Letters: It's not the RBI

After pointing out that “the primary responsibility for changing the mood belongs to the Union government...”, your editorial suggests that the Reserve Bank of India (RBI) lower interest rates to spur growth (“Worries over growth”, July 26). Not only is this view one-sided in that it ignores the government’s role, but it also assumes that high interest rates are the chief cause of declining growth. As Sajjid Chinoy pointed out in Business Standard (“Don’t put the cart before the horse”, July 25), our declining growth trajectory is the result of low investments caused by government policy (or lack thereof) and supply-side bottlenecks, for which the RBI is not responsible, nor does it control them. Tellingly, this view was endorsed by Indian businesses in a recent Crisil survey.

R Sankar Delhi

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