The Hindu Business Line : FM confident of taming inflation

It is paradoxical that despite the record growth in GDP, inflation has soared to 6.73 per cent for the week ended February 3 from 6.58 per cent the week earlier.

It is to be appreciated that the Finance Minister, Mr Mr P. Chidambaram, is seized of the impact of the inflation on the poor. The ban on export of skimmed milk powder, wheat and freer import of maize will help reduce inflation.

The RBI too is taking a number of measures, the most recent being the CRR (cash reserve ratio) hike. The slashing of fuel prices will go a long way in bringing down the prices of essential goods, as the freight charges on transportation will come down. Therefore, in view of all these measures, it is hoped that the Finance Minister can tame the inflation.

S. Nallasivan, Tirunelveli.

The Finance Minister says that he is confident of taming inflation. But we need results. The steps taken so far to tackle supply side constraints as also the fiscal and monetary measures have not yielded the desired results. Steps such as having a better weekly Consumer Price Index, monitoring the distribution of essential articles through PDS, allowing free flow of goods from rural areas to all parts of the country, a policy on managing the value of the rupee, and so on, will help. But, ultimately, it is agriculture growth that will play the lead role in solving the problem of inflation.

A. Jacob Sahayam, Thiruvananthapuram

One of the main ways indicated by the Finance Minister to tame inflation is to improve the capital market, by imparting financial literacy skills at schools and colleges free of cost and, thereby, attracting a sizable portion of household savings and income into the capital market. But, as of now, only 4 per cent of household savings enter the capital market. He has also indicated some comprehensive amendments to the SEBI Act to tap the Investor's Education and Protection Fund.

R. R.Gnanasekaran, Madurai

Responses to Sticklish Issues dated February 5

Missed calls are possibly a reflection of the value-for-money psyche of the Indians. It is a pity that companies are losing after having created the infrastructure at huge costs. TRAI should permit the telcos to charge for the missed calls if the number dialled is not engaged.

S. Krithivasan, e-mail

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