The editorial “Economics of IT” ( Business Line , April 18) made some excellent points. I disagree with the author's view to import talent from foreign countries.

It would perhaps be a better option for Indian companies to start subsidiaries in the US and open centres in remote places, employing domestic high-school graduates rather than reducing their market share in US. The size, experience, knowledge and capabilities of Indian companies would always be a greater advantage. High-school students with good aptitude are sufficient for developing commercial software applications. With proper training, the American high-school graduates in remote places would be ready to work in less than half the salary of an Indian IT worker on H1B Visa in the US.

So, far the Indian human capital helped the developed nations to support software and hardware and emergence of internet.

If Indian companies open centres in the US, employing local Americans, more US companies that hesitated so far to outsource their IT work would begin to do so now. This model, besides providing long-term returns, can withstand any political or economic turmoil.

Anand Thiagarajan

Michigan, US

Teaser loan

This refers to “State Bank scraps teaser home loan scheme” ( Business Line , April 21). Regulations should not be a hindrance to innovations. SBI's product helped many people realise their dreams.

Banking industry need to come up with such innovations to change the lives of masses.

Without financial innovation, the RBI's dream of financial inclusion would not be achieved.

Those who used this so called “teaser loan” are predominantly first generation owners of house and proper tax payers.

Home loans from salaried class may still increase, even if it is charged normal rates. Hence, the problem of inflation is very less correlated with these so called “teaser loan”.

It is actually the black money economy which needs to be targeted to bring down the inflation.

Sivaraj S

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