This refers to the column 'Is the capex cycle finally turning?' (July 6). It intricately links three major growth indicators - implementation bottlenecks, capex spending and easing of monetary conditions. There should be no doubt about the first indicator given how hard the govt has been working rolling out initiatives for investors, cutting down on red tape and archaic laws and simplifying legislations. It is also trying to go for a stable set of laws related to various aspects of business so that investors do not feel threatened due to notorious clauses in the law.
Capex spending is finally lifting. Even though the banking sector's reluctance to cut rates despite so many positive macro indicators may worry some, we must understand the Reserve Bank of India's inflation control logic, which has reined in the prices of essentials. Easing monetary conditions is visible given the investment flow and spate of mergers and acquisitions in heavyweight sectors. All these are subtle yet strong indicators of winds of change that have started blowing through the economy. Soon, the elephant will trumpet again.
Gaurav Gupta Pune
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