Remittances: At what price?

The article ‘Remittance bonanza has shored up balance of payments’ (December 18) has well-detailed the structure of remittances from abroad and also on how it helps ease the balance of payments burden. A chunk of the remittances (out of the total of $65 billion) comes from the semi-skilled employees working in Gulf countries. Most workers in the Gulf, unlike the IT employees in North America, toil long hours under poor working conditions. Recently, VK Singh, Minister of State External Affairs, revealed in Parliament that a total of 28,523 Indians (NRIs) died in Gulf countries in the last four years. Hence, the important question: Should India gloat over receiving huge remittances, especially from the Gulf region? Though there is the ‘Pravasi Bharatiya Divas’ forum to deal with the issues faced by the Indian Diaspora, many NRIs are entangled in legal and labour-related problems abroad.

Cuddalore

Acknowledging the ‘constricted power of judicial review’, the Supreme Court pronounced a judgment dismissing the writ petitions against the Rafale fighter jet deal after a limited scrutiny. The court depended on the audit examination reportedly conducted by the Comptroller & Auditor General of India (CAG) to avoid its own conclusion on pricing. The court trusted the government’s claim of a price advantage in the purchase of 36 jets, and it believed the assertion of the ruling government that the audit institution had examined the price factor and tabled a report in Parliament on the Rafale deal, and the Public Accounts Committee had deliberated on it. It has now become a confessed faux paus, and the price advantage touted remained an artful statement based on undisclosed data. A cardinal issue that has to be looked into here is the Eurofighter Typhoon of the Eurofighter Jagdflugzeug GmbH, the other technically qualified fighter plane, lost out to the Dassault Aviation on pricing at the evaluation stage. In the changed context of the raised price of the Rafale jets, the price quoted for the Eurofighter Typoon had become relevant for assessing the comparative advantage.

At a time when India is emerging as a powerful economy, issues like artificial intelligence, mechanisation and loan waivers are perplexing for the common man, if not for the policy-makers. With elections round the corner, the expectation of every individual would be some fiscal sop or the other, and farm loan waivers occupy the drivers seat, the only powerful option for political parties. No doubt the farm sector is in distress, yet loan waivers could prove to be detrimental in the long run since they drive the hard working labour away from farming. The need of the hour is promotion and motivation and not mere appeasement.

Sakaleshpur, Karnataka

This is with reference to ‘5 states are home to 60% of start-ups’ (December 18). It is sad to note that only a few States are doing well on this front. Too much of government interference in any scheme results in failure. Prime Minister Modi’s ambitious ‘Start Up India, Stand up India’ scheme to boost entrepreneurship and create jobs is one such scheme. However, it will be successful if the government sticks to giving the required capital support, good infrastructure and other benefits.. There is no dearth of talent and ideas in India, but too much of government interference/babudom prevents our entrepreneurs from executing their ideas and creating jobs. India should learn from the Silicon Valley in the US, which is home to many of the world’s largest high-tech corporations, as well as thousands of start-ups. In Silicon Valley, risk-taking is encouraged and entrepreneurs are heroes. The US government practically has no role in the functioning of Silicon Valley. It funds basic research and provides education and infrastructure and does not come in the way of entrepreneurs. If we can follow the Silicon Valley model, our Prime Minister’s ambitious scheme will be a huge success.

Thane

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.