DD!!!

Well, it is nice to be back after an array of gloomy events that have marred my life in the past couple of months. It has been a grueling experience with all those lab tests, assignment and project submissions and the final exams that that pushed my jovial outlook towards life on the brink of extinction.
But now, everything has been set in order and I am here, back home, enjoying and ‘creating’ a pleasant summer.
Hmmm…talking of the political environment, ‘janta-janardan’ has given a decisive verdict not only for the next five years but with a vision for 2020. The economy is also showing signs of recovery but only time will tell whether happy times are here again or we are heading for another major crisis.
Coming to the topic, what our perception of vision makes us perceive about DD is Doordarshan, the state owned television network. In simple literary terms, it means ‘distant vision’.
However, my reference is towards another duet of Ds which will be in prominence in the coming months in the economic scenario.
Let me uncover the mystery of the Ds by presenting before you the first D, that is, DEREGULATION.
Recently, the petroleum minister announced the government’s decision to deregulate the crude oil product’s prices. This will mean that the prices of petrol, diesel and kerosene will be determined by the ‘market forces’, to a certain level. The immediate consequence will be higher price of petrol and kerosene and almost same price of diesel.
According to the government, the positive is that the oil PSUs will minimize their dependency on government subsidies and this also opens the door for private players like Reliance who had to abandon their much hyped petrol pumps due to the skyrocketing crude oil prices in the international market.
However for customers, it is not something to cheer for. Crude oil is depleting day by day and fundamentally its prices will only increase in the long run. But it is a good move because people will now think before putting up a vanity fair accompanied by a luxurious lifestyle. The basic message that I think the government is trying to convey is that if people can opt for dinners in five stars on weekends, buy expensive dressings from boutiques then why cannot they pay prices for their travel. It is also an initiative to dump the oil factor once for all as an election issue.
But what the government has to monitor is the kerosene price levels which is still the major fuel in rural India. The drive is also a reminder to the industries to look for alternate sources of energy.
After briefing about deregulation, let us turn towards the other D, DISINVESTMENT.
Disinvestment is not a new phenomenon and was unscrupulously practiced by the NDA government. In simple terms, disinvestment is the selling of stakes in PSUs to private parties. The major advantage of the process is that PSUs become more competitive due to a tougher and strict management. People tend to perform better in a disinvested PSU as its employees are no longer wound by certain strands of complacency like their jobs are permanent immaterial of their performance, no pay cuts and what not.
Talks are on that the government may hire specialists from abroad to suggest on the possible measures that are to be undertaken for the disinvestment procedure.
This is a smart move as improper and thoughtless disinvestment may lead to situations which are neither good for the company and nor for the government. There is also talk of bringing in FDI in the public insurance sector and if this happens sooner, there is no doubt that the share market will skyrocket to new highs.
There are also indications that the aviation sector may opt for disinvestment in the distant future although such claims have been refuted by the government as of now.
So, wherever we see around us, everything seems to be coming back on track and is desperately running on the way to take off. But believe it or not, all these are based on speculations and the government is only talking at the moment. It will be worthwhile to see when the actual operations begin and when the budget is placed on the floor. Moreover, with the Dollar in shambles, international investors like Jim Rogers have predicted that the world is heading towards a currency crisis in a year or two.
So, it would be interesting to watch the impact of the Ds and how it helps to sustain the India shining story but a definite word of caution would be:
DO NOT COUNT THE CHICKENS BEFORE THEY ARE HATCHED.