The Financial Express -- Expressions

This page contains Editorial and Op-Ed articles

Wednesday, November 12 1997

Letters to the Editor

VRS: who is next?

On the labour front, the hottest news is: "Who is opting for the voluntary retirement scheme (VRS)? Which company has already introduced it and who is going to be the next. It is not only the private sector that is implementing the VRS, but the public sector as well. What is it that is driving the companies to trim their work-forces?

Full convertibility in three years!

In an article published in April in this paper, I had argued that India is not ready for capital account convertibility (CAC). Events since then have only tended to emphasise this impression. Even finance minister P Chidambaram has, in his recent speech, in New York voiced similar concerns. He has emphasised the importance of being very careful with financial market reforms and the need to continuously monitor the "fundamentals" of the economy. However, at the same time, he has resolved to stick to the deadline of "three years" to achieve CAC. This appears a bit incongruous. One is being asked to continuously monitor the fundamentals and achieve "targets" yet, at the same time, the confidence is voiced that in three years the goal of CAC will be achieved.

A pragmatic plan

The Disinvestment Commission's recommendations have once again been eminently reasonable. While the Union finance ministry may not react warmly given the magnitude of fiscal strains, there is no doubt whatsoever that the Commission has demanded a far-reaching reform in mooting that disinvestment should be delinked from the annual budgetary exercise.

VRS

Full convertibility in three years!

Disciplining states

A pragmatic plan