Opinion Let it rise
Its always interesting to try to determine the precise value of Indian currency that can be beneficial to both our importers and exporters.
• Its always interesting to try to determine the precise value of Indian currency that can be beneficial to both our importers and exporters. But is it really possible to determine such value with contradictory objectives? Ila Patnaik provides the answer in a simple way by suggesting that the rupee be allowed to appreciate,without raising interest rates. She has rightly observed that global weakening of the dollar and capital inflows will lead to rupee appreciation,making Indian exports more expensive for foreign consumers. But it will be temporary,and will get corrected automatically in future. It will be better for Indian exporters to adjust to the situation and plan accordingly.
In the coming years,the EU,the US and China will be major players in international trade. Hence the RBI will have to keep a close watch on movements in foreign exchange rates so that Indians benefit. During the same period,the RBI can effectively use monetary policy without increasing rates and controlling the CPI inflation.
Shishir Sindekar
Nasik
Closing time
• The editorial Just shut it is a welcome exception amidst a press palpably soft on Air India. Nehruvian socialism was conveniently twisted out of shape and the government,in order to placate politicians,had wide-ranging businesses run to ruin. It also made steel,heavy machinery,etc where,however,good technology helped survival. Unlike manufacturing,an airline belongs purely to the service industry that is only about customers. The attitude here has always been that of a rule-bound,haughty branch of government,kowtowing only to authority and extending largesse on a quid pro quo. Customers became a necessary evil,since revenue shortfalls were always met by a patronising bureaucracy.
Competition from private airlines hasnt changed babudom for these many years and never will. AI hasnt bothered to learn even from the Indian Railways,which at least tries to accord primacy to the customer. That operating on ground realities alone counts has never been realised by AI or its pilots.
R. Narayanan
Ghaziabad
To the rescue
• This refers to the editorial Permit Raj. Vote-bank politics is playing havoc with our social fabric and national integration,if the permit for non-Maharashtrians in Mumbai,endorsed by the MNS,BJP and Shiv Sena,is any indication. This restrictive approach,to make Mumbai a forbidden city,will not only go against the spirit of the Constitution but will also give it a bad name. Sadly,our politicians are seldom concerned about real issues. Now its for the Mumbaikars to show the door to those who play dirty politics,raking up such emotive issues for votes.
S.K. Gupta
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