Letters

All that glitters

| Updated on August 01, 2014 Published on August 01, 2014

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This refers to “Curb this appetite for gold” (August 1) by Prakash Chander. India, which is running an excessive CAD, cannot afford to maintain too much gold as, after all, the same reserve has to be used for balance of payment and its conversion may not be profitable every time.

Hence, holding foreign currency resident (FCR) deposits in gold does not augur well now. The Government recently introduced inflation-indexed bonds, but they have not gained in popularity as the Government can’t keep paying out amounts that are the outcome of short supply of commodities.

Once the economy returns to normal, prices will moderate and, hence, the demand for gold will wane. Till then, the Government can maintain 10 per cent duty to keep gold imports under check.

RK Arya



Faridabad

I don’t think banning gold jewellery advertisements is a solution to curb gold purchases. Neither will a ban on sale of gold jewellery of more than 18 carats. Such bans may only encourage smuggling and illegal ways and means of obtaining the yellow metal.

While FCR deposits sound good, the scheme has to be marketed better to encourage people to choose this option.

As the article rightly points out, with the demography heavily skewed towards young people, and as long as the trend of marriages remains unchanged, gold consumption will only increase, irrespective of price fluctuations.

Bal Govind

Noida

Consumer confidence

This is with reference to the report “Consumer confidence is back” (August 1). A global survey of consumer confidence indicates that Indian consumer confidence is rising. Amid a paucity of resourceful jobs given the corporate slowdown, there may be little optimism for consumer spending.

The lack of adequate investment, flaws in execution of infrastructure projects and a poor monsoon are key factors that decide consumer optimism. Such a perceived rise in consumer confidence may well be only on paper.

NR Nagarajan

Sivakasi

A curious turn

This refers to the report “Opposition wants fresh scrutiny of Insurance Bill” (August 1). In the changed political scenario, this decade-old issue is taking a curious turn, but the debate is ignoring the performance of the insurance industry a decade after it was opened up.

The important factors, such as how far the private insurance industry has penetrated the country with its organisation, personnel, procedures and products to spread the message of insurance, are likely to be neglected, especially when strong emphasis is being placed by this government on infrastructure development, where insurance funds play a crucial part.

S Subramanyan

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Natwar book row

Congress veteran Natwar Singh’s revelations have certainly excited comment.

Nobody disbelieves Rahul Gandhi could have played a part in dissuading Sonia Gandhi from taking up the job of Prime Minister in 2004 for fear that she too, like his grandmother and his father, might be assassinated.

But it is gratuitous to make it appear that Rahul Gandhi’s adamant opposition to her becoming the Prime Minister was in conflict with the claim that Sonia Gandhitook the decision of her own volition listening to her ‘inner voice”.

No doubt, her renunciation of power in accordance with great Indian traditions enhanced her stature and enabled her to ride the crest of the UPA rule.

G David Milton

Kanyakumari

Corporate disclosure

This refers to the article “Out with it” by Mohan R Lavi (August 1). The recent revelations on related-party transactions carried out by some large corporates will dent the image of Corporate India in terms of corporate governance and affect investor sentiment.

There is a lot that needs to be done on corporate governance and this is the right time to begin the debate right now.

CR Arun

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Published on August 01, 2014
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