Defiant China
Apropos ‘China in no mood to back down’ ( June 7), China talking down India internationally, and strengthening its position in the border areas, is no surprise given its belligerent posture with its neighbours in recent times. What else could explain India and China getting nowhere close to resolving their border dispute, even after 18 rounds of military talks?
China is currently engaged in tactically upgrading its civic (rail/road) and military infrastructure, close to various borders posts with India in Ladakh and elsewhere too. That Foreign Minister S Jaishankar never misses an opportunities to ‘expose’ China’s globally expansionary motives is hardly a surprise. However, India must be watchful of China’s game plan to ‘intrude’ into the Indian territory.
SK Gupta
New Delhi
Sustaining realty
This refers to the news report ‘Priority sector home loans see sharp moderation in FY23’ (June 7). The cost, credit limit and area classification based on population to consider housing loans as a priority sector advance of banks needs revision, as the cost of building materials and criteria metrics of other components have risen.
The repo rate hikes of 250 basis points have induced banks to raise the interest rate on housing loans, which is adversely affecting consumers falling under this segment. Besides, the elevated lending rate is causing stress in the servicing of the loan and will push up the delinquency rate.
Revised criteria are required to expand the number of beneficiaries to strengthen housing demand and to sustain the growth of the realty sector.
VSK Pillai
Changanacherry
MPC imperatives
The RBI has a number of issues to mull over on its policy stance to be adopted in its upcoming meeting. The Ukraine war, instead of abating is flaring up further. This is bad news for food inflation that is already high globally.
That said, the Saudis have now unilaterally announced cuts in oil production. Russia could soon follow suit to meet its war expenses and that can only fuel our inflation further.
The onset of monsoons is worryingly getting delayed. Notwithstanding our current comfortable grain stocks, food prices are likely to firm up soon.
Besides the huge trade imbalance with Russia, thanks to our rising oil imports, is weakening the rupee. Thus even a pause in key rates now may not adequately cover the complex mix of emanating contingencies.
R Narayanan
Navi Mumbai
Freebie worries
The five promises made by Congress during their campaign for the recent Karnataka assembly elections were a major factor in its victory.
The Congress now intends to use the same approach in other upcoming State elections.
Together, the guarantees or freebies may be able to provide coverage for the majority of Karnataka’s two-and-half crore families.
However, State governments which promises freebies must complement the assurances with the creation of work options, including self-employment, to ensure financial security for the beneficiaries. The best use of the assurances would be to aim for long-term financial sustainability rather than merely procuring votes .
Vijaykumar HK
Raichur, Karnataka
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