Letter to BS: RBI alone will not be able drive economic recovery

Confidence-building measures from the government are essential to boost the sentiments of the investors

This refers to the editorial "Beyond the rate cut" (August 5). Corporates are resorting to lay-offs and turning risk-averse resulting in a low level of investment. This is creating a ripple effect in the economy. Incentivising private investors by lowering the taxes on corporates and high net worth individuals and making available cost-effective credit are paramount to motivate the entrepreneurs to continue investment. A repo rate cut in the ensuing Monetary Policy Committee meeting and action to transmit the same to the end beneficiaries to boost consumption and investment are critical to stimulating economic activities. The flow of credit to