Economy
Rising capital-output ratios -- Implications for industrial growth rates
SOME months ago, the Prime Minister, Mr Atal Bihari Vajpayee, talked about attaining a 9 per cent growth rate for the economy. The Finance Minister, Mr Yashwant Sinha, has been continuously talking about reaching a steady growth rate of 9 per cent per an num, while the Prime Minister's Economic Advisory Council has mentioned a target of 8 per cent growth rate over the medium term. The growth rate has, however, slid from an average of 7 per cent to about 6 per cent now. Two instruments can be used to rais e the growth rate. One: to raise the net savings ratio; and the other, to bring down the net capital-output ratio. Each instrument requires specific policies.

Editorial
Not WTO-compatible
THOUGH ALL QUANTITATIVE restrictions (QRs) on fertiliser imports are slated to go from April 1, the Government still continues to grope for a suitable policy response. Unfortunately, even the recommendations, now submitted by the Gokak Committee set up t o study the implications of the WTO agreement on the fertiliser industry, may not be of much help. If at all, they may only add to the confusion and uncertainty because they do not appear to be compatible with the country's agreement with the WTO or also the long-term interests of the industry.

Petroleum
Refining/marketing of petroleum -- Progress hinges on freeing the PSUs
ONE STEP forward, two steps back. This would aptly describe the dithering in decision-making by the key players in the Government -- the Ministry of Petroleum and Natural Gas, the Department of Disinvestment, and the Finance Ministry -- over the privatis ation and divestment plans in refining and marketing of petro products.

Politics
Road to Yangon
ON HIS arrival at Yangon on Wednesday, the Foreign Minister, Mr Jaswant Singh, (as reported) ``stoutly defended India's credentials on democracy but advocated an all-encompassing `political and economic engagement' with Myanmar keeping the `national inte rest in mind'''. In fact, he has been quoted as saying: ``India's credentials on democracy need not be proved to anyone, but we have to keep our national interest in mind''.

Taxation
Erring on air
MARUTI has been having its share of problems, and one such was from the Commissioner of Customs, Mumbai. When the company fitted catalytic converters to the exhaust systems of its motor vehicles, the dispute was not whether the cars were performing well, but on classifying the converters. The company wanted to call them ``environment protection equipment'' but the Department preferred the ``air purifier'' category.

Excise heat on AC plants
Joseph Prabhakar discusses the excisability of air-conditioning plants

In the wake of the quake
N. R. Moorthy warns that relief fund collections, if not monitored, could lead to a scam

Great expectations
T. C. A. Ramanujam looks at the pre-Budget pulls and pressures on the Finance Minister

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