Apropos to the editorial ‘New normal’ (January 28), the US Fed finally decided in its January monetary policy meeting to end its ultra-cheap money policy by increasing interest rates and end asset purchases. Emerging economies like India will face a double whammy in terms of surging inflation and a weak rupee. Now that the Fed has decided to act, it is time for the RBI to shed its ‘accommodative’ monetary policy and raise interest rates.

Foreign investors pulling out money in the changed scenario is expected to put enormous pressure on exchange rates. Rising fuel prices will have an adverse impact on India’s trade deficit. The ongoing Russia-Ukraine tussle is not helping the cause. Under the circumstances with external factors posing a huge challenge, India needs to derive its strength intrinsically with a huge investor base. 

The Finance Minister has an unenviable task to create an investor-friendly climate in the ensuing Budget. Looking at the priority areas, the government has very little legroom to manoeuvre on the expenditure side since various welfare measures are intertwined with the ongoing Covid pandemic. On the other hand, rise in GST collections in recent months is a silver lining. The government need to hasten up disinvestments and embark upon an aggressive asset monetisation programme to augment its resources. Ultimately, putting more money in the hands of the public to kick start domestic investments will be the “icing on the cake”. 

Srinivasan Velamur

Chennai

Air India divestment

This refers to ‘Tata group at the controls of Air India’ (January 28). The Narendra Modi government has done well to hand over the command of the debt-ridden airline to the Tata group . Different governments at the Centre have merely passed on the buck, ignoring the worsening situation at the airline. The concept of ‘mixed economy ‘ is now getting momentum with several private players getting roped into  key industries of the government. The main problem in all these cases is how to manage the human resource costs without resorting to major job cuts. 

Katuru Durga Prasad Rao

Hyderabad

Onus on Tatas

In a move that involves not just business motives and strategies but also a mix of emotions, including from the public, the Tatas, after 69 years, have taken over the control of Air India. Being India’s only national carrier for almost seven decades, its handover by the government was inevitable for its healthy sustenance. The onus is now upon the Tata group to transform Air India into a competitive business entity.

Ramala Kinnera

Hyderabad

Set to fly high

 The government needs to be appreciated in achieving the divestment of Air India in a time-bound manner. With a consortium of lenders led by SBI agreeing to provide loans to the Tata group, one should soon see the ‘Maharaja’ flying high again.

Shruti Sharma

Ujjain, MP

Attracting investments

This is with reference to ‘Why we need foreign investment’ (January 28). A conducive environment needs to be created to attract foreign investment. The solution is simple. Good infrastructure, a well-developed transport system, providing electricity at cheap rates, and removing administrative hurdles will go a long way in boosting the confidence of foreign investors in India. Favourable conditions must also be created for domestic and NRI investors. This will help usher in economic growth.

Depending too much on foreign investment, especially from countries like China with which we are at loggerheads over border issues, is not a good idea. Good infrastructure and removing bureaucratic bottlenecks will automatically attract foreign and domestic investments.

Veena Shenoy

Thane

Raising agri exports

This refers to ‘Boosting farm exports’ (January 28). On the lines of Basmati rice which has a brand value globally, we need to create a niche in the global markets for our agriculture and horticulture produce like mangoes, apples and bananas. Though a few countries import certain seasonal fruits from India, many fail the quality test at the point of origination itself.

The Centre must ensure that there is no import of any horticultural produce that is available locally. Besides, India needs to quickly find a permanent solution to the disputes arising out of the WTO’s Agreement on Agriculture.

RV Baskaran

Chennai

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