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This refers to “Getting ‘Make in India’ right” by R Srinivasan (October 16). Several signals from the Government suggest what ‘Make in India’ really means. Will it free enterprises from permit/inspection raj? Yes, the Small Factories (Regulation of Employment and Conditions of Services) Bill, 2014, when enacted will free enterprises from vexatious inspections and permits.
Will India become a cheap production centre? Yes, 100 new ‘smart cities’ will make land inexpensive for industries; labour law reforms will guarantee cheap and disciplined labour; liberal tax laws will promote capital accumulation; low interest regime relative to inflation and public sector banks will assure cheap availability of capital; private sector partnering government will be huge business.
Will there be massive creation of labour intensive jobs? No, liberal investment allowance and depreciation will promote jobless growth; the NREGS is being put in cold storage. Will there be more decent jobs? No, the key fundamental human rights of workers, namely the right to organise and the right to collective bargaining are being denied in India.
KVA Iyer
Kochi
The article makes a forceful point about choosing between GDP growth and jobs. Obviously, incremental FDI in India will scale up our GDP and bridge the gaping CAD. But, as rightly pointed out, it will not generate jobs for India’s young workforce.
More than 40 per cent of those currently engaged in agriculture desperately want to abandon the profession, many among them uneducated youth. Does the Government have a foolproof road map for these young Indians to find meaningful alternative employment? As of now, they only contribute to urban migration. ‘Make in India’ is a catchy slogan, but it should have a wider reach and ensure ‘Make young Indians India’s Next Workforce’ in meaningful enterprises.
KP Prabhakaran Nair
Unreasonable expectation
With reference to the editorial, “Respite on inflation” (October 16), it is heartening to observe that both WPI and CPI have registered a sharp decline despite the shortfall in the monsoon, discouraging growth in the manufacturing sector, not so encouraging trend seen in trade deficit thanks to the steep increase in gold imports and consequent adverse impact on the fiscal deficit despite the steep fall in global oil prices.
With all this, expecting the RBI to be soft on its policy rates is unrealistic. Though the RBI is expected to have a monetary policy which supports growth and price stability, it has of late been concentrating only on price stability and the flexible approach expected of it has been elusive.
TV Gopalakrishnan
Online
No clarity
I subscribed to the Inflation-Indexed National Savings Securities (IINSS). While mobilising subscriptions, the Government promised an assured return of 1.5 per cent per annum over the CPI, compounded half-yearly and payable on maturity. Certain anomalies are observed on the face of the certificate. The rate of return is not at all mentioned.
The fact that the rate is linked to CPI is nowhere stated. There is no clause about the minimum rate of 1.5 per cent per annum over CPI. The reference date for reckoning CPI on a quarterly basis is not there. The certificate simply states that it has been issued subject to the the terms and conditions laid down in the notification. In these circumstances, I wonder how an ordinary investor would understand and appreciate the interest-rate mechanism involved?
N Swaminathan
Tiruchirappalli
Hygiene’s for all
The article “Hand-to-mouth existence” by Nitya Jacob (October 16) was thought-provoking. While inculcating good habits and personal hygiene among children is the responsibility of parents and teachers, they go unheeded owing to lack of awareness.
Celebrating World Hand-Washing Day is important not only for children, but also for adults.
R Prabhu Raj
Chennai
Stock shocks
How can you explain the movement of the stock indices — Sensex and Nifty — in the last one year? The US stimulus package of $85m a month (cash being pumped into the US economy by the Federal Reserve) has not helped the ordinary US citizen because the stimulus package has been siphoned off by Wall Street for investment in emerging markets like India. US funds from Russia and Ukraine have been diverted for deployment in emerging markets like India, thus creating a bubble as stocks have run up by 300 per cent in the last 6 months, while their P/E values have hit astronomical values.
The Indian government’s action to unearth black money is another reason. Black money created through real estate, professional colleges, corruption and scams have been deployed in the stock market. Stock prices have been manipulated for profit through stock split.
Where are our regulatory institutions meant to protect investors?
Shajoo Anthappan
Good precedent
The recent Karnataka High Court judgement denying bail to former Tamil Nadu chief minister Jayalalithaa should be studied well by lawyers and other judges. Granting of bail should be the prerogative of the court, not the public prosecutor. At present, if the public prosecutor does not oppose the bail (for political reasons ), the courts release the accused on bail.
S Raghunatha Prabhu
Alappuzha
Spot on
Your leader, “Taking cover”, (October 15) is spot on. In addition to banks becoming more responsive to this, what some believe is risky behaviour on the part of corporate executives and the so-called gut feelings of promoters, the general awareness regarding the cost of unhedged exposures among shareholders is very low resulting in undue risks being taken by the executives. It would, therefore, be appropriate to evolve a mechanism by which the executive is held accountable for the unhedged exposure.
One way is to allow the statutory auditors to seek and obtain in writing a statement from the executive for the reason for this exposure and hold the executive accountable during subsequent reviews. As and when contradictions to the declaration by the executive are found, the auditors shall have the privilege of qualifying his report, if he deems fit. In the recent past when the rupee tumbled from the highs of ₹47-48 to ₹68, some other corporates who had to retire short-term debt had to take huge hits. We should forewarn stakeholders of such an possibility in the near future.
V Balakrishnan
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