Subsidies - How useful?

Political and social interests often conflict with economic interests. If a balance is not maintained, then the repercussions of the same can be perilous. Take subsidies for instance. There are times when subsidies have to be doled out for obvious socio-economic reasons. But there has to be an end to such benevolence, right? If subsidies don't stop, they directly impact the economy's fiscal health. To give you a numeric idea, subsidies eat away as much as 2% of India's Gross Domestic Product (GDP).

In the Union Budget 2011-12, the finance minister had set an optimistic fiscal deficit target of 4.6% for the fiscal year. But can it really achieve that goal? Montek Singh Ahluwalia, the Deputy Chairman of the Planning Commission opines that we need to cut subsidies to bring our fiscal deficit lower. He points at some very pressing concerns that could derail the government off its fiscal deficit target for the year. We all know that oil prices, especially those of diesel, kerosene and cooking gas are heavily subsidised by the government. It is not difficult to imagine how much burden rising international crude oil prices put on the government's finances. The same holds true for coal. Coal prices are kept artificially close to 50% of global coal prices. If that was not enough, subsidy of electricity nibbles away 1% of the state GDPs.

These are issues that need to be addressed with urgency. Otherwise, the malady that is plaguing the Western world will soon creep to our shores as well.

The above is from the news letter which I receive from Equitymaster.
While I normally agree with what they write in the newsletter, this time I differ.
If a person like Mukesh Ambani can live in a house costing Rs 40 billion, which has been made possible by the policies which the present finance minister Pranab Mukherjee initiated during the time Dhirubhai ruled. All policies then were made to benefit Reliance.
Just because these big industrialists have voices through the media and the politicians they can get what they want but the poor people just want a few subsidies so that they can live just above subsistence level.
They want just two square meals which is made possible since some items are subsidized.
Even this is not acceptable to the media and the industrialist.
There is a better solution.
Why don't they just collect all the poor in ships and dump then in the Arabian Sea or the Bay of Bengal.
After that they should get very good GDPs.