Ad Here  
to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Revving up the manufacturing sector Come elections, come advertisements... TN accounts for the largest recruits by the IT sector An enemy’s enemy is a friend TN-leverage strength of BHEL, NLC... WTO Meet: resolved to meet again Fuel for thought Odisha: spectacular win by Naveen Patnaik PC’s preference for professionals The nuclear option Alexa – Talking Wikipedia Permanent secretariat for TN GIM Tribute – UCAL Selvan… Telangana in top gear… L&T: focus on infrastructure and more infrastructure… Convulsions in The Hindu Welcome focus on core competence Moily’s bold thrust Bihar elections - the Rajaji formula worked Fall in crude prices help in oil sector reform GM Technology at last! The brown list of Venkitaramanan Secularism and anti-Hinduism Road development slows down Polls and promises A glass full of corruption More Shakti to resource mobilisation... Fortune for Indian Airlines The star of Spencers is no more Breaththrough in malaria control More heat than light A rich pool of talent not utilised…. More Shakthi to Das’ elbow S V Raju – a ‘good’ true liberal Shaming of Tamils by Tamil farmers at Delhi Don’t seem to feel the pulse… A more liberated TN… IPL type auction for VCs? Liberal imports idling indigenous capacities The Ports’ Pasha expands into Tamil Nadu Shanti and Sadhana through Music EEC at the National Media Centre Modi storms Silicon Valley Roaring Ro-Ro facility Wanted: a second airport for Chennai Measuring roof tops in terms of KW/MW Robber barons everywhere Align crops to agro climate endowments… IAS invades NDDB... Make standards certification mandatory... There was flood of milk. Reason: no milk commissioner! A think tank for Chennai Solar, solar everywhere … Reliance’s TV – 18 ready to launch Tamil News Channel CSR and CMI: promise of another Srinivasan Ramanujan... No mega rail project for Tamil Nadu More tributes to GR Tax agriculture Marketing expert Balagopal is no more Rs.1600 crore paper board plant of TNPL Eternal support for capitalisation of PS banks A C Muthiah – his munificent bequeaths to science Recognition to role of NBFCs.... Computation of GDP – conundrums continue The ‘Jayanthi Tax.’ L&T- the specialty of special purpose vehicles Cement prices continue to rise… TELANGANA at last…BUT This scant respect for Law Tatas moving out of urea production... Why land prices zoom in TN? Return to king coal for urea... Delhi Chalo... Shale gas and its shallow future Preserving for the future Intellectual of rare qualities Towards speedy justice Delhi is distant… Where is Rajaji? How Air-India loses customs... PPP mode for upgrading Corporation Hospitals When the President was rendered homeless… Modi and the lady Insurance companies bleeding, yet no decision on increasing FDI limit! Editor's Notes Which side are you, Montek? Build close rapport with business leaders Medical costs hit the roof... Limit foreign borrowings to hi-tech, export potential projects... Strengthen the base... Maximising the micro pricing … Welcome GST Why this malaise in medical education? Editor's Says Tribute – M V Murugappan Vibrant Gujarat B H Kothari - a tribute Bihar – Nitish Kumar adopts the Lalu model Sri Lanka votes for change Tatas moving out of urea production... Paytm karo... Muffled voices for merit… Shipping woes of Chennai companies The few handicaps... Quality education through the PPP mode A yen for wastage… Excel Generators provide the vital back-up A proud Madrasi Silver Years of Madras Musings TGS- The king storyteller Demise of a media baron... Delhi returns to BJP Plummeting profits of PSBs Valli, they are more marginalised The ‘Ayyo-yes’ is no more Music happens Put expensive assets created to use... Auto components surge… Lesson from Chandrababu Naidu Multi-faceted Venkat Adharma of opposition politics West Bengal: mindless malignancy The Gulf aviation boom Waning interest in public discussions… Funding the un-funded Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai …and of a popular trade leader Like Hinduism: many paths to reach God... Welcome thrust on trade in Modi’s foreign visits... A friendly business group Air Asia India will set new benchmarks for budget travel Of course, Gujarat is vibrant He saved millions from starvation... Godspeed, Chief Minister JJ Whistle-Stop Tour of Raghuram Rajan Kinetic Karnataka The balancing act Welcome changes that testify to Jayalalithaa’s return to health IPL - no surprise this scam Colour-Chem’s colourful KRVS CIPET hqrs to stay at Guindy – for the present? Wise Presidents Five star activism stalls development activity The rise and rise of KCP Naidu will soon build a new Hyderabad For whom the bell tolls? Poor quality of university VCs A Grand Finale for SN’s MS centenary at the US… London, London Narayan Inflation: are we emulating Argentina and Brazil? Quality silica from Neyveli MHC should not return to its old indisciplined ways Should we change the official year? He continues the focus on social amelioration The Jan Dhan bonanza The sea- saw battle continues... Tough task taking states together Mersal magnified Dr C Rangarajan returns to Chennai Things happen by accident and not by design... The why of tax incentives Readers' Mail Contrarian cousins Kulandai was a giant Mu Sigma – is no more Another Indian music maestro at the UN No Maha Koottani in TN... Lalu’s envy, India’s pride Russi Mody – a tribute Building loyalty through the stomach Kudos to NDTV... When Ratan Tata visited SRM Sweet news for TN sugar mills No engine for this car Noble nonagenarians... Poor representation for Kerala and TN in Cabinet When small is no larger beautiful.. China invests in India A Grand Finale for SN’s MS centenary at the US… When nations steal growth from one another… All eyes on Sankara Nethralaya Haul over the coal When TN politicians can emulate Kerala's CRS, a jewel among managers, is no more. The Swadeshi Trump Revive development banks... Increasing non co-operation of state leaders Protest masters... New IT products of Ramco in the pipeline… Tribute For whom the MIDS bell tolls? Diamond jubilee of Egmore Samskrt School Streamlining mandatory third party cover Focus on quality of power - its only around 170-180V Where a state respects its litterateurs… Tihar, Puzhal not different from Parappana Agrahara R Sridhar steps down as CEO of Shriram Capital Sweeter prospects for sugar ONGC at KG Basin Boy, can you beat these? When online building permits work…. TIAM turns a full cycle Engineering seats go abegging Gas is the way forward Discoms deserve better… Making ‘my Amaravati’... Scientists urged to take up farmer-oriented research S Ramanathan – a versatile musician, musicologist Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated The rise and fall of Annamalai University Solar thermal shines… GNS - 100: our first subscriber Infrastructure funding – lessons learnt Tribute – Manikam Ramaswami SoA @ 80 Delhi is distant An informal presentation - analytical, forward locking... Gay abandon in pricing Banning booze... The power-full Hindujas Cutting the nose to spite the face Small units prefers to remain small... Online not in line with brick and mortar businesses... TN – agglomerate land holdings without alienating ownership Naidu’s return augurs well for Seemandhra CII projects higher growth… Airlines in India: cost and space A welcome initiative by the judiciary Not just in-laws (and outlaws); they’ve renowned academics at the helm! Pharma – overdose of copying An inexplicable neglect Land reclamation from sea appears cheaper! Parliament in paralysis... Cleaning Ganga – relocate tanneries and install electric crematoria A professional at the helm of IRDA... Adapt Vajpayee dinner diplomacy Rahman at CIC Remembering Indira Sivasailam... EVM is tamper-proof Fortune 500 review F C Kohli - his concerns all embracing Padma Bhushan for A Ramakrishna Nuclear power at the nucleus
China invests in India

