This refers to Priyanka Kishore's article "Rupee approaching tipping point (Market Mind, August 26). The analysis includes current account deficit (CAD) as a reason for the slide of the rupee and succinctly points out that it is the third year that India is grappling with the implications of a weakening currency. In analysing the cause and effect, the author left the CAD alone and dwelt on the external factors. But, it does not take much analysis to say that the ill-conceived populist economic measures and the apparent apathy of the government to the profligacy behind it is the main reason for the current state of the rupee. Much stronger measures to contain the CAD, than the ones deployed now, with due consideration to the supply side, too, would strengthen the currency internally and that will in turn contribute substantially to hasten the stabilisation process.
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N Subrahmanyam Hyderabad
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number