Lettes: Policy and execution

With reference to Devangshu Datta's article, "A bullish yet unpredictable situation" (June 13), despite the announcement of a number of policies to boost economic growth, the execution is not cent per cent. This adversely affects the market.

The possibility of a good monsoon will enhance the demand for goods and services, especially in the hinterland. A surge in investment and execution of reforms is essential. The government must utilise the remaining period to maintain the confidence of people. The slow-growing manufacturing and exports sectors need to be rejuvenated.

Financial intermediaries are the growth engines of the economy, but they are reeling from the pressure of mounting bad loans. Quick resolution of this issue is essential to maintain confidence, push credit expansion and investment.

A good monsoon will likely have a positive impact on prices, particularly of food items. At this juncture, the banking regulator should look for a rate cut to accelerate credit expansion and investment.

V S K Pillai Changanacherry

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