This is with reference to ‘Our external account looks gloomy’ by Madan Sabnavis (September 26). Foreign exchange reserves are bound to rise when economic activity is brisk but at this moment, activity is slow. India’s capital account cannot be isolated from the world; and during this slump, every country has lost wealth from the external account because of reverse flow or adjustment in the currency. India has not done any adjustment in the currency but its import and export values have shrunk; also, the rate of investment was not as fast as expected when the global economy was growing fast. There’s no reason to worry.

RK Arya

Faridabad, Haryana

CAD is not always bad provided external debt is redeployed to generate higher returns domestically. It is the responsibility of the government to create such a climate. The stability factor also needs to be taken into consideration while looking at capital flows. Foreign Portfolio Investment is always speculative.

Between Foreign Direct Investment and FII Foreign Institutional Investment, government should focus on FDI which is longstanding in nature and plays a major role in GDP growth. Through liberalisation and enhancement in the limits of foreign participation in various sectors, FDI inflow could be enhanced provided the global climate remains favourable. To maintain a qualitative current account surplus, domestic savings growth should gradually increase. But with the current low interest rate regime, it is going to be a challenge as bank deposits do not look attractive anymore.

Srinivasan Velamur

Chennai

The right spirit matters

This is with reference to ‘CSR has to be made more meaningful’ by Sudha Srinivasan (September 26). If implemented in the right spirit, CSR can work wonders in India. For this, the company must choose a leader who not only has expertise but a sincere feeling for the deprived. This job cannot be assigned to the HR department as a matter of their routine work.

Retired employees can be recruited for this work. Help can be sought from NGOs too. Those employed in this department should have a track record of integrity and social responsibility. CSR should be made compulsory for all government organisations and undertakings.

Veena Shenoy

Thane, Maharashtra

There is no excuse for companies to default on CSR when there is a comprehensive list of areas they can work in.I agree that an industry-specific CSR mandate would be useful. Defaulting companies must be penalised to set the right example.

Government can extend 100 per cent tax deduction to other areas to make it more attractive for companies.

Bal Govind

Noida, Uttar Pradesh

Indian corporate honchos’ apathy to CSR has much to do with their attitude towards social good. Barring some reputed organisations they are not known for their liberal use of corporate profits for the well-being of the community. Some, with religious inclinations, are content with spending a lot of money on building temples or donating money to them. This attitude has no relationship with the quantum of profit.

YG Chouksey

Pune

Legend in the making

Off-spinner R Ashwin’s record as the fastest wicket-taker for India, second only to Australian leg-spinner Charlie Grimmet, is remarkable. In just 37 test appearances he has taken 200 wickets, the highest by a bowler after world war 2. His record as a batsman is also noteworthy. .

VS Ganeshan

Bengaluru

Different judges

Karnataka is contemplating moving the Supreme Court over the Cauvery water row once again. This is good. But what is the use if the same bench presides, with one of the judges hailing from Tamil Nadu and owing allegiance to that State and its chief minister? If the law permits litigants to seek a change of judges, the State must make use of its rights.

KV Seetharamaiah

Hassan, Karnataka

LETTERS TO THE EDITOR

Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.

Related Topics
comment COMMENT NOW