Anil Ambani’s article, ‘Defence — where Make in India matters’, is tactical, detailed and bold. The subject is inherently emotional because it evokes feelings of national pride, patriotism and world standing. But the analysis omits an important fact of economics: the law of comparative advantage. There is a reason that the world’s aircraft engines are made by just three countries: the US, the UK and France. They became very good at it over nearly 100 years of global warfare. The drive to maintain the lowest opportunity cost is crucial, which is why the world’s most sophisticated stealth fighter, the F-35, was developed jointly by the US and its Nato allies.

While we can draw inspiration from the great technological successes of Mangalyaan and the Aakash tablet, gambling with domestic defence technology may short-change our armed forces. And let’s not forget, even countries with large military-industry complexes are loath to sharing their best technology for national security reasons unless you are part of their alliance. This subject is much too serious to wrap around sentimental statements about imported tear gas shells. Other ideas, such as establishing a shared military alliance with like-minded countries in the region, deserve consideration.

Rajkamal Rao

Bedford, USA; Bangalore, India

Don’t compromise the RBI

This refers to your edit, ‘A paradigm shift’. The government has taken the right decision to target inflation. But the independence of the RBI should not be compromised. The Centre should reduce its fiscal deficit for inflation targeting to work. Inflation is a tax on the poor and we should not be punishing the poor by our bad economic policies. Low inflation is good for a population with savings built into its culture. It is good for the growth of the economy and employment, with stable prices giving the right signals for our entrepreneurs to invest. This will increase the interest of foreign investors. The agencies will have a reason to raise our ratings; this will boost our infrastructure investment push.

Low inflation will bring interest rates down; this will encourage consumption and growth. Interest costs are important for investment decisions by corporates. Low inflation is good for investments. The positives are very clear. But we could also go in and give the mandate of full employment to the RBI and devise plans to give our unemployment data some credibility by entrusting the RBI with this key responsibility.

CR Arun

Email

First impressions mislead

The survey on the hiring of the workforce is well collated in ‘Job interviews: eyes hold the key’ (March 3). Sufficient time is required to gauge the suitability or otherwise of a job-seeker; mannerisms and body language are not a barometer of latent talent.

Several rounds of interviews, depending upon the position, seem prudent to shortlist candidates. Disposing of the job seekers within 10-15 minutes demoralises candidates. What is required is asking searching questions to determine the strengths and weaknesses of the candidate. Sometimes, selection is based on marks scored in exams; even this is misleading.

HP Murali

Bengaluru

Rift make the AAP drift

Arvind Kejriwal has shown no willingness to relinquish the post of national convener. The personality cult sits ill with the hoped-for inner party democracy. The high command culture in the AAP comes in the way of the autonomous functioning of the State units. The AAP needs to be as transparent on expenditure as on collection of funds. Kejriwal cannot renege on his promise of bringing the party within the purview of the RTI Act. In the Indian context, it appears that a left-of-centre ideological framework is indispensable for social transformation.

Prashant Bhushan and Yogendra Yadav who embody leftist idealism cannot be party to the party’s reinvention as a right-wing party. The party’s intellectual edifice will collapse if these two leaders are shunted out. The national executive should show sagacity and explore ways to settle the differences in the party’s and the nation’s interest.

G David Milton

Maruthancode, Tamil Nadu

There’s merit here

‘Defence — where Make India matters’ by Anil Ambani (March 3) is a well-articulated piece. His argument for a place for the private sector in the modernisation of our defence capabilities has merits. India has world-class corporate houses capable of manufacturing cutting edge defence devices which should further strengthen our defence preparedness. An effective ‘Make in India’ policy in the country’s defence sector will also help to drastically cut down delays and costs. Such a policy will simultaneously help us save substantial foreign exchange and create massive opportunities for jobs.

CG Kuriakose

Kothamangalam, Kerala

No service at all

The 2015 Budget has increased the rate of service tax to 14 per cent from the earlier 12 per cent plus education cess. The Budget also has an enabling provision to levy a 2 per cent Swachh Bharat cess on all or certain taxable services. This will result in inflation across the board. Eating out and staying in hotels will become costly. There is already luxury tax on hotels. The Budget should have revisited this tax for the sake of budget travellers. A budget traveller stays in a hotel just to sleep, bathe and eat. Are sleeping and taking baths a luxury?

Also, prison terms for non-filing of income-tax returns or giving inadequate details are not welcome — fines are okay. It will result in harassment. Besides, our prisons are already over-crowded. Just building toilets will not result in Swachh Bharat ,what is needed is maintenance of toilets, running water and electricity. Interest in the Swachh Bharat campaign may wane given the cess on services.

Deendayal M Lulla

Email

National identity

It seems the AAP may ease out old guards Prashant Bhushan and Yogendra Yadav. The main reasons are mainly linked to whether AAP should be expanded nationally, as Yadav suggests. Arwind Kajriwal wants consolidation in Delhi. His stand is like the Dravidian party led by CN Annadurai and his team of youngsters in the 1970s. The enthusiastic band of youngsters were able to defeat the old armchair politicians of the Congress; as a result for over 40 years Dravidian parties have been in power in Tamil Nadu. The AAP should now build itself to become an all India party.

G Ranganathan

Salem

Black is back

I fully agree with the views in ‘Black is back’ by KR Srivats (March 3). There must be stringent punishment for offenders. Governments so far have not taken any action to curb black money which is running a parallel economy. It is the child of corruption which must be ended. We need firm decisions from policymakers.

D Sureshbabu

Hyderabad

Not for the common man

It was amusing to read that Prime Minister Narendra Modi paid ₹29 in the Parliament canteen for a vegetarian meal consisting of roti, rajma, dal and salad, palak sabzi and rice. This report calls for introspection by the finance minister and his team on the purchasing power of the common man for goods and services. This critical aspect of economics appears to have been missed in the Budget. Can the common man today buy a meal or even some light tiffin for at ₹29? Will the slew of takeaways for the common man and taxpayers announced in the Budget indeed be beneficial when there is a limit for everyone including senior citizens, while at the same time one has to pay more now for services.

It is always a tough decision to sacrifice a major chunk of revenue because the options for matching compensation are less. Still, we urge the MPs to debate and suggest raising the basic tax exemption limit substantially before voting on the Finance Bill.

MA Krishnamurthy

Bengaluru

Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

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