The Hindu Business Line : PM exhorts industry to be competitive

"Indian business professionals and skilled workers are not afraid of globalisation. They are willing to test their skills and sell their wares in the wide global market."

The Prime Minister, Dr Manmohan Singh, with the Chief Minister of West Bengal, Mr Buddhadeb Bhattacharjee, and the Union Minister for Commerce and Industry, Mr Kamal Nath, at the inauguration of India International Trade Fair 2005 in the Capital on Monday. - Ramesh Sharma

New Delhi , Nov. 14

THE Prime Minister, Dr Manmohan Singh, on Monday asked the Indian industry to become more competitive globally by investing in research and development, managerial skills and global economies of scale, especially as markets get integrated across the world.

Inaugurating here the flagship event of the India Trade Promotion Organisation, the India International Trade Fair (IITF), the 25th in an annual series, at the Pragati Maidan complex, Dr Singh said the fact that 7,500 enterprises from India and abroad are taking part in this year's fair was evidence enough to "the robust health of Indian economy and in particular our industry and an affirmation of the tremendous market potential that our country has to offer to the rest of the world."

He said the country was proud of the achievements of its entrepreneurs and asserted, "Indian business professionals and skilled workers are not afraid of globalisation. They are willing to test their skills and sell their wares in the wide global market."

Globalisation irreversible: Pointing out that the trend of globalisation was an irreversible one and "we cannot and we should not shy away from it," the Prime Minister said India should prepare itself for "greater integration with the evolving world economy." He said that in order to become part of the emerging globalised world, the Government was committed to bringing tariffs down to Asean levels.

"We are also working actively to bring the economies of South and South-East Asia closer. We are on the threshold of unveiling an India-Asean Free Trade Area and the South Asia Free Trade Area will come into effect from the coming new year.

"Our efforts to create an Asian Economic Community and to also become members of the Asia-Pacific Economic Cooperation, keeping in mind the requirements of domestic employment and enterprise, will bring us closer to the major economies of the world," Dr Singh said.

Fighting poverty: The Prime Minister contended that his Government was determined to reverse illiteracy, ill-health, low incomes, poverty, infrastructure and the constraints of inadequate investment in people and their capabilities. He said there were no external constraints to India's growth.

Referring to the main themes of the fair `Infrastructure — Power and Communications', the Prime Minister underscored the need to address major policy and implementation issues in the power and coal sectors. He emphasised the need to improve the financial health of power distribution companies.

"We need to focus on making our SEBs viable, healthy and efficient. On their health depends the investment climate in the power generation sector. I hope this matter engages the attention of all State governments as shortage of power can handicap them critically in their quest for growth", Dr Singh noted.

Pushing exports target: In his welcome remarks, the Union Commerce & Industry Minister, Mr Kamal Nath, said he was encouraging exporters to take the country's merchandise exports to a level of $100 billion in the current financial year, even as the target was $93 billion. Over and above this, India's services exports this year could touch $50 billion.

He said, "Enhanced exports are the quickest way to increase employment in our urban, semi-urban and even rural areas.

The IITF is a catalyst, an effective flagship medium in achieving our trade goals", he said.

Mr Kamal Nath also said the country's merchandise exports registered a record growth of nearly 28 per cent last month by crossing $8 billion, which was 28 per cent higher than the level of $6.3 billion in October 2004.

Total exports during April-Oct 2005 amounted to $51 billion, representing a cumulative growth of over 22 per cent during the same period last year.

Imports during the period amounted to $50 billion with oil importing being valued at almost $25 billion.

The Chief Minister of Uttaranchal, Mr N.D. Tiwari, the Chief Minister of West Bengal, Mr Buddhadeb Bhattacharjee, the Chief Minister of Assam, Mr Tarun Gogoi, the Minister of State for Commerce & Industry, Mr Elangovan, and senior officials of the Commerce Ministry and diplomats from different countries took part in the inaugural.

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