Financial Daily from THE HINDU group of publications
Tuesday, Apr 16, 2002
Industry & Economy
Need for clear manufacturing policy: CII
CHENNAI, April 15
THE Confederation of Indian Industry - Southern Region (CII-SR) wants the States to frame a separate manufacturing sector policy. Highlighting the CII-SR's initiatives in the region for 2002-03, Mr T. Kannan, who has taken over as the CII-SR Chairman, said the organisation would stress the need for a clear manufacturing policy within the ambit of the industrial policy.
In the context of the WTO and increased competition from international players, flexible labour laws, low-cost power and reduced transaction costs were the key to survival. Its theme for the year was `competitiveness through HIT (human resources, infrastructure and technology)'.
The CII-SR would shortly come out with a blue print on the infrastructure available in the southern States and their comparative advantages, he said.
Infrastructure remained a cause for concern and "access to quality power at affordable rates is still a pipe dream,'' he said.
Compared to some of its competitors, including China and Indonesia, Indian industry pays 60 - 70 per cent more on power. The road conditions also were poor.
For instance, in China the turnaround time for trucks doing a 1,400-km stretch between Shanghai and Beijing was 36 hours. In India, it would take much longer.
The country's port infrastructure was also inadequate. Often, international shipping costs were cheaper than transport within the country, he said.
Nurturing its rich human resources potential, infrastructure and the technological base in manufacturing and information technology were imperative to competitiveness.
While these would constitute the focus areas at the regional level, it would influence the economic policies and reforms in labour and agriculture.
Sports would be a new focus area this year. The CII was working with the Andhra Pradesh Government which will host the National Games 2002.
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