The Hindu Business Line : Manufacturing strengths

This is with reference to "PM asks CEOs to emulate Chinese growth model" (Business Line, January 23): A careful study would indicate that countries which have forged ahead globally are those that have identified their areas of strength and refrained from plainly copying the approach of other nations. In India, the tendency has been just to view a few countries as role models and then develop the strategies accordingly.

Possibly because of the lack of confidence to operate globally in the competitive manufacturing sector, there has been excessive focus on the services sector, giving the impression that the country has competitiveness only in this sector. However, considering the daunting levels of unemployment and the need to sustain economic and industrial growth, the service sector however big and competent, cannot be a substitute for the manufacturing activity.

It is necessary to reposition the manufacturing sector, commensurate with the strengths and capabilities of the nation. The solution cannot lie in running away from the issues but only in working out the appropriate strategy and facing the ground realities.

Traditionally and over the years, India has developed some sort of an expertise in setting up and operating small-scale units in a variety of sectors. While it is true that a large number of these units have failed in the past, there are also stories of remarkable success and breakthrough.

Unfortunately, in recent times, many seem to think that small level of operations would inevitably be inefficient, and that efficiencies can come only by installing large machineries and setting up capital-intensive projects.

N. S. Venkataraman

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Manufacturing strengths