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

 

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