March 03, 2015

With the risk aversion of the Basel Committee’s bank regulations, India stands no chance of sturdy economic growth.

Sir, I refer to your “A budget that bodes well for future Indian growth” March 3.

I differ. Achieving a sturdy economic growth, in a country which like India has accepted Basel II, and therefore stacks the access to bank credit in favor of those perceived as safe, the past, and against those perceived as risky, the future, is impossible, no matter how pro-growth a fiscal budget is.

Government technocrats will never ever be able to allocate resources with the same economical efficiency as free markets with undistorted banks.

Sir, just look at America, do you think the “Home of the Brave” would have gotten to where it is with such stupidly risk adverse regulations as those imposed by the Basel Committee?