This refers to the news report, "SWIFT, the global finance system that western powers can twist", (February 28). The decision of western countries to shut Russia out of the international inter-bank financial messaging system (SWIFT) would make settlement of Indian trade with Russia difficult. Apart from defence and energy sectors, the Indian jewellery industry is dependent on Russian precious stones, which could affect exports. While the short-term repercussions could take a toll on India's growth, it is the split in the global economy that would affect the long-term prospects.

While India had joined the efforts of China in 2014 to challenge the IMF and World Bank, it is highly unlikely that India would be a part of any alternative system led by Beijing after the recent tensions along the Line Of Actual control.

If the global economy splits inot US and Chinese spheres of influence , India will not be able to reap all benefits of the global free trade regime, hitting its growth and welfare agenda.

N Sadhasiva Reddy,

Bengaluru

India's direct tax regime is conspicuous by its complexity, fewer slabs and slew of exemptions. While several attempts have been made hitherto to simplify direct tax laws, it had not yielded desired results Unveiled by the erstwhile UPA ledrnment athe Direct Taxes Code was aimed at simplifying the direct tax regime with a thrust on doing away with exemptions, but it did not take off much to

In a bid to simplify tax laws, the current NDA government had introduced new income tax slabs. However, with new tax slabs being made optional, it too had not created a desired impact By disincentivising old tax regime with fewer slabs and more exemptions, the union government can encourage people to switch over to new tax slabs.

M Jeyaram

Sholavandan (TN)

Need for buffer stocks

Apropos Food for thought (February 28)'; the uncertain nature of production due to the vagaries of nature is the reason why there is need for a buffer stock. Agriculture produce cannot be left to tdemand and supply to determine prices. Therefore the governments face a challenging task in procurement.

Rice and wheat cultivators have enough of political clout ito arm twist the government into raising the MSP. This is not to say that they are wrong in demanding better prices. Moving away from traditional crops to more remunerative crops must be encouraged.

There's something to be said about people's tastes. Generations have traditionally consumed rice and wheat. So demand has always existed. Only when tastes change can shift in cultivation patterns be expected.

Anthony Henriques

Mumbai

Shocking lapses

With reference to the news report “Like NSE, MCX may have also failed to preserve data on former MD’s computer” (February 28). It is shocking to see how reckless institutions have been in such important matters which even a small time business cannot afford to do. It shows that there are many lapses in top management levels in such organisations which need to be checked.

In NSE too a top level appointment was made without a screening process and by circumventing the provisions to avoid KMP (Key Management Personnel) regulations. It may be ioted that the Board of directors can act only based on the information provided to them and very often selective information is given and deliberations are not recorded appropriately.

These deficiencies are outside the ambit of prevailing statutory and internal audits and it is high time that the Management Audit is made compulsory in financial and allied services sectors to look into the functioning of senior and top management.

M Raghuraman

Mumbai

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