This refers to ‘Debt recovery: Back to square one for RBI’. Jet Airways is the best example of how striking down of RBI’s February 12 circular has created more confusion. True, for some sectors like power a one-size-fits-all approach will not work. But the fact is that IBC (Insolvency and Bankruptcy Code) is the best thing which could have happened for bad asset resolution and recovery. Yes, there is a scope for fine-tuning to make it more pragmatic and a better tool for bad debt recovery. What the RBI needs to do is to reach out to all stakeholders — banks, companies and creditors — to ensure that a pragmatic solution acceptable to all the players is arrived at in a a time-bound manner. This will help banks recover their money and start lending fresh without any fear. Time is of real essence here.
Bal Govind
Noida
Iran sanctions
As expected, the US took a decision to pull the plug on all its waivers that it had hitherto granted as a short-term relief to friendly-nations such as India, South Korea and Japan on oil sanctions against Iran. With waivers now coming to an end, India had a fewer options than to leverage its improved relationship with the UAE and Saudi Arabia to negotiate long term energy alternatives.
While India had successfully navigated the crises of different hues covering Iran through innovative and prudent diplomacy in the past, the crisis now unfolding in the Gulf, especially after the advent of the Trump administration, doesn’t seem to afford us room to adopt strategic hedging.
It should be noted that Trump’s intent to effect a regime change in Iran through crippling economic sanctions is retrograde for it has heightened the possibility of a further surge in oil prices in the international market besides putting brakes on global economic recovery.
M Jeyaram
Sholavandan, TN
Oil turmoil
Elevated oil prices had been co-terminus with a surge in global economy and trade. For over four decades now, the fortunes of the global economy have been linked to oil demand and pricing.
Energy-related sectors carry trillions of dollars in investments and a liquid gold-led economy deflates with a fall in crude prices. The post 2008 global crisis and the resultant steep plunge in Brent crude thereof saw some $750 billion worth investments in the oil sector get stranded.
Oil exporting nations were hit in the absence of growth-led demand elsewhere. The fact is that the subdued oil market has caused far more economic deceleration world over than higher crude price. Unfortunately, India has done little all these decades to reduce its dependence on crude imports.
R Narayanan
Navi Mumbai
Promote indigenous products
This refers to ‘Future of Creative India lies in its past’ (April 4). We should encourage youngsters to become entrepreneurs by promoting handicrafts, handloom and other indigenous products. Nations like Japan and Korea have become prosperous because of their people’s patriotism.
Many a times we observe that we prefer to buy cheap foreign goods rather than those manufactured in India. Let us not forget that people play a vital role in a country’s development and economic growth. We have to change our mindset and be open to buying goods produced in India even if they are costlier. For instance, buying sarees and dress materials from handloom stores will help sustain the livelihood of weaver families. Social tourism can help popularise handloom and indigenous products.
State tourism departments should promote such products. Local people, especially experts and intellectuals residing at places of tourist interest, should get involved in giving suggestions to help promote the art, culture, and cuisines of the place. It should not be left entirely to the government to give a fillip to the tourism sector.
Finally, good connectivity between tourist centres and cities, towns and villages through improved rail and road transport will go a long way in boosting our traditional products.
Veena Shenoy
Thane
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