Letters to the editor dated January 28, 2021

This refers to ‘How’s the view from atop Mount 50k?’ (January 28). The recent bull-run is not based on economic fundamentals but because of funds brought in by foreign investors. With the US in an aggressive quantitative-easing mode with bond yields at all-time lows, foreign investors are finding emerging economies like India attractive for investments.

But equally, statements made by central bank governors of leading economies like the US should be measured as any hasty views expressed may lead to sudden fluctuations in the market movements in developing economies, like the one on tapering tantrum made in 2013 after the 2008 credit crisis.

Ideally, for long-term stability of the market, factors like potential GDP growth, fiscal and monetary policies, concerns over inflation and deflation, industrial growth, etc., should be the influencing factors. As far as India is concerned, post Covid, with economic reforms expected to continue supported by monetary and fiscal policies, the market is expected to be vibrant with moderate growth, unlike the roller coaster year witnessed in 2020. The Budget holds the key for the trend the market would take in 2021-22.

Chennai

If our acumen could keep the economic traffic going using innovative digital bridges while the conventional ones are getting repaired, perhaps we might well leverage the same for our economic planning. And our markets seem to be as hopeful as they are prescient.

Dalal Street indices seem adamant to scale record heights, paradoxical though, given an economy still under duress of a pandemic. North Block needs to share this optimism.

The Finance Minister intends to herald 2021 with a “never before in 100 years” Budget.

Health and education will be the sectors of massive spend and fiscal limitations must not guile us to energetic taxing and recourse to cess, a colonial habit that spooks much needed capital flow to growth sectors.

The need is for reforms that facilitate a spurt in immediate and scalable employment levels. Given our demographics, this must come from manufacturing and infrastructure.

Navi Mumbai

Apropos the news report indicating that a law student has flagged the Supreme Court on the Red Fort event, it goes without saying that each and every true nationalist would fully support him. One wishes that no one who is found involved in creating such an unimaginable mayhem on our 72nd Republic Day escapes the dragnet of the law.

It’s now incumbent upon the Delhi Police to investigate the entire matter and file a foolproof case in the relevant court of law at the earliest.

New Delhi

Undoubtedly, protests are democracy’s oxygen. But there is enormous difference between peaceful and violent protests. One makes democracy stronger, whereas the other wrecks it.

Violence is like a termite in the roots of democracy. Whatever happened in the Capital on the day of celebrating the Constitution is a real embarrassment to the nation and a direct assault on the very foundation of the Republic.

Hyderabad

This refers to ‘For many farmers it’s a Hobson’s choice’ (January 28). As part and parcel of farm reforms, good storage facilities should be made available to the farmers. These are especially required when there is bumper crop. Due to lack of modern storage facilities, many a time our farmers are forced to sell their produce to middlemen at cheaper rates.

Also, because of the absence of good roads in villages, farmers are unable to take their produce to markets that fetch a better prices. Hence building good roads to facilitate smooth movement of farm produce must be prioritised. A good transport system plays a vital role in curbing food inflation.

Thane

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