in energy demand.
- There was a pressing need to educate the masses about this cost and its effects.
Promote knowledge economy: Ahluwalia
- Mr. Ahluwalia said Kerala had a skilled labour force and this should be used to promote a knowledge economy. “Kerala probably has the most globalised economy in the country,”
- He did not think the economic crisis in Europe would not have much of an impact on Kerala's economy.
- The gross State domestic product would continue to grow. There was no point in focussing on agriculture per se. “The focus should be on high-value agriculture,”
- By bringing in better technology and modernising the high-value agriculture, more educated people could be attracted to agriculture.
- He wanted Kerala to give priority to tourism, particularly high-value tourism.
