The cut in policy rate rates is a strategy that could suit the current state of the economy. While we are more sure footed on this path many other economies are either not ready to go ahead or doing it with hesitation. Rising commodity prices in last decade had set the tone for a tight money policy.
In our case, as the food inflation has not been fully arrested and monetary easing was likely to be held back at least up to Q2. But persistent and sluggish manufacturing indices are seen to dictate policy. If the US is softening the rates largely on employment data, the UK is doing it more on hope. Eurozone has done so with more assurance.
R Narayanan
Navi Mumbai
Corporate cricket
This refers to the news report ‘Corporate employees to pad up for new cricket league — ICB T20’ (February 27). Rajeev Kumar, Director and CEO, Eminence Netrasup India, deserves praise for conceiving this idea.
The tournament will provide the much-needed relaxation for the corporate employees. ICB T20 may even become as popular as IPL.
The unique criterion that none of the players should have played first class cricket is interesting.
S Ramakrishnasayee
Chennai
EU must be reasonable
Apropos the news report ‘EU ready to address ‘specific concerns’ of India on carbon tax levy on imports’ (February 27), it is essential to note that CBAM violates the principle of Common But Differentiated Responsibilities (CBDR) which engenders different responsibilities on developed and developing countries in addressing climate change.
EU needs to recognise this accepted principle and modify and soften the norms governing CBAM for India. Developing countries such as India needs EU to defer the implementation of CBAM by at least 5-10 years to enable Indian industries to transition to more energy efficient and less carbon-intensive methods.
CBAM tax estimated to be in the high range of 20-35 per cent needs to be brought down to a reasonable 10-12 per cent range.
Further, the implementation of CBAM requires industries to provide huge amount of data raising privacy concerns. Self certification or a certification by an independent authority constituted by Indian government may be accepted by the EU in lieu of the data that needs to be submitted by exporting industries.
EU also needs to acknowledge India’s efforts in achieving its net zero goals.
But India being still a developing nation requires longer time for that transition and EU needs to modify/soften CBAM to make that transition less burdensome for Indian industries.
Kosaraju Chandramouli
Hyderabad