Letters to the editor dated July 7, 2020

This refers to ‘Falling capex, rising Chinese imports’ (July 7). The article has rightly highlighted the need to diversify our manufacturing sector, and reduce dependence on Chinese imports. In the post-corona period, the world will not rely on China alone, so looking for alternative sources is a viable option. The ‘Make in India’ initiative launched in 2014 held much promise for FDI in manufacturing, but data suggest that it is the services sector which has been sought after by foreign investors.

MSMEs, which cater to much of the unorganised labour force, can boost manufacturing and at the same time create jobs. But successive governments have turned a blind eye to their needs such as timely availability of credit on negotiable terms and conditions.

The recent border stand-off has forced India to rethink and revisit the trade and economic prospects in a nuanced way. If India wants to compete with the world, it needs to strengthen its primary, secondary, and tertiary sectors.

Over-dependence on any single sector could prove disastrous. Ease of doing business has turned out to be a fallacy. Policies should be practical, predictable and transparent. Reducing imports from China in a phased manner is one thing, but Atmanirbhar Bharat calls for reduced dependence on the rest of the world too, if India wants to be self-reliant and economically sound. That is easier said than done.

Nainital, Uttarakhand

This refers to ‘Why do corporate frauds happen’ (July 7). History shows that frauds mostly happen with the connivance and/or cognisance of the five fiduciary functionaries, namely, founders-cum-promoters, resource (financial) providers including rating agencies, accountants (both internal and external auditors), user interface, and (board of) directors.

Governance gap is cited to be the prime risk to business continuity. Financial stability of the entity and capital safety of the investors are the apparent outcomes of good governance that finally prevent fraud and promote stakeholders’ satisfaction and reputational reliability.

Professionalism, that’s often heard of, shouldn’t just be a lip service but be shown/seen in every action of the board, CEO and that of all company executives as well as other stakeholders.

Gurgaon, Haryana

Weakness in corporate structure is exploited by those who lack personal and professional integrity. This is further accentuated when the individuals suffer from “non-shareable financial problem” (first driver of fraudulent behaviour) and there is structural weakness in administration, which ensures little chance of getting caught by the law-enforcing authorities in committing the fraud (extension of third driver).

This points to the need for selecting independent directors, laying greater stress on their antecedents and strength of character. The auditors being the instrument of ensuring honest business dealings should also be highly ethical.

Pune

With reference to ‘Railways does away with prior experience clause for private train bidders’ (July 7), the reported fact that the corporate players keen to run the first batch of private trains no longer need to have prior experience in running trains, railways, airport, ports, hotels, airlines, shipping and travel and tourism sectors, according to the revised qualifying bids released by the Indian Railways on July 1, certainly raise several eyebrows.

One just shudders to imagine the rationale behind the Railway Ministry’s doing away with such a key qualifying requirement that was part of a January 2020 draft document seeking bids therefor. How could the operations of various targeted trains genuinely be handed over to some 'inexperienced/raw' hands?

The moot question obviously arises here: What could be the government’s compulsions in taking recourse to such an imprudent move and to whom the government thereby wishes to oblige? Where are we headed to?

Bengaluru

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