Opinion - Letters to the Editor

Economic slowdown

Union Finance Minister P. Chidambaram’s appeal to various sections of industry to reduce prices to induce consumer demand should be considered by the corporates seriously. Surely, there is tremendous scope for at least real estate companies to cut down the prices immediately. It is well known that they made huge profits in the last three to five years due to the sky-rocketing of prices. Today, quality housing has become unaffordable for the common man due to artificial inflation in the sector. There is additional scope for real estate to cut prices as the prices of steel and cement are cooling off. Spurring demand is the responsibility of not only the government but also market participants.

The government should force the companies to slash prices before it contemplates any other measure that benefits industry.

J.V.C. Sreeram,

Secunderabad

Charity begins at home. The Finance Minister should therefore ensure that the prices of petrol and diesel are brought down. The international prices of oil have considerably declined. There is no justification in maintaining the high level of prices when the people are suffering. A reduction in the prices of petrol and diesel will benefit all sections whereas any reduction in tariff by hotels, airlines, and car makers will benefit only a few.

Bhasker Shah,

Chennai

Why does Mr. Chidambaram not advise his colleague to reduce the prices of petrol and diesel? Sure, lower prices will stimulate consumer spending. But consumers also need cash in hand to spend.

A person belonging to the middle class spends most of his income on transportation as two-wheelers and four-wheelers have become a necessity. Even if the prices of cars and two-wheelers are reduced, the people will not buy them when the expenditure on petrol per month is half the EMI on car loan.

C. Prem,

Palayamkottai

The government should not ape the West in bailing out big corporates. It should think of massive investment in the social sector, which will increase the purchasing power of the people. This will, in turn, create more demand and inject growth in the economy. Any cut in excise duty will be used by the big corporates to cushion their profitability. It will not be passed on to the end customer.

N. Sekar,

Salem

The economic slowdown has shaken the entire world and has had drastic effects on sectors like IT. It is evident from the cancellation of offer letters and delay in the issue of call letters to students from some foreign-based companies. Prime Minister Manmohan Singh and Mr. Chidambaram deserve to be praised for anticipating the global crisis and mitigating its effect on Indian companies.

P.R. Gowthaman,

Madurai

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