Apropos of your edit ‘RBI vs GDP’ (February 4), faced with interminable and uneven patches in the global economic recovery for over two years now, RBI has been compelled to stay with a far larger canvas. As a result,it has not been able to attend to the detailing of the domestic economy to the level it would have desired. The new government on the other hand, with its enthusiastic palette, is striving to ink its theme of growth into a larger picture. This dichotomy is likely to stay for quite a while. Though the SLR is now down to 21.5, banks continue at a much higher 25-27, reflecting a reluctance to lend. That is the ground reality. The discomfiting level of bank NPAs—PNB is a case in point—uncertain investment climate, a bewildering plunge in crude price, all create an economic haze. The government would have liked positive cues from RBI on the eve of the Budget but then each is working on separate canvases. With the euro economy struggling, fresh stimulus from the ECB could flood liquidity across economies and with China winding down, it would make trade sluggish. RBI has its hands full and may not be able to help out domestically in the ensuing budget and beyond. The government has a lonely path to tread.
Apropos of your edit ‘Trust thrust’ (February 4), does the Modi-led government really have everybody’s trust. In the general elections, only a third of the voters cast their vote in the favour of the BJP. So, in fact, two-thirds of the voters don’t want to go with the BJP. It is well-known that the pro-corporate agenda of this government will see many so-called reforms come into effect. Not all of these will be to the benefit of the people. It is newspapers like yours that should be championing the people, not the corporates.
Prahlad Bhasin, Mumbai
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