With reference to the editorial ‘Sourcing blues’ (June 12), it is a bit surprising that the government is discouraging telecom equipment manufacturers and going against it’s flagship Make in India programme with its proposal to dilute norms on local sourcing and local value addition. If the domestic manufacturers are found to be unable to meet the mandated local sourcing criteria, appropriate steps may be taken to encourage MSMEs, with suitable incentives, to step-up their production to meet the demand of domestic telecom equipment manufacturers. The government should not succumb to any pressure from international telecom equipment makers, and ensure protection of local manufacturers.

Kosaraju Chandramouli

Hyderabad

Rare earth supply

Donald Trump has claimed that the problem of supply of rare earths has been solved with China agreeing to continue with the supply. Rare earth elements are not rare but the increasing use of these in defence equipment and clean energy has made them a critical component in manufacturing. China is in a happy place as 50 per cent of the minerals of these elements are found in the country, giving it a strong bargaining chip with other nations including America. However, China has yet to confirm the deal, and Trump has been too hasty in making claims which were later found to be untrue.

Anthony Henriques

Mumbai

Streamlining gold loans

In India, gold is not merely a precious metal but a cultural cornerstone, symbolising wealth, tradition, and security. For millions, gold-backed loans serve as a vital financial tool, providing quick liquidity during emergencies or for income-generating activities. The accessibility of gold loans, often requiring minimal documentation, has made them a preferred financing option for those underserved by traditional banking systems. The RBI, recognising the exponential growth of the gold loan sector and its inherent risks, introduced the Directions on Lending Against Gold Collateral in 2025. By standardising lending practices, the RBI seeks to enhance transparency, mitigate risks, and ensure ethical conduct in the gold loan ecosystem.

Jayanthi Subramaniam

Mumbai

Safe savings schemes

This refers to ‘How households are driving growth’ (June 12). Households deposit their savings not only with banks, insurance companies, etc., but also with post offices. There are many post office savings schemes offering reasonable rates of interest. At the end of the day, people want their deposits to be safe. Nationalised banks, post offices, Life Insurance Corporation, and so on, easily foot the safety bill. They, of course, can use the funds productively and enhance capital formation.

S Ramakrishnasayee

Chennai

Published on June 12, 2025