The UPA government has gone into overdrive at the fag-end of its second term, passing long-pending, but ambitious reforms, like the Food and Land Bills. Now, the market is watching whether the government can find enough strength and resolve to hike price of diesel, a demand put strongly forth by the oil ministry.
According to Shekhar Gupta, editor-in-chief, The Indian Express, the oil minister sounds very confused at the moment. "It will be very shortsighted if the hike is now confined to a limited hike on diesel. If LPG and kerosene are left out, LPG in particular, I think it will be obscene that middleclass in India continue to get subsidized LPG," he told CNBC-TV18.
He believes the government is right now worried with the start blue-collar job losses and that "there is a real sense of crisis".