The governments role should be confined to social and physical infrastructure in the emerging economic scenario, according to a seminar of industrialists, including the public sector navaratnas, yesterday.
The seminar scrutinised Bombay Clubs stand on entry of multinationals, and taking note of the Prime Ministers favourable disposition to some of the suggestions, the delegates felt protection or subsidy would have to go, if the industry was to compete globally.
The two-day seminar, convened by the Centre for Organisation Development is being attended by former SAIL Chairman V Krishnamurty, Global Trust Bank chairman Ramesh Gelli, Nagarjuna Group chief executive K S Raju, and executive directors from several public and private sector enterprises.
Former commerce secretary A V Ganesan, who set the tone for the discussions in his key note address, sought to dispel misconceptions that globalisation was being driven by the World Trade Organisation (WTO), the World Bank or the International Monetary Fund, or even the developed countries.
He said improved production facilities and technology, especially Infotech which enabled the industry to access the market with a competitive edge, were driving the process.
Ganesan, who heads one of the core groups of WTO, said no power, including the US, could stop the process. Only its ethical aspect and inequities in WTO agreements could be questioned.
In this process, protectionism and subsidies had no role. The companies should seek only a judicious policy mix with investment support for technology upgradation, rather than higher import duties and tariff regulation, he said.
Referring to the navaratna status awarded to some public sector enterprises, Ganesan said the process should not end with autonomy, but extend to reforms in their functioning, which affects the basic character and the objectives of the public sector.
Public enterprises selection board chairman N Vittal described the Bombay Clubs demand for a level playing field as another form of protection.
The industry should prepare itself to meet competition by benchmarking international standards for competition rather than seeking protection. He suggested an alliance between the industry and the government to help the enterprise become strong and competitive. He cited South Korea and Japan as examples, where such strategic alliances had helped in a big way.
Hewlett Packard (India) president Suresh Rajpal made a presentation on the case study of his company to show how it emerged as a major player in info tech sector.
Shell vice-president Howard Shields explained how despite being a multinational, Shell too was vulnerable to fallouts of globalisation. They had reconciled to the TINA (there is no alternative) concept and were trying to fall in line, he said.
