The rollbacks are retrograde and based on unsound financial principles. The government is merely capitulating to the jewellers’ lobby and is trying to please foreign institutional investors (FIIs) — both of which thrive on “unaccounted” money and speculative practices. The stock market index does not reflect overall economic growth. FIIs are free to bring in and take out money and as such do not add to real growth. Though domestic corporations and individuals are flush with investible funds, the Budget has done little to attract local investors. It may not be a sheer coincidence that the announcement of the rollbacks coincided with US Secretary of State Hillary Clinton’s official visit.
N Ramamurthy, Chennai
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
