Economic Cost Matters

ALMOST TWO YEARS after the last Bharat Bandh, educational institutes, transport services, and stores were shut in large parts of India as Opposition parties protested the continued rise in fuel – diesel and petrol – prices. A Bharat Bandh leads to an estimated loss of `25,000 crore to the economy according to an Assocham study. Trade, transport, hotels, and financial services – all a substantial chunk of GDP, are directly impacted by the bandh. More importantly, it affects the attractiveness of the country as an investment destination. But, then that is the price that the BJP government has to pay, as elections get closer, and fuel prices continue to be on fire.