This is with reference to the editorial, ‘The reappearance of global risks’ (December 19). Of course, India is not immune to external developments. The fall in oil prices has come as a boon, but instead of using these savings effectively, the government’s short-sighted decision to scrap gold control blows out part of the savings. The government has to introduce reforms to see action on the ground. Increasing domestic investment and improving industrial activity is paramount. We shouldn’t use Sensex as a barometer as it is more driven by short money than long money. The government should start acting immediately before the euphoria dies down.

Sridhar Narasimhan

E-mail

Long overdue

The Centre’s inclination and intention to take the ordinance route to hike FDI in the insurance sector to 49 per cent is a logical step. It cannot be faulted given the unabated disruption of the proceedings in the Rajya Sabha. It goes without saying that the Insurance Bill has been hanging fire for the past eight years. The time to act is more than overdue notwithstanding the likely protests and criticisms from opposing parties.

CG Kuriakose

Kothamangalam, Kerala

No to GM

This refers to the article ‘Opposition to GM crops lacks basis’ by Ram Kundinya (December 19). The article seems to argue that several countries have embraced genetically-modified crops. In fact, countries such as Denmark, Norway and Sweden do not cultivate GM crops. Also, the article talks about the breeding done naturally by our farmers for a very long time and calls it a form of genetic modification. But this cannot be termed ‘GMO’ (genetically modified organism) because it doesn’t involve implanting a poisonous gene in crops to fight insects as done by big seed corporations.

There’s a reason why developed countries have banned GMO. Most of Europe doesn’t allow these crops for human consumption. These are countries that score high on the human and overall development indices. They have come to these conclusions based on scientific evidence and we need to see these countries change course before we do.

CR Arun

E-mail

Make it clean

In ‘Too much adhocism in disinvestment’ by Pradeep S Mehta (December 19), the author elaborately discusses the pros and cons of disinvestment in PSUs and State-owned banks. Every time a disinvestment is made, it is done only on an ad hoc basis without proper long- term planning. Such a move must be for longer-term benefits and should be non-controversial in nature without giving scope for the CAG or the CBI to intervene.

TSN Rao

Bhimavaram, Andhra Pradesh

The caretaker

In a way, the downfall of SpiceJet is not surprising. When basic airfare is less than the taxi charge to the airport or when carriers provide great in-flight dinner spreads, trouble must brew. At least private carriers stop showering this kind of largesse on clients, but the State carrier, Air India, survives on huge government dole. Why then single out SpiceJet for special treatment?

Coal India has low efficiency and enormous pilferage at the pit heads, State electricity boards report huge transmission losses and use this brazenly to hike tariffs. Big-ticket social schemes leak heavily. Public distribution systems are a travesty of social equity. We as a nation have never believed in balancing the books. The concept of a mai baap sarkar is too deeply ingrained in our system.

R Narayanan

Ghaziabad, Uttar Pradesh

Other side

The Swiss banks’ decision to impose negative interest for funds parked with them creates a public perception of curtailing foreign investments and appreciates the value of their currency. But one has to wait and watch and contemplate on the theory that the move might be due to weak economic growth, which would result in lower or negative returns on investments. Paying interest to depositors would be less profitable in the current economic scenario.

Vikram Sundaramurthy

Chennai

Related Topics
comment COMMENT NOW