Strike over fuel price hike paralyzes India, dozens hurt in violent clashes
International Business Times, Monday 5 July 2010, 09:57
“India turned violent, Monday, as workers of opposition political parties clashed with the police amid a nationwide strike called over higher fuel prices. The clashes have left dozens seriously injured.”
India fuel strike bites, tests resolve for reforms. Total shutdown in opposition-ruled states
Reuters, Monday Jul 5, 2010 12:27pm
“Opposition workers set buses on fire and hurled stones as a nationwide strike over higher fuel prices shut down parts of India on Monday in a test of the government’s efforts to cut subsidies and trim a budget deficit.”
This follows similar protests two years ago:
India strike over fuel price rise
BBC, 09:41 GMT, Thursday, 5 June 2008
“Communist and opposition parties in India are holding nationwide protests against a 10% rise in fuel prices.
The Communist-governed states of West Bengal, Tripura and Kerala are badly hit by a strike called by the parties who say the rise will fuel inflation.
The government says it had no choice because of surging global oil prices.
India imports nearly 75% of its crude oil requirements but subsidises the cost of domestic fuel products to help contain inflation and protect the poor.
India’s Congress party-led government faces key state polls this year ahead of general elections due in 2009.
The BBC’s Sanjoy Majumder in Delhi says the party is now worried about the political fallout from its latest move.”
We may be in a better position than India to handle price rises, but rises will continue to bite, and eventually we will find ourselves in a similar situation. Riots on the streets.
In the meantime the situation in India will have become much worse, meaning that the state will have had to shift more attention and resources to managing civil unrest (and disruption to businesses). For us that will mean, for example, disruption to our call centres, interruption to the supply of cheap goods, and fewer Indian resources focused on fighting global terrorism.