This refers to Debashis Basu's column "Make in India: Beyond the slogan" (Irrational Choice, December 15). The writer has succinctly presented the economic theories governing businesses and the macroeconomy. This has also been argued by eminent business leaders that the economy has been reeling under the high financial costs impacting production. This vicious cycle further restrained manufacturers from availing of the economies of scale.
Fifteen months back when Raghuram Rajan assumed the office of the Governor of Reserve Bank of India, it was widely anticipated that he would rejig the interest rates to put the economy back on the rails. He was right in demanding the government of the day to take the right policy decisions to enable him to take corrective measures. But now with a decisive government at the Centre making the right policy statements, taming the inflation at the Wholesale Price Index and Consumer Price Index levels and crude oil prices at substantially lower rates, there cannot be a better environment to reduce the interest rates to turn the cycle into a virtuous one.
Incidentally, the writer has missed one point in Narendra Modi's "Make in India" policy. Although the policy covers for export of India manufactured goods, its biggest contribution has to be by way of import substitution.
Naresh Saxena New Delhi
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