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

Prime Minister Modi’s Make in India exhortation makes great sense. The country has capabilities to produce many of its requirements on its own. 

Unfortunately, policymakers do not spend the needed attention to ensure such capacities created are fully utilised. We see the spectacle of a large number of industrial units – steel, power equipment, cement, automobiles... performing to a fraction of their capacities. This depresses interest in investments for creating new capacity.  We have a grim situation.

BHEL recorded huge expansion of capacity to provide 20,000 MW of power equipment per annum. The Tiruchi unit and its satellites had a record production, valued around Rs 20,000 crore, during 2012-13. Other renowned companies like Mitsubishi, Toshiba and Alstom invested on creating capacity for power equipment manufacture that would enable the country to meet demand for such equipment in full.

Yet one witnesses a curious spectacle of China, Korea, Japan and other countries dumping their products into India at lower prices. In recent times we also witness Chinese companies successfully contesting contracts awarded to BHEL in the Madras High Court leading to the cancellation of orders placed on BHEL.

A similar spectacle is witnessed in regard to steel. The industry riding on the post 2000 boom made handsome investments. A capacity for around 115 million tonnes has been created; but simultaneously the clamour for imports has also increased. One witnesses again the sad spectacles of capacity created at great expense remaining under-utilised and exports on the increase.

Consistent with WTO commitments there is need for a mechanism to ensure indigenous industry is provided a measure of encouragement and even protection to perform to capacity. This in due course will lead to investments to expand capacity and hence support the Prime Minister’s Make in India slogan meaningful.

Author :
Reported On :
Sector :
Shoulder :
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
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236