Friday, June 27, 2003
Re: squashing bugs
Sorry Ramki, just some feel-good machismo once in a while. "dil behelAne ke liye khayAl acchA hai ghalib!"
But back to the real world -- Why the Indian economy lags behind China's
Perhaps no single issue excites Indian industrialists more than the subject of erratic power supply. Indian small and medium-sized enterprises (SMEs), the backbone of India's manufacturing and industrial employment, are now reeling under pressure from imports. "We do not want protection," says Y P Suri, secretary of the Federation of Associations of Small Industries of India, an apex body representing SMEs. "All we want is support in terms of infrastructure."
From padlocks to electrical appliances, Chinese goods have made a mass entry into Indian markets. Chinese electrical goods flooding the Delhi market have forced over 250 units in the capital to close shop. "How can you compare us with China?" asks Suri. "Can the Indian government guarantee us the same kind of power supply that Chinese SMEs get?"
With more than 3.3 million small-scale units spread across the country and with over 18 million people employed in them, SMEs are India's second largest employer...
Compare our struggling SMEs to China's dynamic Township & Village enterprizes (TVEs) which spearheaded their economic growth. Abundance of subsidized electricity, land, etc reduces factor costs and makes them globally unbeatable. Importantly, the TVEs, etc ensure the participation of the masses of China and an equitable distribution of benefits of growth, whereas in our country we only hear of IT and other multinationals in our economic news. Hence our netas' BS theories about "trickle down effect", and "leapfrogging" using IT.
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