The article by MA Oommen, titled ‘Key Takeaways from Kerala’s White Paper’ (June 18), reinforces the findings in the white paper on Kerala’s financial stability. Oommen warns the State about its poor financial health, and his observation that the White Paper should have addressed the future of Kerala instead of a reductionist approach focusing primarily on fiscal indicators is laudable. While the white paper and Oommen advocate reforms in KIIFB, it may be noted that KIIFB has mostly taken up infrastructure projects by borrowing money, which has to be paid back by the State Government. Also, capacity development of the departments executing projects funded by KIIFB has not happened. The projects are getting delayed, as in the case of projects being carried out by departments like PWD, KWA, etc. The State Government should make sure KIIFB enables capacity development of the executing departments so that the projects are completed efficiently and on time.

To make its economy more stable, the State needs to overhaul its governance and civil services, and develop policies that will attract investments in infrastructure and social sectors.

Kuncheria P Isaac

Founder Vice Chancellor, APJ Abdul Kalam Kerala Technological University

Monitor capital outflows

Apropos ‘Hawkish Fed’ (June 19), the Fed sees domestic price pressures as structural rather than energy-driven. The narrowing yield spreads between Indian and US bonds could put pressure on the rupee regardless of how stable our own macroeconomic fundamentals remain. The RBI will need to stay watchful on capital outflows rather than assume domestic stability alone will protect the currency. The piece is also right in flagging that better real-time data would strengthen India’s monetary policy decisions.

SM Jeeva

Chennai

Foreign currency deposits

This refers to ‘FCNR (B) deposits — a counter perspective’ (June 19). The income squeeze facing Indian workers in the US, driven by layoffs, costly H-1B renewals, and persistent inflation, genuinely limits how much surplus the diaspora can park in such deposits regardless of attractive interest rates. Banks chasing aggressive targets risk mis-selling NR(E)RA balances as fresh FCNR(B) deposits, which would only invite regulatory scrutiny later. A more sustainable approach would be tailoring products to the diaspora’s actual liquidity needs rather than assuming higher rates alone will drive mobilisation.

Pon. Arun Kumar

Tirupur, TN

Published on June 19, 2026