Congress Should Avoid Mistakes to Survive

The surprising election results of Haryana and Maharashtra Assemblies have thrown Indian politics into confusion. The results are a great victory for BJP and terrible defeat for Congress. Both Maharashtra and Haryana have been ruled by Congress for a long period and are very important States economically. The BJP had never ruled either Haryana or Maharashtra. For the first time, BJP is going to rule Haryana and Maharashtra. The BJP will become a major force and the Congress will have to find new strategies to survive.

Indian Political Dynasties Can Adopt Indonesian Dynasty Model

There is one solution for Indian political dynasties. Their survival is being called into question. The recent elections have shown that if there is an opportunity, then people will vote against dynasts, unless there are pressing reasons. According to the law of Genetics, eventually the genes of any family will deteriorate and there will be sharp deterioration in the fortunes of all. This affects politicians too. The original founder of a dynasty is usually a very sharp person and has the grit and hardiness to succeed. Then he wants his progeny to succeed him and take-over his political empire.   This is where the trouble starts. Many a time, the heirs are very mediocre and sustain office only by accident or due to the general lethargy in the Indian system.

Diesel Oil de-Regulation

On October 18,  2014, Govt. Of India announced that it was totally de-regulating diesel prices. Before this announcement, government followed a policy of increasing diesel oil prices by 50 Paise per litre every month. Whatever the international price of crude oil, the idea of having a monthly increase of  50 paise  per litre would be to reduce the gap between the subsidised diesel prices and the international  market prices.

Impact of Falling Diesel and Petrol Prices in India

For the last four months, India has enjoyed the surprising benefit of falling crude oil prices. When crude oil prices fall, there is an automatic decline in prices of petrol, diesel, kerosene, LPG gas and a host of hydro-carbon prices. Four months ago, the price of Crude oil was nearly US$ 115 dollars per barrel. Now the price is around US $ 88 per barrel. This steep fall has had some benefits for India.

Reserve Bank of India and the latest monetary policy

All those directly interested in the   Indian economy were eagerly waiting to see what the Governor of the Reserve bank of India Dr. Raghuram Rajan would do on Sept.  30, 2014.  It was the day when the RBI would announce its latest monetary policy.  The RBI would determine the lending policies of banks and also the quantum of money available for business activity. Ever since Dr. Raghuram Rajan became the Governor of the RBI, he maintained that he would be a tough anti-inflation fighter and that he would not swerve from this objective.

BJP had no Option but to break Shiv Sena Alliance

The elections to Haryana and Maharashtra are on October 15, 2014. The most un-expected things have happened. In Maharashtra, the 25 year old iron alliance with the Shiv Sena was broken.  This sudden situation has surprised everyone.  You see, the BJP did not act   as it was expected. The BJP refused to be insulted and refused to succumb to threats. The problem with threats is sometimes threats do not work.  

Ideally, BJP which is in power in Delhi needed to have Shiv Sena in Maharashtra to win state elections.  If the Congress party forms a government in these two states, it will be a major setback to BJP.