This refers to the Finance Minister’s interview (June 30), where she candidly addressed a wide range of questions on the economy.

While the oft-repeated assertion that India is the fastest-growing major economy is credible and noteworthy, it remains a necessary but not sufficient condition to claim economic supremacy across all dimensions. A key challenge lies in elevating the standard of living for India’s 1.4 billion people, which directly influences the country’s sovereign credit rating. The government rightly takes credit for introducing the IBC. However, against the stipulated resolution timeline of 270 days (including extension), actual resolution takes an average of 650 to 750 days, raising concerns over enforcement efficiency.

India’s performance in services exports has been commendable, but in manufacturing, there remains substantial scope for improvement. The MSME sector urgently needs a replacement for the now-discontinued Interest Equalisation Scheme (IES) to support its competitiveness, especially in exports.

Additionally, the quality of corporate governance in financial institutions must be significantly strengthened. State-level support for fiscal discipline is critical at this juncture.

Srinivasan Velamur

Chennai

Banks for diverse roles

The Finance Minister’s interview comprehensively encompasses all crucial issues of the economy. Banks besides consolidation await restructuring to cater to the credit needs of industry, MSMEs and start-ups.

Banks, apaert from being repositories of public money, are also stake holders in the country’s growth. Banks need to appoint eminent industrialists on their Boards and engage them at Branch levels.

Vinod Johri

New Delhi

Steel’s stealing march

This refers to “Steel as the backbone of a rising India” (June 29). Peter Drucker predicted in the 1950s that steelmaking was a decaying industry. It appeared to be so for India at the dawn of independence — it was virtually at the bottom in production.

Today it is the world’s second highest steel producer next to China with giants like the US, Germany and Japan left behind.

What is more heartening is that now its labour productivity also compares well at global level. It varies in the range of 300-1800 Tonnes of Crude Steel (TCS) per man per year from company to company as compared to the estimated around 330-2200 in steel companies abroad. Efforts should be made to narrow down the range by paying close attention to the companies with low productivity.

YG Chouksey

Pune

Published on June 30, 2025