The Hindu Business Line : Steel tariffs

This is with reference to the editorial "Tinkering with tariffs" (Business Line, August 23). As rightly pointed out in the editorial, the Government's decision to reduce the import tariffs on non-alloy steel to 5 per cent may not reduce the inflation rate. The Government has to realise that the steps that it has been taking to stabilise the inflation rate will not work, and they may at best act as short-term palliatives.

This is so because the inflation rate has been rising in most countries across the globe as a result of the steep increase in the price of crude, and it would be impossible for any Government to tackle the problem locally.

What needs to be done is develop alternative sources of energy. This will ensure that India is not dependent on petroleum products for its energy requirements.

The Chinese Government is reported to be funding research of new forms of energy in a big way. The Indian Government should also do the same.

Till alternative sources of energy are tapped, and the dependence on imported oil is reduced, India can never become the superpower it hopes to become.

V. Karthick

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