Obviously such subsidies do not stifle economic growth.
>Reuters India > >PM says costly subsidies must be tackled >http://in.reuters.com/article/businessNews/idINIndia-30401520071108?sp=true > >Thu Nov 8, 2007 > >By Rajkumar Ray > >NEW DELHI (Reuters) - India must tackle growing subsidies on food, >fertiliser and fuels, and improve its infrastructure if it is to sustain >economic growth at around 9 percent, the prime minister said on Thursday. >India discounts widely used fuels, including petrol, diesel, cooking gas and >kerosene, and the government is yet to raise retail prices of the fuels this >year despite a surge in global oil prices towards $100 and a series of >all-time highs. >http://in.reuters.com/article/businessNews/idINIndia-30401520071108?sp=true > >
