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

SUCCESSIVE DROUGHTS of the last two years had contributed to zero agriculture growth.  A vast range of commercial crops, including sugarcane and cotton, recorded decline, causing widespread misery in several parts of rural India.

In this background the prediction of an average monsoon is welcome. This kindles hopes on a significant improvement in agriculture growth. This has two favourable tidings: first a higher rate of economic growth, with agriculture sector accounting for 14 per cent of GDP, the jump in the agricultural sector could contribute to more than one per cent growth of GDP. CII predicts economic growth can be around 8.2 per cent!

The second is its impact on the rural economy. Better incomes would trigger higher spending on goods and services and will help increased production of consumer goods and other services.

Naushad Forbes, who had taken charge as President-CII, pointed to several green shoots: much higher demand for automobiles and tractors, step up in investments on highway development, railways and other infrastructure sectors and an improvement in investor sentiment. He also referred to the Centre facilitating states to undertake reforms in crucial areas like land and labour. Forbes pointed to Andhra Pradesh, Gujarat, Madhya Pradesh and Rajas-

than undertaking labour reforms to ease doing business. He also referred to Rajasthan and Tamil Nadu focusing on land reforms intended to facilitate acquisition for business purposes.

CII has listed a few sectors with high potential for growth, like textiles and garments, which constitute a significant share of exports, electronic hardware, cement, iron and steel, engineering, defence and aerospace.

 

No ‘Connect’ with electronics hardware

Despite years of references to the potential of electronic hardware manufacture, there has been little action on the ground. Tamil Nadu began well with export on the annual ‘Connect’ event. In the early 2000s, there was an explosive growth in the IT, communications and telecom hardware industries in Sriperumbudur and elsewhere. Remember Nokia – Foxconn setting up world class facilities and Nokia emerging the largest manufacturer of cell phones? In quick time, this thrust was lost. Confusion over tax policy and poor industrial relations led to the failure to build on this excellent start. Several electronics units in that complex closed down.

F C Kohli, who headed TCS and triggered the IT boom, has been an ardent advocate of electronic hardware. For over two decades Kohli has been suggesting the nurture of electronic hardware education in around fifty institutes of higher learning and backing these electronic hardware engineers with high volume production of a vast range of electronic hardware and components.

 

Make in India efforts hurt

 

Such an approach also needs tweaking tax policies. I refer to the failure of doing this hurting the Make in India effort by citing the experience of the Dell Computers (DC). This computer giant has set up a unit in Sriperumbudur and produces around 3000 PCs and laptops per day. With several state governments promising free laptops for students, combined with the tremendous growth in demand for these from other sectors, one can imagine the potential for volume production. But, on a visit to this facility, I noticed a few interesting factors: the first is the modest volume of production, of around 3000 per day or around a million a year. Second, the unit provides employment to local women with a higher secondary pass who are quite nimble and efficient.

The matter of concern relates to the very poor, indigenous content: except the CD manual, the sponge and carton used for packing, other items are all imported. Foxconn imports these from Taiwan in CKD packs. Reducing the excise duty from 10 per cent to 2 per cent can trigger manufacture of several components by local units.

Another equally sad experience related to the free mixies and fans offered by Tamil Nadu not resulting in any big orders for Indian manufacturing units. For their low prices, these are imported from China, of indifferent quality.

Forbes and his team at CII should address this issue by encouraging Indian manufacturers to go for high volume production as does China.

 

High capacity, low utilisation, high prices

 

In the Indian context, even in sectors where volumes have been high, the traditional pre-liberalisation habit of cartelisation persists. We have been pointing to such practice in the cement industry: despite a handsome expansion of capacity which is under-utilised, cement prices have been manipulated by cartelisation. We have been pointing to the huge difference in cement prices by such unethical, oligopolistic cartels.

 

Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
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
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com