Two of our leaders, Prime Minister Narendra Modi and Andhra Pradesh Chief Minister Chandrababu Naidu, recently visited China. Both attempted to impress the Chinese policymakers and business leaders to expand their investments in India. In Modi’s visit MoUs were signed for around $ 22 billion of investments that included large corporations like Bharti Airtel, the Adani group, Wipro BPS and Jindal Steel and Power.

In the telecom area, Alibaba is reported to be interested in investing in Micromax. There were also expectations on Chinese investing in the Indian Railways. I believe a large scope for drawing on the rich expertise built by the Chinese in constructing high speed rail tracks capable of speeds in the region of 400 kmph. This will be of special value to the golden quadrilateral for railways planned by the NDA II government.

A rather disturbing trend in the two way trade between the two countries is the adverse balance in favour of China. In a volume of $ 70 billion of trade, imports from China amount to around $ 55 billion and exports from India at just around $ 15 billion. This is on the pattern of such imbalance witnessed in the trade of China with US; the huge surpluses generated have been utilised for making massive Chinese investments in US companies and assets.

In the bilateral trade one witnesses steep increase in imports of goods of low technology that have been traditionally manufactured for decades by Indian enterprises, especially in the small sector. In the earlier phase, competition from China affected exports of a vast range of goods from India from this sector like textiles and garments. But today such products are making deep inroads into Indian markets on the strength of their much lower prices. These range from cheap Ganesha idols to fire crackers to glass, ceramic tiles, electrical and electronic goods.

Many state social welfare schemes provided to ameliorate the lot of the poor and weaker sections involving thousands of crores of rupees, sadly, do not go to the benefit of hundreds of small units. Tamil Nadu government provides a few thousand crores of rupees worth fans, mixies, grinders…. to the weaker sections and laptops to students through liberal budget support. Small scale manufacturers of these equipment, who tendered for supplies find it cheaper to import these from China rather than produce these in their factories. The result is the lack of accountability. Such equipment are not covered by any warranty and do not perform well. Cost of repairing these are also high and such a beneficial scheme to the weaker sections seems to benefit only the manufacturers of cheap goods in China.

Gradually such damage is also creeping into better organised segments like the manufacture of ceramic tiles. Gujarat made excellent use of gas as the fuel for such manufacture. In a matter of a decade the entire Rajkot district and its environs emerged as a strong centre for ceramic tiles. In recent times, these have been accounting for a lion’s share in the market for tiles. Today under World Trade Organisation (WTO) rules there is easy entry and Chinese have made deep inroads into this market. Similar is the experience of the once flourishing manufacturers of clocks in Gujarat.

To save hundreds of small units and employment of several lakhs, it is urgently necessary to tackle this issue. Think tanks should work on schemes of intelligent non-tariff barriers.

There is not much scope for expanding Indian exports of sophisticated, value-added products to China. IE has been suggesting India to focus on export of agricultural products that are in huge demand in that country. China imports millions of tonnes of soya from far away Latin American countries. India can try to get a share of this by leveraging its advantages of large arable land and of farming feasible round the year in most parts of the country. But this needs strong policy changes that would permit contract farming and corporate farming over large areas. With agriculture as a state subject, such a change is possible only by building consensus across the vast political spectrum.

As BJP is in power in several large states like Madhya Pradesh, Rajasthan, Chhattisgarh, Gujarat and Maharashtra and with the business-savvy Chandrababu Naidu as a strong ally such a change can be attempted at least in these states.


Author :
Reported On :
Sector :
Shoulder :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236