(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

A Perspective on Subsidies in India

            India in 2015-16 was expected to spend Rs. In a country trying to rein in fiscal deficit and with a problem with revenue collection with innumerable free riders – with around 2% of the population paying taxes. This surely begs the question and forces one to ask if there is some merit in the argument for subsidies. The oil prices in the world have been in freefall. With ISIS forces seizing control of certain Iraqi oilfields and the introduction of shale gas by the US, crude oil prices have fallen to as low as $30 per barrel, and some expect it to fall to even $20 levels. The resulting fall has eased pressure on the Indian government to provide subsidy, and they have been slashed as a result. The question now is whether further slashes are possible.
             A subsidy is an economic measure to make a public good affordable or to encourage the use of a public good. It is the inverse of tax in this regard. The government either sets a price ceiling – as in the case of fuels (petrol and diesel) – or pays a part of the price on behalf of the consumer. In the case of artificial price ceilings, the problem arises because the corporations involved (PSUs – IOCL, BP, HP) undergo very high operational costs and losses in general, and the people unable to afford the product are still unable to use it. In this sense, it is very difficult to justify subsidies – since they fail at their primary goal while exerting great pressure on the economy.
             Another problem that can be seen with subsidies in general is the fact that they negatively affect markets. Considering the example of diesel, a heavily subsidized fuel in the country, it can be seen that the subsidy is not entirely justified in the present context. Diesel was encouraged as Trucks and heavy utility vehicles run on it. As a way of promoting transportation, they were subsidized. However, diesel engines are a lot more polluting than petrol engines, and the recent years have seen the rise of smaller vehicles which run on diesel – a phenomenon attributable to subsidies.


Essays Related to A Perspective on Subsidies in India

1. Agriculture Negotiations and the World Trade Organization

In this paper we will present the above-mentioned issues from the perspective of both developed and developing countries and give some insight into how the negotiations are likely to turn out in the near future. ... This is the first time that member governments have truly committed to the reduction of export subsidies and trade-distorting domestic support. ... Export subsidies and competition are among the important issues being negotiated by the WTO member governments. ... Others are more content to have moderate cuts now and eliminate subsidies over a period of time say five to ten year...

  • Word Count: 2800
  • Approx Pages: 11
  • Has Bibliography
  • Grade Level: Undergraduate

2. Secondary Airports Effective in India

Introduction Over the past decade, India has seen a rapid growth and development in the aviation sector. ... The positive indicators to India's aviation developments are many. ... According to a recent CAPA report, it has been found that India is under prepared to handle the growth challenges ahead and will need a massive investment of up to USD 40bn in airport development by 2025. ... In primary airports in India, low cost carriers often end up paying a large amount of their operational costs in airport charges. ... The passenger perspective and the airliner perspective play a major role...

  • Word Count: 4397
  • Approx Pages: 18
  • Has Bibliography
  • Grade Level: High School

3. The Doha Development Round

Just as important, the EU letter also shows flexibility on the issue of eliminating export subsidies for agricultural products which has been the sticking point in the agricultural negotiations. For the first time, the EU hinted that it would be prepared to agree to a phase-out of export subsidies. To be sure, the offer is highly conditional on both a favorable outcome on market access and domestic subsidies from an EU perspective, and on the parallel phasing out of the export supports of other countries, including export credits, food aid and state trading enterprises. ... India's atti...

  • Word Count: 1440
  • Approx Pages: 6
  • Grade Level: Undergraduate

4. The Resurgence Of Mid-Latitude Attitudes

As a strategy Neoliberalism involves privatization, slashed food and housing subsidies, non-investment in education, multiplying prisons, a celebration of the death penalty, union busting, land enclosure, lower wages, higher profits, monetary terrorism, the substitution of export-oriented for import substituting development, free capital mobility, a crackdown on immigrants, accentuated racism, an anti-feminist counteroffensive, intensified low-intensity war against peasants and the accelerated commodification of Nature, all of this under the banners of freedom, efficiency and profit. ... Over ...

  • Word Count: 3530
  • Approx Pages: 14
  • Has Bibliography
  • Grade Level: Undergraduate

5. Pakistan and the Application of Mortgage Law

Pakistan is even far behind India in this regard. ... In South Asia, India's ratio stands at about 9% but Pakistan's ratio of less than 1% is astoundingly far behind comparative economies. ... From the perspective of world history, urbanization is a modern trend and the second half of the 20th Century was distinguished by the phenomenon great speed. ...

  • Word Count: 6021
  • Approx Pages: 24
  • Grade Level: High School

6. The IMF and the World Bank

Looking at developing countries from an economic perspective, it can be argued that economic development has been stagnant in most countries. ... Rather than helping nations build wealth and prosperity, the IMF and the World Bank provide subsidies to corrupt, and sometimes-brutal ruling elites in countries like Mexico, Russia, Argentina, and Brazil. In many cases, both institutions are involved in making loans to authoritarian nations, such as China, Malaysia, Indonesia, and India; essentially countries that aggressively compete with American workers and industry, and are often at odds with th...

  • Word Count: 3351
  • Approx Pages: 13
  • Has Bibliography
  • Grade Level: Undergraduate

7. Poverty and Millennium Development

After taking a deep view, we will discuss the role of government and politics in relation to goal1 at this point we will be taking a more extensive perspective. ... Similar Malawi in 2005 has gained almost 43% of fool deficits and accomplished 53% of excess food in 2000, through the national program of input subsidy. ...

  • Word Count: 3667
  • Approx Pages: 15
  • Has Bibliography
  • Grade Level: Undergraduate

Got a writing question? Ask our professional writer!
Submit My Question