Letters to the Editor dated June 22, 2022

Boosting the capital market

Apropos ‘Time for caution’ (June 22), while the involvement of retail investors in the capital market is witnessing an upswing, it is important to protect their interests by improving their financial literacy . The steep rise in the Fed rate and the persisting war have affected both the global and domestic capital markets.

Despite the good performance of India Inc, the price of equities in the secondary market has declined sharply due to the massive withdrawal of funds by Foreign Portfolio Investors. Consequently, it has created intense volatility in the market. Retail investors have suffered hefty losses, and gradual conversion of their equity investments into other forms of financial assets is happening.

The healthy sentiment and momentum in the stock market, which were responsible for the success of many large IPOs, are disappearing. This is worrisome since the players in the financial market are among the main pillars of the economy. An enabling business environment is key to attracting capital inflows.

The government must control the cost of various inputs that go into manufacturing and curtail the imports of raw materials. Also, it should try to reduce the trade and current account deficits, else it will drive away foreign investors.

VSK Pillai

Changanacherry, Kerala

Air India’s outlook

This refers to ‘Air India under Tatas can carve out huge share of global markets too’ (June 22). Even when countries in the Middle East were operating successful airline services, India was struggling hard to make its presence in the global aviation industry.

After decades of operations, Air India has ended up in huge debts. Political interferences, corruption, trade unionism, ageing fleet, strikes and incompetent managements ensured the decline of Air India.

With the acquisition of the airline by the Tatas, one hopes it will be more professionally managed and the services will improve. A successful airline can create thousands of jobs besides making substantial contributions to the local economy. Hoping that a resurrected Air India will attain new heights in the aviation industry soon.

Girish R Edathitta

Pathanamthitta, Kerala

Monsoon prediction unreliable

This refers to ‘Monsoon bounty over N-E helps ease rainfall deficit to 2%’ (June 22). With the crucial first month of the monsoon coming to a close soon and the rainfall still in deficit, the farmers are a worried lot.

The IMD prediction of “103% of average monsoon” has gone entirely haywire and has badly affected kharif activities. Small and medium farmers could face further hurdles if there is sudden downpour in the months of July or August — and this cannot be ruled out.

The Ministries concerned and the NITI Aayog must extrapolate the plausible effects of deficit rainfall and rescue the farmers without making them wait endlessly as has been the convention. PMFBY makes its relevance felt in such situations, and the government must extend it to all the farmers by default.

Rajeev Magal

Halekere Village, Karnataka

Presidential elections

By nominating Droupadi Murmu, a prominent tribal leader and former governor of Jharkhand, as its candidate for the upcoming presidential polls, the BJP-led NDA government has literally taken the wind out of sails of the Opposition, which earlier announced former finance minister Yashwant Sinha as its presidential candidate.

If the dalit outreach of the BJP saw Ramnath Govind from the Hindi heartland getting elected to the office of President in 2017, its present nominee Murmu explains the party’s larger game-plan of taking every marginalised community to its fold to further expand and sustain its electoral footprints in the country.

The numbers in the electoral college is stacked in favour of Murmu, with parties like Biju Janata Dal and YSR Congress likely to throw their weight behind her candidature. She in all likelihood will become the first tribal woman to occupy the highest office of the country.

M Jeyaram

Sholavandan, TN

Published on

June 22, 2022