Letters to the editor dated January 11, 2021

This refers to ‘US Treasury and its voodoo economics’ (January 11). It is purely judgemental on the part of US to brand certain countries as “currency manipulators” based on criteria which is one-sided. In the case of India, the foreign exchange intervention resorted to by the RBI was mainly on account of fund inflows into capital account, which were mainly due to the policies pursued by the US Fed to prop up the pandemic-hit US economy, leading to rate cuts.

Sustained cuts in the US Fed rate, quantitative easing and similar such measures have led to interest rates coming down to 0-0.25 per cent, making emerging markets like India attractive to foreign investments. To protect the domestic economy, central banks of developing countries are forced to absorb the sudden inflows to maintain equilibrium in the economy which cannot be termed as unfair currency practices. Probably, the US regulators too are aware of this fact and hence taken only merchandise trade for evaluation. Therefore, for countries like the US, instead of looking externally, concentrating on internal policy measures will do more good to their economy in the long run.

Chennai

It refers to ‘NPA vigil has improved corporate culture’ (January 11). Thanks to the advent of technology, gleanings from the NPA experience across sectors and investigations, lenders have learnt their lessons well.

And it is heartening to learn that key financial ratios of India Inc have improved in the last decade or so, which goes to show that much-needed discipline has become part of corporate DNA. And if most of the corporates have not opted for restructuring offered by the RBI during Covid, it is a testimony of their belief that they can handle their finances amidst the economic crisis.

Noida

As expected, the latest government-farmer talks reportedly made no headway. Indian agriculture has come of age since the 1960s in terms of self-sufficiency at least by quantity. But this has come about at a cost — to the taxpayer in terms of subsidised inputs, government purchase of overproduction at assured prices, and tax-free agri income; to the environment by endangering water security, GHG loads, and poor air quality; and to the economy by distorted cropping choice.

We must now focus on growing more nutritious, less water-intensive, and environment-friendly foods rather than just wheat and rice; improving farm productivity by measuring output per unit of water, power and fertiliser consumed; and doing away with distorting pricing. This could be the making of another green revolution.

Pune

This is with reference to ‘Silver linings’ (January 11). Indeed, the Indian economy has suffered its worst slump with GDP contracting by 23.9 per cent as the Covid-19 lockdowns scaled down consumer demand and investment.

The country must consider the shape of the next round of vital reforms which could pave the way for sustained growth in the post-Covid era.

The upcoming Budget must make provisions to boost government expenditure and focus on the infrastructure, manufacturing, real estate and services sectors.

Sivakasi

Large-scale student participation anticipated in the upcoming board exams has accentuated the need to vaccinate the youngsters against the mutating-virus at the earliest. The efficacy of learning via virtual mode, for the best part of the academic-year, is expected to undergo a thorough test for the first time.

Objective-type online-tests held by schools with little or no invigilation can hardly be a substitute for the classroom experience. It is important that schools organise pre-board exams at a physical facility/location, sooner rather than later.

New Delhi

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