Best of BS Opinion: Financial offences, new MPC's first policy, and more

Illustration: Ajay Mohanty
Celebratory headlines about global electronics manufacturers redirecting their investments from China to India may mask the hard truth that in the long run, the benefits for the country are limited. “Attracting foreign companies to locate electronic assembly operating in India is only a way for these companies to escape high import duties. No real skill creation takes place,” Ajit Balakrishnan points out. He argues here for higher spending on innovation to create world-class companies such as Apple or Google. The second edit offers another critique of the production-linked incentive scheme, and other views look at the new monetary policy committee’s first policy and the regulatory approach to financial scams. sums them up

The production-linked incentive scheme for mobile phones and some other electronics schemes can only be temporary, says the second edit, explaining why policy intervention needs to be focused on the export side. Read it here

 
In an assessment of the new MPC’s first policy, the top edit points out that the central bank is being expected to accomplish multiple objectives in areas such as growth, inflation, government borrowing and currency management. That will be a tough balancing act, it says here

 
Scams are pervasive in the financial markets and hurt retail investors the most but the consequences for the perpetrators of these crimes are rarely a disincentive, says Debashis Basu here

 
QUOTE OF THE DAY

 
“War is a plausible/excuse for absence, whereas/exploring one’s capacity for diversion/is not”

 
Poem by 2020 Nobel-laureate Louise Gluck


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