MPC keeps inflation focus

The decision of the MPC (Monetary Policy Committee) of the RBI to keep the repo rate unchanged at 6.5 per cent and maintain the policy stance of withdrawal of accommodation does not come as a surprise. While there has been a broad-based moderation in inflation, higher food inflation keeps headline numbers elevated.

With uncertainties in food prices continuing to pose challenges, the MPC cannot afford to lower its guard, and it is incumbent upon it to be vigilant about the upside risks to inflation. The RBI has retained its GDP growth forecast at 7 per cent in FY25. However, headwinds from geopolitical tensions, volatility in international financial markets, and geo-economic fragmentation pose risks to the growth outlook.

M Jeyaram

Sholavandan, TN

Giving start-ups a leg-up

This is with reference to ‘A grim future for start-ups’ (April 5). There is no dearth of talent and ideas in India, but too much government interference or bureaucracy prevents our entrepreneurs from executing their ideas and creating jobs. India should learn from Silicon Valley, which is home to many of the world’s largest high-tech corporations as well as thousands of start-up companies. In Silicon Valley, risk-taking is encouraged, and entrepreneurs are heroes.

It is important to understand that the US government practically has no role in the functioning of Silicon Valley. It funds basic research, provides education and infrastructure, and does not come in the way of entrepreneurs. Secondly, there is no social stigma attached to failure, but failure is considered a stepping stone towards success.

If we can learn some basic principles from Silicon Valley, I think our Prime Minister’s ambitious scheme of start-ups will be a huge success.

Veena Shenoy


API manufacture

Promoting domestic production of medical devices is welcome. The country has all the potential to meet both domestic and export demand. A similar incentive scheme may be extended to manufacturers of Active Pharmaceutical Ingredients (APIs) required to make pharmaceutical formulations. Currently, around 70 per cent of these are being imported from China. By producing API locally, the cost of our medicines could be made still more economical for the domestic market and also be more competitive in the international market.

AG Rajmohan

Anantapur, AP

Growth with jobs

The recent India Employment Report 2024 of the ILO says India will be the third-largest economy in the world by 202. However, India’s per capita income of $2,601 is the lowest among the G-20 countries. The report also indicates that the youth unemployment rate has been rising over the past several decades. This shows that the high economic growth had little impact on youth employment. The Indian economy is on the growth track, but not on the right path. The focus should be on reducing poverty, creating jobs and keeping food prices low.

Haridasan Rajan

Kozhikode, Kerala