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The ‘Jayanthi Tax.’ Odisha: spectacular win by Naveen Patnaik Rahman at CIC R Sridhar steps down as CEO of Shriram Capital Put expensive assets created to use... Readers' Mail A glass full of corruption Where is Rajaji? Shipping woes of Chennai companies CII projects higher growth… Tribute – Manikam Ramaswami Recognition to role of NBFCs.... The star of Spencers is no more Tatas moving out of urea production... No mega rail project for Tamil Nadu The Jan Dhan bonanza Tribute Godspeed, Chief Minister JJ IAS invades NDDB... A Grand Finale for SN’s MS centenary at the US… Marketing expert Balagopal is no more Online not in line with brick and mortar businesses... A more liberated TN… Pharma – overdose of copying Sweet news for TN sugar mills Land reclamation from sea appears cheaper! Airlines in India: cost and space Funding the un-funded Scientists urged to take up farmer-oriented research The balancing act West Bengal: mindless malignancy Music happens Five star activism stalls development activity Fuel for thought The ‘Ayyo-yes’ is no more How Air-India loses customs... He continues the focus on social amelioration Should we change the official year? Adharma of opposition politics Maximising the micro pricing … Mersal magnified Make standards certification mandatory... B H Kothari - a tribute A C Muthiah – his munificent bequeaths to science Limit foreign borrowings to hi-tech, export potential projects... Banning booze... The Swadeshi Trump Boy, can you beat these? Tribute – M V Murugappan Engineering seats go abegging Contrarian cousins SoA @ 80 Measuring roof tops in terms of KW/MW Delhi returns to BJP A proud Madrasi The Gulf aviation boom Why this malaise in medical education? 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Dr C Rangarajan returns to Chennai Modi storms Silicon Valley S V Raju – a ‘good’ true liberal Towards speedy justice Computation of GDP – conundrums continue Liberal imports idling indigenous capacities Preserving for the future For whom the bell tolls? EVM is tamper-proof An inexplicable neglect Wanted: a second airport for Chennai Gas is the way forward Inflation: are we emulating Argentina and Brazil? When TN politicians can emulate Kerala's Kinetic Karnataka Fall in crude prices help in oil sector reform Why land prices zoom in TN? Cleaning Ganga – relocate tanneries and install electric crematoria Editor's Notes F C Kohli - his concerns all embracing Not just in-laws (and outlaws); they’ve renowned academics at the helm! Cement prices continue to rise… When the President was rendered homeless… Eternal support for capitalisation of PS banks Of course, Gujarat is vibrant 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 The why of tax incentives Naidu will soon build a new Hyderabad Delhi is distant L&T: focus on infrastructure and more infrastructure… Tax agriculture The power-full Hindujas A friendly business group Convulsions in The Hindu Colour-Chem’s colourful KRVS Road development slows down Padma Bhushan for A Ramakrishna Delhi Chalo... Excel Generators provide the vital back-up Paytm karo... Quality silica from Neyveli The sea- saw battle continues... More tributes to GR Russi Mody – a tribute Welcome changes that testify to Jayalalithaa’s return to health Making ‘my Amaravati’... Valli, they are more marginalised Parliament in paralysis... 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Welcome GST Welcome thrust on trade in Modi’s foreign visits... Which side are you, Montek? TIAM turns a full cycle This scant respect for Law Diamond jubilee of Egmore Samskrt School Mu Sigma – is no more TN accounts for the largest recruits by the IT sector Bihar – Nitish Kumar adopts the Lalu model Multi-faceted Venkat Tihar, Puzhal not different from Parappana Agrahara Haul over the coal China invests in India Like Hinduism: many paths to reach God... Permanent secretariat for TN GIM Revive development banks... PPP mode for upgrading Corporation Hospitals CSR and CMI: promise of another Srinivasan Ramanujan... Muffled voices for merit… Increasing non co-operation of state leaders Demise of a media baron... Lalu’s envy, India’s pride Poor quality of university VCs There was flood of milk. Reason: no milk commissioner! A welcome initiative by the judiciary A yen for wastage… Naidu’s return augurs well for Seemandhra Don’t seem to feel the pulse… Discoms deserve better… A think tank for Chennai Silver Years of Madras Musings Breaththrough in malaria control WTO Meet: resolved to meet again Kulandai was a giant
 
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.

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