Trump effect on growth
This refers to ‘India, world should be prepared for economic churn’ (January 22). The American economy is currently in reasonably good shape. For President Trump, ensuring the continuation of this growth story is crucial. However, his aggressive policy approach risks disrupting the economic gains the US has achieved post-Covid.
Trump’s day-one initiatives reflect a determined push towards his inward-looking ‘America First’ agenda. India could face significant collateral fallout from policy shifts. Increased US tariffs may lead countries like China to turn to India for dumping goods facing restricted access to the US market. Additionally, with the rupee on a downward trend, the RBI’s consistent intervention by selling dollars to stabilise the currency could convey a wrong signal, especially given Trump’s historical criticism of such actions.
Srinivasan Velamur
Chennai
A hit to ‘Efficiency’
As predicted, the New Department of Government Efficiency is “ too small” to accommodate two aspirants, Musk and Ramaswami. Before its start, there were conflicts between oil interests and electric-driven automobiles. Add to that, a question has come up: Why save TikTok when China does not allow Twitter or Facebook in its country. The Trump term brings twists and turns.
Dorai Ramani Suresh
Ghaziabad, UP
Consumption disparities
Apropos ‘Consumption puzzle decoded’ (January 22). The disparities in consumption between rural and urban populations reveal the inequality in income distribution among both sections, as the level of earnings is crucial for consumption and savings. The earnings of the rural population depend mainly on farming activities, which are subject to favourable climatic conditions besides economically viable inputs. Whereas the urban population has opportunities to earn from various economic activities.
An uninterrupted flow of capital at economic rates into the rural economy by way of institutional credit is indispensable for economic activities to flourish in the region.
VSK Pillai
Changanacherry, Kerala
Kenyan basmati rice
This refers to ‘Kenyan farmers reap success with basmati rice’ ( January 22).
India is an agrarian nation. Its think-tank should relentlessly endeavour to produce quality agricultural products at reasonable prices and cater to the needs of different markets across the world. That Kenyan basmati rice is posing a threat to the Indian variety should serve as food for thought to Indian policymakers and farmers. Also, India should take note of Thailand’s recent foray into the basmati rice market. It should step up to the plate and deliver.
S Ramakrishnasayee
Chennai
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