AAP to meet economists, industrialists on Sunday to pen plan for economy

The Aam Aadmi Party may have finally decided to sit down and decide on the party's economic policy and strategy.

The Economic Times today reported that the AAP will hold an 'economic darbar' on Sunday, bringing together economists, industrialists, former bureaucrats and even a former-RBI governor to hammer out an official paper on its economic agenda.

The move comes after the party drew flak from the Congress and some of the industrialists for opposing the FDI in the retail sector in Delhi. The party had written to the Department of Industrial Policy and Promotion reversing the erstwhile Congress government decision to allow foreign super markets in the city state.

The party has also been criticised for cutting power tariff in Delhi, without taking into account the impact of such an action on power distribution companies and the government's financials.

Delhi Chief Minister Arvind Kejriwal. Firstpost/Naresh Sharma

Many industrialists, who also supported the party for its anti-corruption stance, have accused the party of indulging in blind populism. 

"...You cannot decrease tariffs by increasing subsidy and expect state economy to be in good health.," Referring to Arvind Kejriwal's promise to cut power rates in New Delhi, K R Bharat, managing director of Advent Advisory Services said in a television interview last week.

"Typically, what happens is when you increase subsidies you are putting increased financial burden on the state, increased investments then do not happen in the state which leads to revenue slowdown," he said.

He further went on to say that based on whatever little was known of AAP's economic views, the markets would be 'spooked'.

"Since doles are meant for the poor, they are easy to justify politically. This is why politicians love doles...Once you commit yourself to doles, you are essentially committing yourself to a degree of corruption by interfering with market forces in the pricing of goods and services," Firstpost's R Jagannathan had argued in an article.

All eyes are now on Sunday's meeting to see what Arvind Kejriwal's final policy stand will be.