Letters to the editor dated Jan 14, 2020

This is with reference to ‘What role exports play in India’s growth acceleration?’ (January 14). Expansion in manufactured exports will make India among the fastest growing emerging markets. The manufacturing sector has played a key role in boosting India’s exports.

India’s value added oil product exports is a case in point. But in recent years the country’s export performance has been lacklustre, thanks to reduced competitiveness and the global trade war. Revival of demand and the resultant hike in consumption will help accelerate both domestic growth and exports.

Sivakasi

This refers to ‘CCI orders probe into deep-discounting by Amazon, Flipkart’ (January 14). The hue and cry being raised by CAIT about Amazon’s pricing is not going to solve the problems of brick-and-mortar stores. Even if Amazon and Flipkart price their products on par with that of physical stores, most of the customers may still prefer to buy from e-commerce sites because of other advantages such as wide choice, superior customer service, and customer-friendly return policy.

These are features that physical stores will find hard to replicate. Many of us still remember the hostile “goods once sold will not be taken back” message that used to be printed on bills in the days before the advent of e-commerce.

Chennai

This refers to the report on CPI inflation rising to 7.35% in December (January 14). In most of the economies, the bank deposit rates are generally two percentage points above the inflation rate. In India, this is seldom the case. The maximum deposit rate of scheduled banks is currently around 7 per cent, while inflation has overtaken this rate.

Thus the return is effectively negative. There are large sections of retired people who are not covered under any worthwhile pension scheme, and live on interest income alone.

Deposit rates that are not reasonably above inflation only add to their financial worries. This is an important aspect sadly lost sight of by the central bank and the banking community.

Thiruvanathapuram

This refers to ‘Modi-Shah government stands totally exposed: Sonia Gandhi at Opposition meeting’ (January 14). The Congress president averring that Prime Minister Narendra Modi and Home Minister Amit Shah have misled the people on the issue of CAA and NRC was not surprising as the accusations were on expected lines.

Curiously though, the Sonia Gandhi ‘sponsored’ meeting was attended by the leaders/representatives of 20 Opposition parties, but the DMK, BSP, SP, TMC and AAP were conspicuous by their absence. This should not be construed as any ordinary development. Moreover, the timing of her ‘organising’ yet another anti-BJP gathering raises eyebrows, more so when the Delhi Assembly elections are just round the corner.

Whether she would succeed in reclaiming a part of her party’s lost political ground here seems doubtful as AAP chief Arvind Kejriwal seems to be sitting pretty at this hour.

Bengaluru

This is with reference to ‘Agrarian distress and the way forward’ (January 14). We can solve many problems facing rural India by encouraging agricultural and allied activities and motivating youth to take up these activities. This should be done not through subsidies and freebies but by educating the rural people to take up agriculture as a profession/source of income.

The government should take the initiative by improving our agricultural universities and setting up more such universities and run them on the lines of the IIMs. As majority of the Indians live in rural areas, making our villages smart by providing good sanitation, infrastructure, roads and employment will help address the problem of migration of villagers to the already overcrowded cities.

Thane

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