3 min read.Updated: 04 Oct 2018, 11:49 PM ISTLivemint
As the country heads into a long spell of elections, the government will be under constant pressure to reduce taxes on petroleum products
This is a difficult time to be a policymaker in India. The complexities of economic management continue to deepen. On Thursday, for instance, the rupee fell to a fresh low, stock prices were once again in a deep correction mode and bond yields went up. Then came the kicker: the Union government announced excise duty reduction of ₹ 1.5 per litre on petrol and diesel and asked state governments to reduce value-added tax on them. Oil marketing companies too will absorb a hit of ₹ 1 per litre. This is not going to make things any easier—quite the reverse.