The Hindu Business Line : Using reserves

This is with reference to the editorial “Dealing with plenty” (Business Line, October 6) India should slowly and surely move towards a laissez faire system and let the economy follow its natural course.

We must reduce interventionist measures, while ensuring that an optimal amount of regulation is still in place. Organisations such as the IMF and the World Bank have almost completely lost their relevance for countries such as India, Brazil, Russia, China and a few other Latin American countries.

With our rich and proven experience in developmental economics, we can move out of the shadow of the Bretton Woods twins and initiate development projects both within and outside the country. Improving infrastructure is an inevitable responsibility of the Government , and India should use its foreign exchange reserves judiciously to initiate infrastructure projects.

While subsidies and tax concessions, no doubt, lead to greater fiscal deficit, infrastructure projects are more worthy of tax concessions (to investors) than employment guarantee schemes and the like.

Vishwas Mysore, Kharagpur