Letters to the editor dated January 29, 2020

With reference to the editorial ‘Boosting consumption’ (January 29). Finance Minister Nirmala Sitharaman has been been dealing wqith the difficult task of reviving the sagging economy for quite sometime. Government expenditure and private consumption are the salient avenues for this. The Indian economy has been growing at below 5 per cent, marking six consecutive quarters of slow growth. Constrictions are from both the supply and the demand side. A case in point: fast moving consumer goods, a traditional bellwether for the economy, are moving at a snail’s pace — sales in the September 2019 quarter increased by just 2 per cent compared to 16 per cent a year ago. Elsewhere, both private and public investments plunged to a 15-year low in the quarter ended June 2019. The target to become a $5-trillion economy by 2024 seems like a mirage.

Also, lower revenue collections make it difficult for the government to infuse cash to jump-start the economy. Hence, this Budget will be a ‘do or die’ one for this government. It must provide a vision and a growth narrative as to how it intends to make India a globally competitive economy as well as a roadmap to pull the economy out of morass.

Mumbai

With reference to ‘Boosting Consumption’ (January 29). The timely measures suggested for improving consumption levels would definitely augment the reversal of the present slowdown in the economy. There is no guarantee that, in the absence of a stable financial and capital market atmosphere, any surplus cash netted from tax cuts would really flow back into the system. Public and private investments in the infrastructure, manufacturing and service sectors would throw open more business and employment opportunities. With imports of electronic products being the highest next to crude oil, more impetus to be given for domestic manufacturing in the sector and the working capital needs of the MSMEs must be addressed on priority.

Bengaluru

This refers to ‘What is the aam aadmi hoping for in this Budget?’ (January 29). There are many reasons why neither the common man nor the government takes the Budget accords seriously. First, mini-budgets are rolled out and rolled back through the year. Second, many companies are not under the remit of the government and keep revising the prices and fares, like recent spike in air fares and telecom. Third, indirect taxes/GST have become a dynamic phenomenon. .

After blunders such as the demonetisation, the aam aadmi ’s only aspiration is that government maintains status quo in its financial polices and does not indulge in any misadventure again.

Chennai

This refers to the report “ Tata goes electric with Nexon EV, at a starting price of ₹13.99 lakh’ (January 29). The report shows a welcome trend in the automobile industry for several reasons. As stated by the Chairman of the company, it signifies “an imperative for addressing pollution and generating job opportunities”. It would also considerably reduce oil consumption at a time when oil prices are on rise. In this context, the issue of power availability also requires attention.

It is necessary that the government focusses on the development of the EV sector and initiates steps to make available the required infrastructure quickly.

Coimbatore

It is commendable that the Supreme Court has given permission to the National Tiger Conservation Authority to relocate the African cheetah to Madhya Pradesh. If India’s ambitious plan works out, it will be a great achievement for the country. The strategy will help conserve the endangered species and restore ecological balance. However, there are many obstacles in the path. Collecting the funds needed for the project is a big challenge; ₹200 crore is required to relocate people from 90-odd villages from the Nauradehi Wildlife Sanctuary. Around ₹25-30 crore is needed to build an enclosure. The habitat must be conducive to the cheetah’s survival.

Kollam, Kerala

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