There is a strong case for the government – and the opposition – to recognise how the Modi government and its allied group of companies profited at the cost of the poor.
https://thewire.in/economy/india-inflationary-tax-poor-corporate-greed-price-gouging Companies, particularly in oligopolistic market conditions (markets where few firms/corporate companies control the market share of a commodity) tend to keep prices high to earn abnormal profits, especially in times of conflict, crisis or emergencies, and ‘greed’ underlines the motivation for artificially producing inflation, acting as a tax on the most vulnerable and poor.
When oil companies were making abnormal profits from volatile oil prices in Europe, one of the measures adopted by the European Union was to impose a windfall profit tax on the energy providers – to correct the abnormal rise of incomes experienced by such companies and give relief to the consumers.
In the Indian scenario though, instead of imposing any windfall profit tax on profiteering firms, the Narendra Modi government did the opposite by closely colluding with oil companies to profit from any potential gains made from cheaper oil imports (from Russia).
India’s own tryst with ‘seller’s inflation’
18/12/2023