Letter to BS: Current scenario portrays lopsided picture of economy

The net debt-equity ratio will also portray a lopsided picture as fast moving consumer goods and information technology involve swift rotation of capital

This refers to your article “Corporate India chooses deleveraging over growth” (October 3). The present economic scenario is experiencing the global effects of high costs of oil as also the fall in the rupee value. Thus cutting down on infrastructure to reduce capital costs takes precedence over market thrusts for corporates especially those who have oil-based production. Corporates will prefer lowering capital costs to ensure prudential investment and in turn, retain market and investor confidence. The overall economic scenario thus portrays an approach that is based more on consolidation than on commercial gains. The concentration on reduction of infrastructure costs,