Letters to the Editor dated December 3, 2019

This refers to ‘The Paris Agreement has become a joke’ (December 3). Whatever steps the various countries propose to take, India has to be perpetually alert to the developments happening on the climate front. The vastness of the country and the huge population are factors are to be considered, and the Central and State governments should be prepared to tackle the consequences of climate change. The first step should be to create awareness among the common people on the subject and the steps they should take to protect themselves.

Coimbatore

This is with reference ‘Key flaws in Mudra scheme need to be fixed’ (December 3). In progressive and reasonably regulated economies the increasing trend of loan defaults are symptomatic of a combination of poor credit assessment/ lax recovery and a flagging economy. We must remember that demonetisation had put to grief the very same economic strata that the likes of Mudra was designed to cover.

Even at the inception of the scheme in 2014-15, former RBI Governor Raghuram Rajan had warned of ‘systemic credit risks’ and recommended a close review of Kisan Credit Cards, the Mudra scheme and the Credit Guarantee Scheme for MSMEs by SIDBI. Rajan had pointed that these easy loans would disrupt the credit market and credit culture.

The current problem of NPAs in small sector schemes arises not so much from lack of diligence in lending as due the refusal of the government to acknowledge in time the severe economic interruption caused by its monetary escapade of 2016 and subsequent lack of course correction, which it felt would be seen as weakness.

Navi Mumbai

This refers to ‘Economy needs Modi to reinvent himself, again’ (December 3). With 4.5 per cent GDP growth in the last quarter, it is virtually impossible to achieve the RBI’s targeted GDP rate of 6.1 per cent in the next two quarters. And it is not that the government has not been taken steps to address the economic slowdown. Corporate tax rate cuts, measures to help MSMEs and the real estate sector, among others, haven’t helped boost growth. So the government will have to take more concrete steps without delay. These include land and labour reforms, easing of the GST filing process and reposing trust in entrepreneurs.

Noida

This refers to ‘No proposal to reduce taxes on petrol, diesel: Central Government’ (December 3). Finance Minister Nirmala Sitharaman’s response to a Lok Sabha question on whether petrol and diesel would be brought under the ambit of the GST regime, did not come as a surprise at all. Rather than take a sympathetic view on the people’s long-pending demand to reduce excise and custom duties on petrol and diesel, she merely said no new taxes are being considered. Hats off to her for being so ‘considerate’ to the masses.

Panchkula, Haryana

Apropos ‘Corporate tax cut will make India a global manufacturing hub: FM’ (on thehindubusinessline.com ), it may be too late to come up with such an idea for achieving nation-wide growth as not much time is left for the current fiscal to come to a close. Needless to say, the nation’s corporate sector is currently suffering more on account of various uncertainties and mistrust of the the government, which has the grand plan of making India a $5 trillion economy by 2024.

For industrial tycoon Rahul Bajaj to make some categorical observations concerning the current status of India’s corporate sector in the august presence of the Home Minister Amit Shah and others reflect the dismal state of affairs. For sure, his deep concern and well-meaning views should not be brushed aside simply because the same do not fit into the government’s own scheme of things. In fact, it may be time for the government to have a relook at its extant vision aimed at achieving growth targets.

New Delhi

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