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