This refers to the report "Rate cut not enough to revive investments" (May 4). India Inc's reaction to the recent rate cut by the Reserve Bank of India overlooks the fact that revival of investment is not dependent only on the monetary policy, but also on the government's ability to encourage investor confidence. Recently, we have observed some revival in foreign investors' confidence as witnessed in deals in the aviation sector, and investments by Unilever and IKEA. But these can be at the best described as localised ones. To enable this confidence to sustain and permeate to all other sectors, the government needs to implement reforms in diesel and coal and gas pricing as well as pass pending Bills on land acquisition and so on. But given the continued logjam in Parliament, this appears to be a distant dream. The government should, therefore, come clean on charges levelled against it and initiate steps against its erring members, as a mark of good governance. The Opposition, on the other hand, should prefer meaningful debate on the floor of the House than resorting to disruptive tactics.
V Sridhar Kolkata
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