Neutral impactEconomy
Free is the most expensive word in public policy, says CEA Anantha Nageswaran
BusinessLine 1 hr ago·3 Aug 2026, 1:20 pm
Chief Economic Advisor Anantha Nageswaran has warned that the concept of 'free' is often a misleading term in public policy. He argues that while goods like water may be free at the point of use, the actual cost is often hidden in the form of subsidies, infrastructure maintenance, or inefficiencies elsewhere in the system. This perspective suggests that the true economic burden of providing essential resources is much higher than it appears on the surface.
For investors, this signals a potential shift in how critical infrastructure assets are valued. If the government moves to reduce subsidies or implement user charges, companies involved in water treatment and distribution could see improved profitability. However, it also highlights the need for businesses to adapt to a more market-oriented approach to resource management, which could impact operational costs and long-term investment strategies.
Investors should watch for any legislative changes regarding water tariffs and subsidies. A move toward cost-recovery models could benefit utility companies, while a lack of reform might keep these stocks in a holding pattern. The focus should remain on how policy adjustments will affect the financial health of these essential service providers.
Key takeaways
- Category: Economy.
Why it matters
A routine update. Use the price and stock snapshot to gauge how the market is responding.
