Letters: Not living up to its name

Bringing about the privatisation of Air India is only a small change

Not living up to its name 
 

With reference to the editorial, “Empower NITI Aayog” (August 3), the expectations were quite different from an organisation that has a title as lofty as the National Institution for Transforming India. Bringing about the privatisation of Air India and other public sector undertakings is only a small change. The organisation was expected to look at the big picture and have a long-term perspective of, say, where India is likely to be by 2050. It should have used all available expertise and knowledge to draw up definitive road maps for rejuvenating agriculture, climate change mitigation initiatives, handling internal migration and urbanisation, restructuring education to impart usable skills for the burgeoning workforce to cite only a few areas.
 

With “skinny” resources and an indeterminate agenda, NITI Aayog does not seem to be going anywhere. Expertise is indispensable and cannot be substituted by seat-of-the-pants expediency or “generalist” wisdom of the bureaucracy. The sooner NITI Aayog is fully empowered and strengthened the better.

Udaya Bose, Bengaluru

Restore trust, credibility

The editorial, “Empower NITI Aayog”, briefly covers the birth and growth of the NITI Aayog from the time Prime Minister Narendra Modi announced his intention to demolish the Planning Commission and reconstruct it, to the resignation letter of NITI Aayog Vice-chairman Arvind Panagariya that contains useful suggestions about the future of the “rebuilt edifice”.

When their services were needed the most, Raghuram Rajan and Panagariya took breaks from the academia and served the country, occupying positions crucial to its economic development. They couldn’t be persuaded to stay on, but let’s thank them for their leadership in their areas of expertise. 

Their exits point to the need for a talent pool to avoid vacuum in top posts at short intervals. A plan should be in place to ensure that individuals appointed to crucial positions can continue for five to 10 years.

The government should help the NITI Aayog perform its assigned role by providing appropriate leadership and functional autonomy. This will require much more than a “floating talent pool” and freedom to carry out research work and produce reports. If central ministries and states are to take the guidance of institutions such as the NITI Aayog seriously, the Centre has to restore their trust and credibility. For that, they must be allowed to apply themselves in performing their functions within their legal mandates.

M G Warrier, Mumbai

Cautiously optimistic

In the last bi-monthly monetary review on June 7, the Reserve Bank of India had surprised the markets by maintaining status quo on key policy rates. It was under pressure to cut rates, as markets had nearly factored in a repo rate cut of 25 basis points.

Factors such as Consumer Price Index inflation, the monsoon and its effect on kharif sowing are perhaps enough to ward off worry for the time being. The goods and services tax apart, by and large, a sharp rise in prices is unlikely.

Keeping these in mind, a cut in the key policy rate by 25 bps is along expected lines and would provide impetus to the growth and investment process. There is ample scope for banks to now reduce the rates and pass the benefits on to borrowers.

However, uncertainty as a factor can’t be ignored. Volatile situations persist in pockets of the economy around the world. Risk perceptions are also based on this factor. 

If the stance of the Monetary Policy Committee is any indication, it is looking to be cautiously optimistic. Setting up of a core group to study the lending rate so that monetary policy transmission by banks is in tandem with the government for quick resolution of large non-performing assets and recapitalisation of public sector banks is most welcome.

Srinivasan Umashankar, Nagpur