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The news report `Banks can fund overseas acquisitions by companies' could hit the performance of the manufacturing sector. While the RBI's move may help a few domestic entrepreneurs, it does not serve the more basic requirements of the nation.

It is well known that our manufacturing sector has been performing under par, and economists have projected low performance next year too. A free funding of overseas acquisition at this stage will only worsen this situation.

There should be greater emphasis on encouraging banks to concentrate on lending to domestic industries and on developing the badly needed infrastructurein the manufacturing sector. Hence the RBI may reconsider its decision.

S. Sairam

Chennai

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