Though the numbers of listed entities may be encouraging, it cannot be a barometer to gauge the effect of demonetisation. SMEs and retail trade are the worst-affected. Many hawkers and roadside vendors have been eliminated, and migrant workers have left. It is not surprising that the banks are showing encouraging signs. This is due to the build up of CASA due to demonetisation and the temporary respite given to NPA accounts for two months. With the lifting of the cash withdrawal limit, there will be a huge dent in the CASA of banks and NPAs are bound to scale up. Though trade and industry may revive, small traders and hawkers will die. Unless this sector is supported, any great numbers will only be for thumping chests, without hearing the voices of the marginalised.

S Veeraraghavan

Coimbatore

Unbecoming attitude

The stay on deportation from the US of people from seven Muslim-majority countries is a matter of relief. The growing backlash against Trump’s immigration order is also encouraging.

Trump equates Islam with terrorism with careless abandon. By religious profiling and pronouncing people ‘guilty by association’, Washington is playing right into the hands of the very same organisations it swears to fight. This is unbecoming of the leader of the world’s largest democracy populated largely by immigrants themselves.

G David Milton

Maruthacode, Tamil Nadu

Trump is doing what he promised. What is wrong with that? Criticism of his action is puzzling. He is bent upon stopping terrorist elements from infiltrating country and protecting the employment rights of his people. He cannot be faulted for that. No doubt there will be huge losses to companies and people who enjoyed the good life in US misusing visas. The argument that America is a nation of immigrants and benefited from contributions from other nation is bunkum. Let us hope Trump succeeds in wiping out terrorism.

VS Ganeshan

Bengaluru

Easing withdrawals? Hardly!

That the RBI has removed the limits placed on withdrawals from current accounts is not a great decision. It’s been done purely to help politicians spend money during electioneering. Besides, it’s the savings accounts that the poor depend on.

S Ramakrishnasayee

Ranipet, Tamil Nadu

Responsibility blues

World economies are still recovering from the systemic faults of US capitalism exposed in 2008. Once again, at the same epicentre, tremors of global ethnic, trade, and power bloc divides are set to emanate, not by democratic consensus but through executive directives. Totalitarian regimes have been known to resort to protectionism of one sort or another to meet social, political and economic challenges. But the global collective should be highly concerned that the US as the printer of a major world currency should disregard its responsibility of guaranteeing stability, be it of its own political fabric or its markets or its currency. Other nations cannot be expected to underwrite the US economy endlessly. The US cannot be seen abdicating its role.

R Narayanan

Ghaziabad, Uttar Pradesh

Difficult phase

This refers to ‘Push growth without fiscal imbalance’ by Sanket Mohapatra (January 30 ). Reduction in GDP growth by more than one per cent during the current fiscal due to demonetisation and other external factors is almost certain now. In absolute terms it translates into a loss of ₹1.5-2 lakh crore in GDP. This will automatically reduce collections of direct as well as indirect tax due to a lower income base and lower spendings. Saving and private investment as a proportion of GDP will also be affected negatively. With the US policy of de-globalisation, the outflow of the FII has already started. Under such circumstances the only option is to increase spending on infrastructure even at the cost of so-called fiscal prudence. Since CPI and WPI are both going southward such expenditure will not cause higher inflation.

Trupti Goyal

Jodhpur, Rajasthan

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