This refers to ‘A well-diversified investment portfolio’, May 25. Mahesh Vyas says that the economy is going to be all right since the companies in India have not put off their investment drive. Several of his articles in the Business Standard make this point, the one last week had details of the investment plans of top companies in various sectors. How does this square with the fact that over 1,200 companies (see ‘Poor quarterly numbers’, June 2) continue to “do badly, with stagnant or declining sales and with profit margins under continuing pressure”? The figures are contradictory and we need to know the truth. In the past, it was argued that India had globalised so much that companies were adding capacity to meet the global demand. But this cannot be the argument now with the IMF saying it will take a year or more for the global economy and world trade to revive. Is it just possible that companies who have announced their investment intentions have not admitted these are off? In any case, how does it hurt them to have their names on a list of ‘investment intentions’?
Srinjoy Gupta, via email
