Best of BS Opinion: India's response to Covid, state of economy, and more

Here are the best of Business Standard's opinions or Friday

Lower interest rates and higher liquidity have resulted in record issuance of corporate bonds, with Indian companies raising over Rs 8 trillion from the bond market so far in the current year. Higher liquidity has reduced the spread over government securities and lowered market interest rates. However, lower interest rates and excess liquidity in the system for an extended period can create risks. Former RBI deputy governor Viral Acharya has rightly argued that as the interest rates spike, issuers will have problems. Cheaper credit could also push up inflation. 

In this context, as our lead editorial notes, the central bank would do well to take such warnings seriously and avoid a build-up of risks in the financial system.

Other opinion pieces for the day talk about how India handled the Covid crisis, and the vaccine candidates.  

The economy thus far has vindicated the government’s approach to minimising the impact of the pandemic, writes T T Ram Mohan

A successful rollout of a vaccine in India will depend as much on proactive briefing of the public by regulators as it will on proactive meetings with the developers, notes our second editorial.

Quote of the day

“We sent a proposal to farmers. They wanted that laws be repealed. We are of the stand that the government is ready for open-minded discussions on provisions they have an objection against.”

Agriculture Minister Narendra Singh Tomar