It appears the Russian suggestion that the Syrian government give over control of its chemical weapons arsenal to international supervision as a way of staving off military action by the US is likely to be accepted by Syria. This will bring great relief to Syria and the world. Crude oil prices may not rise. With the rupee ruling at 64.25, there can be a turnaround if we manage to keep up the trend.
A. Jacob Sahayam
The article “The elephant experts didn't see” ( Business Line , September 6) cites figures to show how the huge import of capital goods over two UPA terms have contributed to the current economic crisis and argues that imports have devastated manufacture.
We have been reading in these columns that the present large CAD is mainly on the corporate account and not government debt. So it is not clear why corporates would go in for heavy capital goods imports such that their own manufactures are severely hit.
Thanks to the large-scale import of power-generating equipment over the last five years, some 55,000 MW was added over the Eleventh Plan.
About two-thirds of this was by state and central government undertakings. Despite this addition, there were power shortages mainly because of fuel shortage. The power shortage would have had a much more damaging impact on India’s manufacture than the import of capital goods.
As far as imports are concerned, indigenous manufacturers, including BHEL, lacked the capacity to supply the volumes the country added within the required time-frame. Exemption from import duties would have benefited consumers in a regulated tariff regime.
Microlevel, sector-wise analysis is needed before we make the generalisation that capital goods imports have devastated Indian manufacture.
S. K. N. Nair
Thiruvananthapuram
Wake up!
The people of Uttar Pradesh should not become victims of communal passions whipped up by politicians for political gain. S. Ramakrishnasayee
Ranipet