A regressive step

In a major back down, Prime Minister Narendra Modi announced the repeal of three farm laws. The farm laws were opposed by the farmers belonging to the Punjab, Haryana and Western UP which accounts for a small fraction of the farmers in the country. These three laws were brought in for the welfare of the farmers and expected to give income security to the small farmers. Also, for years, these reforms were being demanded by farmers and economists. But, the repeal of these laws is a regressive step as Prime Minister himself conceded that government couldn’t explain and convince the farmers’ of their efficacy. It is clear that the government bowed down to the maximal demand of the protesters.

It is also distressing, a government with an overwhelming legislative mandate failed to implement the much needed reform. However, the climb down should be seen in the context of upcoming crucial assembly elections in the five northern States whose outcome matters for BJP in 2024 general elections. When electoral victory becomes sole objective to the political parties, crucial reforms take a back seat.

N Sadhasiva Reddy


The repeal of the contentious farm laws today brings down the curtain not on the play but only signals an intermission. The pandemic had already damaged the government’s credibility. The plunge in the economy and now the ominous spectre of inflation have added to the popular disaffection with the Centre. But it is perhaps the record of roughshod governance of nation’s largest State that had cast a shadow on the PM’s image. Clearly the mounting odds of the BJP at the hustings in UP, have forced the government to cease battle with farmers. However, UP elections will be judged by its electorate solely on the scorecard of the State government. But then a clueless and divided Opposition could snatch defeat from the jaws of victory.

R Narayanan

Navi Mumbai

Paytm debut blues

The disastrous debut of Paytm on the bourses was not unexpected. However a 27 per cent slide was not expected. It is time that investors stopped applying for loss making IPO’s offered at unrealistic prices. SEBI would do well to fix certain parameters beyond which IPOs cannot be priced.

The high visibility of Paytm was responsible for many investors putting their money into the company and it certainly seems that its share prices will not reach the IPO level in the near future, burning a big hole in the pockets of small investors. Hopefully, those who have lost money will have learnt their lesson.

Anthony Henriques


Crypto worries

This refers to “All that is dubious about crypto currencies” ( November 19). In a well regulated economy multiple factors like inflation, interest rates, balance of payments etc. serve as determining factors for fixing exchange rate between currencies. The very fact that crypto currency is a medium of exchange using encryption techniques to get converted into monetary units proves that there is lack of transparency and its existence is purely based on exploitation of digital technology.

It thrives on demand and supply for fixing exchange rates without being backed by any underlying asset and without involving any economic factors. The fact that they are unregulated in India leads to denial of any legal remedy to the investors. Lack of transparency in its operations leads to money launderers like drug traffickers and terrorist financiers using it as a tool to conceal their source of income. In the present form, floating of crypto currency exploits those who want to get rich quick. The unregulated growth of cryptocurrency will make monetary and fiscal policies ineffective hitting growth in the long run.

Srinivasan Velamur