Letters

Letters to the editor dated September 9, 2021

| Updated on September 09, 2021

Managing the rupee

This refers to ‘The impossible task of taming the rupee’ (September 9). The RBI is facing the onerous task of managing the forex inflow in terms of putting it to maximum productive use and, at the same time, ensuring that inflation is kept under control so that the growth is not impacted. But the RBI increasing its forex kitty by absorbing the inflows has also its downside. Artificially keeping the value of rupee low inflates India’s oil import bill which constitutes about 80 per cent of total imports. Also, increasing the size of the balance sheet of the RBI with no corresponding investment opportunities with better returns leads to opportunity loss.

Due to low interest rates prevailing in the US and Euro zone, the return on foreign currency assets declined to 2.10 per cent in 2020-21 as compared with 2.65 per cent in 2019-20 and 2.79 per cent in 2018-19, as per RBI data. With dwindling returns and with US Fed officials actively debating on tapering the Fed’s monthly asset purchases, it will be a double whammy if the same materialises, which will put the balancing act pursued by the RBI under stress.

Hence apart from taking domestic factors into consideration for managing the economy, global developments too need to be factored in so that forex management is based on demand and supply of foreign currency. Also, frequent absorption of inflow beyond stipulated 2 per cent of GDP will lead to India being branded as a currency manipulator by world economies, especially the US.

Srinivasan Velamur

Chennai

Vacancies in courts

This has reference to the editorial ‘Order, order’ (September 9). Why should there be a confrontation between the Centre and the judiciary? If the increase in the pending cases before the courts and tribunals is due to unfilled posts of High Court judges, or tribunal members, efforts must be made to fill the vacancies. As regards the appointment of High Court judges, the existing selection system and procedures need to be reviewed.

For appointment of individuals as High Court judges, only practising advocates are considered at present. This calls for an immediate review. How much time does an intelligent individual require to know the court procedures? Why cannot there be a tough qualifying test for direct recruitment of High Court or District Court judges? Therefore, some out-of-the-box thinking is required in the matter of appointment of District Judges as also High Court judges.

Also, the implementation of legal and administration reforms to ensure faster disposal of pending cases need to be taken on a priority basis.

Narendra M Apte

Pune

PLI for textile sector

This refers to ‘Cabinet clears ₹10,863 crore PLI scheme for man-made textiles’ (September 9). This allocation will surely boost manufacturing of man-made fibres, garments and technical textiles. At a time when India’s share in global textile exports have declined and countries like Bangladesh and Thailand have grown at our expense, such a measure will lift the sector’s morale. The move will also create huge employment opportunities and give a boost to the whole value chain.

The best part of the scheme is that it aims to target companies in Tier 3 and 4 cities, which means youth from these cities stand to gain significantly. Since the benefits of this schemes are directly linked with the turnover target, companies should focus on achieving the desired turnover.

Bal Govind

Noida

Engaging with Afghanistan

Afghanistan has been thrown out of the frying pan into the fire by the US. It is prudent that India holds its counsel for the foreseeable future. The new Afghan government does not seem sustainable on account of the deadly cocktail of various hardcore militant factions within it. As predicted, the likelihood of civil war cannot be ruled out. The Taliban captured Afghanistan with lightning speed and is bound to collapse with the same speed, unfortunately though, the casualty shall be the hapless citizens of Afghanistan.

Deepak Singhal

Noida

Published on September 09, 2021

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