Business Daily from THE HINDU group of publications
Friday, Jul 27, 2007
ePaper
Business Daily from THE HINDU group of publications Friday, Jul 27, 2007 ePaper |
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Opinion
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Letters Weak rupee
This is with reference to the article on India’s competitiveness “Weak rupee not the cure-all” (Business Line, June 19). The author rightly points out the way we have built stodgy companies in India since Independence. Indian companies always look for a ‘helping hand’, not only for doing business but also to stay afloat. The author subtly captures the comparative TFPs of China and India and highlights the importance of manufacturing for India to survive in the future since this kind of profitability will boom only to subsequently wither away. Indian companies should not only evolve but also have suitable risk mitigation techniques in place to ward off the political risks, and the currency risks inherent in doing business. The present and future currency scene should be managed by forex experts and not resolved by needless intervention by the government. The author rightly points out that the government should focus on improving the supply side by providing better infrastructure and facilities for entrepreneurs rather than tinkering with the country’s fiscal policy. Unless this happens the competitiveness story will be unresolved even in 2020, as sops provide only froth that fizzles out every time since there is little underlying substance. B. Sairam Chennai
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