This refers to the Editorial ‘Chinks in China’s Zero- Covid-19 policy’. Rather than take pragmatic measures to curb Covid’s spread, the Chinese government has ushered in a stringent zero - Covid-19 policy to the detriment of the economic and social life of its citizens.
While this policy has enabled the Chinese administration to reduce the rate of mortality, its debilitating repercussions on lives and livelihoods of people cannot be overlooked.
No doubt, the present public resentment against the crippling lockdowns has emerged as a big challenge to Chinese President Xi Jinping, who now needs to display pragmatism and listen to the growing chorus of his citizens in favour of relaxation of stringent anti-Covid-19 measures with greater empathy and address their concerns seriously.
M Jeyaram
Sholavandan (TN)
Ball in RBI’s court
Apropos ‘RBI’s MPC may dial down on rate hikes’ ( December 5), the Monetary Policy Committee may slow down the pace of rate hikes to 25-35 basis points to deal with the twin challenge of inflation and growth.
While economists have expressed divergent views on the MPC’s likely stance, the fact of the matter is that there are no easy answers at least for the time being.
The central bank’s continued reliance on its ‘tight money policy’ stance has thus far failed to bring any solace to the hapless retail consumers (lower strata of society) as the CPI level is still at around 7 per cent. Sadly, they have no one to fall back upon even in such a critical times.
Kumar Gupt
Panchkula (Haryana)
A long journey ahead
This refers to ‘GST rejig likely only after 2024 LS polls’ (December 5). It was intriguing to learn that the rationalisation of the Goods and Services Taxes (GST) is likely to be put off after the 2024 elections. It was all the more strange that a senior government official said that the “GST rates are critical not just from inflation point of view, but also it is highly politically sensitive issue. We may see complete overhaul of GST rates once Lok Sabha election got over in 2024.” But, Why mix politics with economics?
Retail inflation level is currently hovering around 7 per cent, much above the RBI’s comfort level. The RBI Governor had earlier stated that it may take two more years for ‘achieving’ its median rate of 4 per cent. Such a worrisome scenario does not augur well for the people’s welfare.
SK Gupta
New Delhi
Incentives, disincentives
This refers to the report ‘Govt mulls PLI scheme for toys with likely ₹3,500-crore outlay’ (December 5). This is a welcome initiative.
An appropriate mix of incentives and disincentives will improve industry’s productivity.
While incentives should be given to sectors on the basis of domestic resources and skills, disincentives could reduce imports and industries which are not environment friendly.
Incentives could be in the form of direct subsidy support or through concessions and relaxations in taxation or exemptions.
MG Warrier
Mumbai