Letter to BS: Pro-capital economy which balances public sector is essential

The public sector must be reduced whenever it becomes a fiscal and administrative burden like Air India

The article by TCA Srinivasa Raghavan “Modi ji abki baar suit boot ki Sarkar” (May 31) is excellent for emphasising two fundamental economic principles that pro-capital does not mean pro-capitalist and also that private capital uses capital more efficiently. He has rightly underlined that "all policies — tax, imports, interest rates and exchange rates — must be made private sector friendly".

However, he has made two conceptual mistakes. First, if all these policies are private sector friendly, they will also be public sector friendly. For instance, if the anti-profit apparatus in the GST law is abolished, which is a must, then