IE HAS BEEN pointing to the imperative for the manufacturing sector to aim at generating surpluses of exports over imports. After liberalisation of the economy, with focus on globalisation, manufacturers made liberal use of imports to expand production. In this process there was the absence of concern for developing indigenous sources for competitive supplies.
View this in the context of the aggressive export thrust of China: it keeps the value of its currency RNB (renminbi) low, built large production volumes and offered a vast range of products cheap. This was also aided by China’s ability to produce raw materials like steel cheap, further aided by low bank credit. Remember China has been the dominant producer of steel. (It accounted for 53.3 per cent of global crude steel production last year.)
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