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