This refers to the editorial ‘Making the right calls’ (October 2). India’s telecom sector witnessed phenomenal growth in the past two decades. The industry has shown a compound annual grow rate of 19.6 per cent during 2007-17 and is projected to reach a revenue of ₹6.6 trillion by 2020. Rural telephone demand increased 30 per cent over the past five years.

That said, we are reportedly importing as much as 90 per cent of the telecom equipment from China, Finland, Sweden and the US piggy backing low or no import tariff. We have miserably failed to develop a local manufacturing hub for telecom equipment on account of policy paralysis and inaction.

The recent consultation paper of TRAI is an attempt to reverse the situation and make India a global hub for the manufacture telecom equipment. Local manufacturing can be nurtured only by providing incentives in the form of tax holidays to local manufactures as was given to the software industry.

Philip Sabu

Mannuthy, Kerala

Language blues

The statement of the official language department that core banking software of banks should be in Hindi and local languages is a big challenge to banks, which are already struggling to update software solutions. Starting from computerising standalone computers under ALPM (advanced ledger posting machines), banks migrated to TBA (total branch automation) and then to CBS (core banking solution).

The common software language used was English, aiming to make Indian banks attain global standards. With banks in India spread across linguistic areas, it will be difficult to transact business in Hindi. Software companies have gained substantially out of the compulsion to upgrade the software and statutory requirements like Basel norms. It will be prudent not to burden the banks with additional burden when they are struggling to hold their bottom line.

S Veeraraghavan

Madurai

Give relief

Finance Minister Arun Jaitley hinting that there was scope for lesser slabs under GST once there is an upturn in the economy is reassuring. Though the indirect tax burden is borne by all sections of the society, high tax rates have created a gaping hole in people’s pockets, particularly impacting those belonging to the financially weaker section.

The Government would also do well to bring down not just the number of slabs but also the tax rates and make life less complicated for taxpayers and the general public.

NJ Ravi Chander

Bengaluru

Improve infra

Suggestions to improve suburban services in Mumbai are welcome (‘Stampede in Mumbai’, October 2). Also, for better control, accountability and ease of administration, the Mumbai suburban system should be handed over to a separate corporation so the needs of millions of commuters could be met at the earliest. Or the suburban system could be handed over to private hands, which would hopefully help improve the service to commuters.

V Subramanian

Chennai

Money matters

The conundrum of the slowdown of the economy is causing intense worry to all concerned with keeping it in good shape. The RBI chief too is no exception. In this context, it has to be taken into account that the rate syndrome is a deciding factor and the festivals, one just passed and a very important one coming by the month-end, have their powerful impact on the commercial market.

A few days from now, purchases of all sorts of goods will keep the markets busy with money flowing into it and away from the pockets of citizens. Though in a way it creates good economic activity, it does cause problems to people especially to those with little or no means to enter markets. The RBI has to keep in mind these facts when considering the shape of the monetary policy to be unveiled in a few days. It is also an occasion quite suitable for taking stock of various sides of the economy and responses caused by them.

TR Anandan

Coimbatore

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

Related Topics
comment COMMENT NOW