This refers to “Towards new-age manufacturing” (Business Line, July 28). Manufacturing and farm sectors form the backbone of economy. But it is unfortunate that the Government is not giving much importance to these sectors.

With the Maruti labour unrest, it is time that the departments concerned modified the labour laws in accordance with the changing needs.

The universities should focus on R&D and monetary benefits should be increased for research students.

Vedula Krishna

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Treasure gold

In ‘‘A gold medal for Subbarao’’ (Business Line, July 27), the author mentions that the World Gold Council in 2011 refers to a domestic stock of 18,000 tonnes of gold in India. The RBI should persuade the Government to understand the significance of this treasure lying idle in the country, and put pressure on the powers that be to put at least some 10 per cent of this to productive use in the next five years. This will reduce the country’s gold import bill by 50 per cent. This can be achieved by:

Introducing gold-backed financial instruments which are not dependent on imported gold;

Bringing a portion of household gold stock by offering some instrument like ‘Gold Bond’, backed by government guarantee to return solid standard gold at the time of redemption, which could be, say, after 10 years and a small return in the interregnum;

Arrange for infrastructure, technology support and linkages for gold refining and certification facilities of international standard;

The RBI and the Government could consider even deficit financing for procurement of domestic gold as this could be the beginning for adopting a partial ‘Gold Standard’.

M. G. Warrier

Mumbai

(This article was published on July 29, 2012)
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