The decisions to raise the diesel and LPG cylinder prices and the approval for allowing FDI in retail and aviation are both timely and show a determination to take harsh decisions when needed.Finally after what seemed to be a period of prolonged slumber the government seems to have woken up.
As expected there is a hue and cry being raised by the opposition parties and many Chief Ministers. All of them want rhe decisions to be reversed. Some are even threatening to consider withdrawing support to the government. Next week will see some interesting developments.
A confident and reenergised PM will possiblyeffect a cabinet change. The share market is expected to flare up unless RBI does something unusual. There is a distinct possibility that there will be increased flow of dollars as was seen this week end. The rupee can be expected to furthur gain against the dollar. It can help to bring the imported crude at lower rupee cost giving some more relief to oil companies. The industrialists will welcome the end of the policy paralysis syndrome.
But on the streets of India there will be crowds led by opposition parties shouting hoarse for removal of economy friendly measures. Even the famous Roll Back Sinha of BJP will be speaking against the announced economic
Why is there so much opposition whenever reform measures are announced, which will benefit the economy and the citizens, in both the short and long run. It is to be expected that whenever change is introduced it is met with resistance. This is a universal phenomena. It is the job of the change agent to communicate effectively the benefits of the change to those going to be affected by it. Only when the affected become knowledgable does chane get accepted.
Therefore the PM should act as a change agent and come out of hissilent mode and communicate with the preople especially those in the trade and convince them of the benefits of FDI in retail. The PM owes this to the citizens. He has to be a vocal champion of his initiatives.
The question is will he act as a commiunicative or a silent change agent. The opposition and also the acceptance will depend on how he choses to communicate. He has acted ,now he has to speak the dialouges effectively, forcefully and convincingly. It is the age of communication.India is watching.