The Hindu Business Line : Tracking Sensex

The article `Sense from Sensex: Don't just keep count, keep abreast' (Business Line, December 28) states that it is the responsibility of policy-makers and all stakeholders to see that the soaring Sensex goes in the right direction and is used to the best advantage for the development of all the sectors.

The author has suggested that the hidden treasure trove of the parallel economy estimated to be Rs 500,000 crore be re-routed along the legitimate venues of investment with the help of the various representatives of the industry.

From the break-up figures given, it is clear how this parallel economy is created and runs. So, two actions are necessary. The Government must take steps to plug the loopholes that create this economy.

And schemes need to be devised to ensure investments are of legitimate funds and not merely an exercise in converting black into white. Perhaps, Budget is the best time to act. Reduction in tax could go a long way with benefit of all.

A. Jacob Sahayam

Thiruvananthapuram

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