Apropos of Surjit S Bhalla's column “India's great inflation decline—a whodunit” (January 6), the sustained...
Behind falling inflation
Apropos of Surjit S Bhalla’s column “India’s great inflation decline—a whodunit” (January 6), the sustained lag in larger economies has enabled a bigger basket for domestic consumption. The down-trend in fuel prices is helping contain transport costs and an unsteady global economy takes away the charm from commodity speculation. These, in a nutshell, are the dampeners for Indian inflation. This scenario will continue till the US economy gathers momentum. The oil prices would then find higher levels and world trade would again touch the high pre-2007/08 figures. This gives us enough time to gear up manufacturing and set up an attractive exchange rate for the rupee for exports, but from a position of strength.
Apropos of the column “Will the real Narendra Modi surface again?” (January 1), it is indeed a pity that only afew in the government seem intent on reforms. But then some of the reforms proposed are outright privatisation models rather than any progressive easing of the sectors and this can be dangerous, especially given the government, despite its best efforts, fails to check corporate malpractices and oligopoly. So, while Modi is the eager reformist, he should also be a pragmatic one and not rush ahead blindly.