The Prime Minister added that the markets must be allowed to find their own level, except for those commodities which are semi public goods
Prime Minister Manmohan Singh indicated on Friday that there would be no return to price subsidies despite threats by the Trinamool Congress to withdraw support to his government over the latest decision by oil companies to increase petrol prices.
At a press conference held at the close of the two-day G 20 Summit here, he said: “We cannot live beyond our means, and money does not grow on trees.” The reduction of subsidies was an important part of fiscal discipline, and India should “allow markets to find their own level.”
Dr. Singh virtually justified the increase in petrol prices, saying there should be further movement towards deregulation of fuel prices.
As for the Cannes event, contrary to custom, the Prime Minister did not have a meeting with the G20 conference host, Nicolas Sarkozy of France.
Meetings were scheduled and cancelled at least twice, and the cold-shouldering of
Dr. Singh appeared glaring, compared with the treatment reserved for China's Hu Jintao, who dined privately with the French President on the eve of the Summit.