Letters

Unconventional cut

| Updated on August 09, 2019 Published on August 08, 2019

The 35 basis points repo rate cut by the RBI was suprising. The rubber is stretched to the optimum. The economic slowdown is pronounced and hence the concerns expressed on the growth front are obvious and understandable. The transmission of the policy rate cut by banks needs to be closely watched as this holds the key to boosting growth.

Srinivasan Umashankar

Nagpur

The right move

This refers to the editorial ‘Dangerous move’ (August 7), which has listed the likelihood of various possibilities of political shifts and consequent instabilities occurring due to the abrogation of Article 370 which conferred special status to Jammu and Kashmir. One important point is that the State, in spite of being part of the country in terms of administrative processes, continues to be a target of infiltrators and terrorists who are hard to eliminate due to the help they get from the Pakistan army and the ISI. Total integration with the country through strong political and administrative steps would help the people in the State enjoy the benefits of complete citizenship. The step taken by the Centre was a much-needed one.

TR Anandan

Coimbatore

Revive the auto sector

Apropos the news report ‘Auto industry to FM: Bring down GST, raise depreciation rate’ (August 8), the reduction of GST will surely increase the sale of passenger cars, which is an essential factor to revive the sluggish economy. Passenger vehicle sales in April-June 2019 plummeted by 18.42 per cent over the same period last year. The economy is grappling with, among others, rising unemployment, weak consumer sentiment and decline in manufacturing growth, especially in sectors such as real estate and automobiles. Many prominent voices, however, deny that the economy is slowing down.

Among the numbers that cannot be disputed, however, are the plummeting figures for vehicle sales — passenger cars, commercial vehicles and two-wheelers. Car sales have dropped by 22 per cent over last year. Unsold inventories are increasing by the day. A staggering 300 vehicle dealerships have downed their shutters.

The motor car is a dipstick for the Indian economy. In short, when the wheels of the automotive industry turn,the Indian economy moves around. The government cannot afford to let this sector slide, with the prospect of mammoth layoffs adding to the ranks of the unemployed.

Jitendra G Kothari

Mumbai

 

Pushing CSR

This refers to ‘The long arm of the new CSR law’ (August 8). By seeking to appropriate unspent CSR amounts, the government is going against the whole purpose of CSR — it cannot be forcefully implemented.

We need to accept that each and every entrepreneur cannot be a Ratan Tata, Azeem Premji or Narayana Murthy, who are large-hearted and ready to contribute to social causes.

The government must encourage Indian Inc to be more sensitive towards the needs of society. The government can give suggestions to companies on what all CSR activities they can involve themselves in and around the area they are located.

Ultimately, the objective should be to have optimum utilisation of CSR money.

Bal Govind

Noida

Pakistan scores a self-goal

With reference to ‘Pak expels Indian envoy, to suspend bilateral trade’ (August 8), Pakistan’s hasty and mindless act of expelling the Indian High Commissioner Ajay Bisaria, not sending its high commissioner-designate to New Delhi, and suspending bilateral trade may eventually prove to be a self-goal for it. Further, its wild threats of taking this matter to the UN and UNSC may also not come to its immediate rescue as it has no locus standi to poke its nose in India’s internal matters. Anyway, we have to be watchful about Pakistan's nefarious designs.

However, it was intriguing to learn that the Donald Trump administration has pointed out that the government did not consult or inform the US before moving to revoke Jammu and Kashmir’s special constitutional status.

S Kumar

New Delhi

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Published on August 08, 2019
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