Letters to the editor

The economy

THE Cover Story (October 12) was precise and exhaustive, covering all aspects of India’s failing economy. The results of the Narendra Modi government centralising all control of policies and administration in the Prime Minister’s Office and surrounding itself with yes-men are becoming glaringly obvious. Bullet trains, aerodromes of international standard and boastful friendships with other nations do not bring any positive change for the general public. Directly or indirectly, the effect of the excessive rise in fuel prices on general people is back-breaking, whereas the impact on the rich is just temporary. It may not be surprising if Modi and associates renew their mandate in the coming general election.

M.N. Bhartiya, Alto-Porvorim, Goa

Paradoxically, fuel prices in India are at an all-time high although global crude rates have dropped over the same period. Naturally, citizens are wondering why they must continue to pay more for petrol and diesel. One answer could be that the disruption caused to the economy by demonetisation. The other reason could be that the introduction of goods and services tax slowed down economic growth, and the Central government finds it challenging to cut the duty on petrol and diesel. Blaming the international oil price for the rise in fuel price in India is a smokescreen because when oil was trading at around $50/barrel, oil-marketing companies did not reduce prices but, in fact, increased them.

If fuel prices continue to go up at the current pace, a time will come when people will be compelled to reduce consumption. Next to liquor, fuel prices allow for the easy collection of taxes by both the Central and State governments.

H.N. Ramakrishna, Bengaluru

Finance Minister Arun Jaitley announced that three public sector banks would be merged into a single entity in the belief that once the process is complete the new bank would not only become the third largest bank in the country but would ease the pressure on the government to set aside money to meet the recapitalisation requirements as per Basel III norms. But, it is a temporary measure because bad governance and questionable lending practices are what have let down public sector banks.

It is clear that the current merger of a weak bank, an average bank and a strong bank is being done keeping in mind the 2019 election even though it is not an ideal solution at all times to bring about a turnaround in the banking system.

K.R. Srinivasan, Secunderabad, Andhra Pradesh

Nepal

THE article “Falling out” (October 12) was a timely warning to India’s policymakers. Nepali resentment of Indian domination goes a long way back despite cultural and emotional bonds. The current drift in Nepal’s foreign policy is inevitable in the context of China’s growing regional influence. To resist it on the basis of paranoia about China will be counterproductive in the context of a long history of Indian meddling in Nepal.

The final paragraph of the article is somewhat inaccurate. J.R. Jayewardene, Sri Lanka’s President from 1978 to 1989, provoked Indian anger by leaning towards the U.S. and away from the country’s policy of non-alignment. Without provocation, he personally insulted Indira Gandhi in 1977. Thus, there was a prehistory to India’s support for Tamil militants. Sri Lanka’s friendship with China goes back to 1951: even before diplomatic ties were established, the then Ceylon defied the U.S. to sign the “Rubber-Rice deal” with China. China’s warmth towards the country was not significantly affected by changes of government. I doubt if events in Sri Lanka and the Maldives would seriously influence policy in Nepal.

S. Sivasegaram, Colombo, Sri Lanka

IT is strange that Modi with his globe-trotting trips tried to improve relations with foreign countries except in India’s own neighbourhood. The less said about India’s relations with Pakistan the better, and relations with the Maldives, Myanmar, Nepal and Sri Lanka are far from satisfactory. Ever since the 2015 blockade, the already cold relations between India and Nepal worsened. The Nepalese have not forgotten this episode. . India was the first to rush to Nepal with help after the earthquake in 2015, but the coverage by the Indian media and others of the disaster put the Nepalese off, and soon the Nepal government asked Indian aid workers to return home. India needs to do more to make its neighbours regain their confidence in it.

D.B.N. Murthy, Bengaluru

Venezuela

THE secret meetings and conversations between U.S. officials and Venezuelan commanders about a proposed regime change in Venezuela is yet another instance of blatant intervention in the internal affairs of that country by the world’s self-styled policeman (“Venezuela next”, October 12). This should not surprise political observers given the U.S.’ track record of meddling in the internal affairs of those countries it perceives to be acting against it.

It is unfortunate that the U.S. continues to unabashedly interfere in the affairs of other countries ignoring Resolution 2131 (XX) of the U.N. General Assembly: Declaration on the Inadmissibility of Intervention in the Domestic Affairs of States and the Protection of Their Independence and Sovereignty. It would be better if Venezuelans were left to themselves to find solutions to their problems.

B. Suresh Kumar, Coimbatore, Tamil Nadu