This refers to ‘Debt mutual funds turn volatile on RBI repo rate hike’ (October 9). The volatility in Indian equity and debt markets following the repo rate hike has left investors uncertain about their next move. With depositors unlikely to benefit immediately from higher rates and the RBI signalling calibrated tightening, existing debt portfolios, particularly those with longer maturities, could face further valuation pressures. With equity markets also under pressure, investors face a potential double whammy. As higher policy rates gradually transmit into lending rates, borrowers may face higher EMIs or extended loan tenures, depending on their loan terms. These developments could dampen private consumption and investment, posing risks to India’s projected 7.1 per cent GDP growth for FY27.

Srinivasan Velamur

Chennai

Reductive rhetoric

Apropos, ‘Govt reacts to Musk’s oligarchs post, rebuts discrimination allegations’ (October 9). US businessman Elon Musk’s post in X asking if Mukesh Ambani is India’s “real boss” reduces a sovereign democracy to a corporate oligarchy. Spurred by regulatory delays over Starlink, Musk misinterprets strict governance as industrial favouritism. India’s policy decisions prioritise national security, data sovereignty, and fair competition over corporate interests — domestic or foreign. While industrial leaders hold substantial economic influence, state policy remains governed by constitutional institutions, not private dictates. Foreign tech leaders must respect that sovereign regulations reflect national priorities, not tycoon influence.

N Sadhasiva Reddy

Bengaluru

BRICS’ climate action

This refers to ‘BRICS needs to address CBAM consequences’ (October 9). Climate measures should not become additional trade barriers for developing economies. The EU’s Carbon Border Adjustment Mechanism could impose substantial compliance costs on exporters, particularly smaller enterprises. BRICS nations should develop common carbon accounting standards, emissions verification procedures and reporting systems to reduce duplication. They should also promote technology transfer and affordable climate finance to help businesses adopt cleaner production methods.

PS Harishmitha

Tirupur, TN

Published on October 12, 2026