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In spite of sane advice given by the RBI and the Tarapore Committee on capital account convertibility to ban P-Notes, the Government is dithering on the issue. The Finance Minister went to the extent of saying the other day that we should know how to manage the huge capital inflows and that exporters should find ways and means of becoming competitive instead of cribbing about rupee’s rise.

Emboldened by the Government’s stand, FIIs have had a free run and deluged the country with copious foreign money — forget the colour and source of the money. But the flood has washed away the livelihood of many workers in the garment and other export oriented manufacturing industries. The stock market has become the place where foreign players bet billions of dollars.

Land prices have shot up three or four times within a short span of 1 or 2 years because FIIs have invested billions of dollars in real estate companies directly or indirectly. The rising cost of living has hit the common man while the Government claims inflation is down to 3.01 per cent.

K. Narayanan Hyderabad

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