RBI faces herculean task
This refers to ‘RBI managing liquidity to steer inflation to its 4% target and supporting growth’ (September 2). RBI Governor Shaktikanta Das cautioning that the expected moderation in headline (retail) inflation during the second quarter of 2024-25 is likely to reverse in the third quarter ought to be taken due note of by all stakeholders. No wonder the RBI is reportedly focusing on managing liquidity in the banking system largely aimed at steering inflation towards a sustainable 4 per cent and supporting economic growth.
The weather-centric food inflation continues to be the main stumbling block towards the central bank sustainably achieving its 4 per cent targeted rate of inflation.
SK Gupta
New Delhi
Direct sowing of rice
This refers to Telangana, AP farmers opting for direct sowing of rice to tackle labour scarcity, costs. Although direct sowing of rice (DSR) offers interim relief, one has to look at its long term disadvantages, especially with respect to the economics. Madagascar or SRI method of machine planting has many advantages like low input cost, high yield, huge water savings, effective weed control and much lower dependence on labour. Governments must incentivise machine planting instead of encouraging DSR in the initial stages itself, by educating paddy farmers.
Rajiv Magal
Halekere Village, Karnataka
Promoting job creation
‘Government’s role in job creation’ (September 2), by designing and implementing conducive policies, is not only crucial but also essential. While the government’s role in creating jobs has diminished significantly with the dilution of public sector, its ability to keep making policies in tune with the fast paced technological innovation is of paramount importance in job creation. We have already seen how many occupations prior to the advent of IT have already disappeared. It is also true that newer technologies such as AI, Machine Learning, etc., are also creating new jobs, but requiring an entirely new skill-sets. The government needs to make skill development an integral part of the curriculum in educational institutions and keep updating the same in tune with the latest advances in technology. Also, it should design policies that encourage the upskilling of the existing labour force.
Kosaraju Chandramouli
Hyderabad
Infrastructure spending
This refers to ‘All roads lead to machinery makers’ (September 2). In economics, investment is defined as an addition to the stock of capital. Infrastructure development in India has given a fillip to the machinery industry, leading to large-scale employment of labour. This apart, it enhances consumption as well as export demand which in turn leads to more investments, employment, income and output. The government should continue to spend on supporting infrastructure that help optimise the welfare of the people as well as boost economic growth.
S Ramakrishnasayee
Chennai