The Debate About Single Digit Pricing For DFI Is Really About Subsidizing Industralisation
This is a very interesting debate. It is a fragment of the general debate about the efficacy of using subsidies to promote industrial and economic development.
Govt must decide whether it wants industrial development or not. If the answer is NO, interest subsidies should be abolished. But if the answer is YES, then by all means, we should retain interest rate subsidies. However, we must prioritize and be selective in the qualifying industrial projects.