This refers to the report “Army chief slams BEML on Tatra, awards it Rs 1500-cr deal” (May 31). Since the liberalisation of the Indian economy, there has been a tendency to import ready-to-use articles and borrow technology, even for their subsequent maintenance. In this respect there is no divide between the public sector and the private sector. This is a major reason for the drain on forex and the resultant impact on the value of the rupee.
A higher level of indigenisation of such high-value items of import as defence equipments, aircraft, vehicles and material for industrial infrastructure will go a long way in stabilising the rupee and improving the balance of payments situation. The Centre should think of discouraging imports of items like coins, toys, electronic items and so on by providing appropriate incentives and imposing disincentives when necessary. Self-reliance, even in the current situation, is not a bad idea provided it is applied with prudence and in select areas in which the country has strong capabilities.
M G Warrier Thiruvananthapuram
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