The Hindu Business Line : Call to strengthen manufacturing sector

The State Government has to focus on developing the manufacturing sector, as it is the only area that could generate employment for the largest number of less educated people who constitute the majority of the unemployed in the State, said Mr N. Sreekumar, President, Cochin Chamber of Commerce and Industry.

Mr Kumar told Business Line that the hi-tech industries such as IT and service sectors such as health and tourism could create more jobs but the beneficiaries of these sectors would mainly be highly qualified, skilled and, to some extent, semi-skilled people. To find employment for the large number of semi-skilled and less qualified, there is a need to strengthen and develop the manufacturing sector, he said.

It need not be based on the raw materials available in the State. Like in Japan, for instance, raw material could be brought in for manufacturing value-added end products. Textiles, metal, engineering products etc could be some of the areas, in addition to the traditional sectors.

"When we talk about the growth of Banglore, Hyderabad and Chennai as the IT destinations in the country, we should not lose sight of the fact that these cities have an equal, or stronger, base of manufacturing industries," Mr Kumar said.

For the promotion of such industries and to attract investors, the government should become the facilitator by creating the required infrastructure and support services while initiating measures to change the work culture, he said.

HIGH WAGES

The wage levels in Kerala are the highest when compared to other States. The bargaining process of trade unions results in low productivity. In addition, there are labour problems such as "ghost money" and `nokku coolly' etc.

Mr Kumar also alluded to the `bandh' culture in the Sate. When West Bengal did not call for a hartal to protest against the hike in fuel prices, two days were lost in Kerala on this account.

Too much of initial bargaining, labour demands for loading and unloading etc should be handled prudently to arrive at acceptable wage levels, he said.

The emphasis of the government needs to be wealth creation and increase in the income generated from within the State. Only then would there be a corresponding economic growth with sustained physical quality improvement in the State, he said.

Besides, there should be land available for setting up industry at affordable costs. The single-window clearance system should be effective and timely. Power needs to be provided to energy intensive units at affordable cost.

High power cost downed the shutters of the Hindalco's smelter unit about three years ago, he pointed out.

PRIVATISATION

On the other hand, as the West Bengal Government has done, unviable public sector units need to be privatised so that the existing employment could be protected, he said. Besides, to improve the performance of the State-owned units, there is a need to professionalise its management. "Even creation of a management cadre could be considered for the public sector units and enterprises," he said.

There are also other potential avenues where the State could capitalise with its abundant resource of technical manpower, such as IT hardware, software and biotechnology sectors.

While the State Government needs to function as an effective and strong facilitator and support source, the trade union leaders need to educate the workers of their responsibility, said Mr Sreekumar, who heads the Kerala operations of the Apollo Tyres. Hence, there needs to be a focussed attention with a clear vision and long-term commitment, he added.

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