I want to thank Business Standard for publishing the beautifully analysed editorial, "Mid-course correction" (April 13). Indeed, retail inflation is trending down and investments are not picking up. However, there is some good news, as is evident from the paper's front-page lead report, "Monsoon cheer". A normal monsoon, as predicted by the India Meteorological Department - despite its forecast-versus-reality record not being that great - could be a game changer. Agriculture production should see a strong revival and that would have a cascading effect on rural demand and investment sentiment.
The Reserve Bank of India (RBI) has done its job. It is unrealistic for the editorial to say that "its April policy could have initiated a bigger cut in interest rates". The onus is now on the government to reach a political consensus for facilitating the passage of pending, crucial laws to implement the goods and services tax, the Bankruptcy Code as well as labour reform. Once these are done, one could say that the ball is in industry's court.
However, despite efforts made by the government to facilitate ease of doing business and the RBI's move to reduce interest rates, industry has been lethargic and somewhat overcautious in making new investments.
If "growth continued to elude the capital goods sector", industry must take the blame. It is time for industry to grow up and stop asking for more.
Krishan Kalra Gurgaon
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