The Hindu Business Line : Pick-up in economy

The global economy had begun to see signs of pick-up. However, the attention has turned to the East. "Will Asia lead the world growth charge?" (Business Line, September 30). And with China and India estimated to grow around 8 per cent and 6 per cent respectively there is hope. Deficits and public debts are major areas of concern for India. The RBI governor, Dr Yaga V. Reddy, defended the build-up of reserves and agreed that favourable market conditions were conducive to achieving greater fiscal sustainability.

The Finance Minister, Mr Jaswant Singh, has said that he will not let forex anomalies persist. It is hoped that decisions will be taken on several crucial matters as soon as the RBI Governor settles down in his job.

Turning to the US, 9/11 and its consequences, the Iraq war and increase in defence and military expenditure have had its impact on American economy. If only the US cuts military expenses by a small percentage, it may not be difficult for it to give concessions to the developing world and also to achieve better growth.

Jacob Sahayam

Thiruvananthapuram

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

Article E-Mail :: Comment :: Syndication

Stories in this Section
Tea in hot water

Where core competence soars

Vegetarian power

Cancun collapse: Opportunities and threats

FDI quality

Pick-up in economy