Giving a fillip to growth

Chief Economic Advisor V Anantha Nageswaran has correctly observed that India needs to have more land and labour reforms to absorb the huge capital inflows taking place in the country (April 3). That $50 billion foreign portfolio investments have been received in India in 2023-24 is indeed an encouraging sign.

This is a clear indication that India is growing and its business environment is friendly too.

However, things do not end here. Hence, the CEA has underscored the need for land and labour reforms, as capital (money or physical) can be of little use if the other two factors of production, namely land and skilled labour, are not available in adequate quantities. Especially, the problem of human capital cannot be solved overnight. It will take considerable time. The governments (Central and States) should put on their thinking caps and work in the direction of creating land, labour and capital on a sustained basis and also make the optimum use of them.

S Ramakrishnasayee


Global trade rules

Developed countries give $600 billion of subsidies every year to farmers but are still considered compliant with WTO rules because they opt for income support to their farmers instead of providing subsidies like India. In these skirmishes, the larger battle for expanded world trade is lost. While individual nations gladly tap into the advantages of globalisation, they show reluctance to share common problems in the interests of increased trade. Global trade has steadily weakened. When growth declines, it is followed by a decline in trade. This sets up a vicious cycle and skews progressive discussions. Deterrence more than dialogue, then dominates trade regulation.

R Narayanan

Navi Mumbai

Vistara must act fast

This refers to ‘DGCA seeks daily report on Vistara flight cancellations’ (April 3). Issues at Vistara has led to a significant number of flights of the airline being delayed or cancelled in the last few days. The current situation has arisen due to its planned merger with Air India, which has resulted in pay cuts and employees showing discontent and taking sick leave. Last month pilots were given an ultimatum to accept a new pay structure or give up the opportunity to work with Air India. DGCA has rightly asked for a detailed report as the delays and cancellations are creating huge issues for the flyers. Vistara has to find a way out soon because other airlines will take advantage of the situation and increase fares.

Bal Govind


Curbing emissions

Apropos ‘Agri greenhouse gas emissions must drop 30% to align with Paris pact’ (April 3). It is nearly eight years since COP21 was signed, making it legally binding for 196 parties to implement climate change measures. The only way to mitigate agri greenhouse gas emission is to implement drastic changes in agrarian practices by encouraging the unorganised farm sector through financial packages like subsidies and incentives for farm mechanisation. Withdrawal of machine planting subsidy for paddy and half-hearted organic farming mission reflect the ground realities.

Rajiv Magal

Halekere Village, Karnataka