No Fairplay

LETTERS TO THE EDITOR

In the report Corporates must ruthlessly assess arms to survive competition(February 12), on the challenges being faced by domestic companies, the writer has highlighted only one of the many problems being faced by these companies. The problem of retaining senior managerial level people is just the tip of the iceberg. India lacks basic infrastructure facility needed for the healthy growth of industries. In spite of these deterrents, Indian companies have till now managed to survive and do business. But owing to economic reforms, the floodgates have been opened to foreign competition and now their very survival is under threat.

 

The power situation in the country is not worth talking about, the tariff is amongst the highest in the world and freight still remains a problem area. While Indian companies are still facing these problems, the government has gone ahead with its half-baked policies, liberalising import of finished products and tightening the noose on raw material import. As a result, India has become everyones favourite dumping ground.

It has become cheaper to import used products like paper, surgical disposables and caustic soda among other things. The depreciation of the Southeast Asian currencies has made matter worse. The technology used by the domestic industry needs to be upgraded, but companies are faced with exorbitant duties on machines and tools, they dont have much choice but to continue with outdated technology.

How come these problems never get media or expert attention when they discuss the challenges ahead.