The Hindu Business Line : Relax restrictive rules, Indian CEOs tell China

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Relax restrictive rules, Indian CEOs tell China

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Call for more cross investments, technology sharing

BOOSTING INVESTMENT: (From right) Dr K. Anji Reddy, Chairman, Dr. Reddy's Laboratories Ltd; with Ms Li Dang, Director & President, GENERTEC; and Mr R. Seshasayee, President, CII; at the `India - China Economic, Trade & Investment Cooperation Summit' held in Mumbai on Thursday. - Paul Noronha

Mumbai , Nov. 23

Indian CEOs wanted less restrictive regulations in China for doing business there, but they and their Chinese counterparts agreed on the need for more cross investments and technology sharing between the two countries.

This was the general flavour of discussions at the CEO Forum of the India-China Economic, Trade and Investment Cooperation Summit here on Thursday.

Speaking about the pharma sector, Dr Anji Reddy, Chairman of Dr Reddy's Laboratories Ltd, said, "We had set up a manufacturing plant in China some five years ago. But during this period, only one per cent of our revenues from our worldwide operations was from China. This shows that there is so much to be done."

Fewer restrictions

As a first step, the Chinese government should relax excessive rules and regulations hindering smooth business ventures, Mr Reddy said.

The Indian pharmaceutical industry is at the forefront of knowledge-based industries with wide-ranging capabilities in the field of drug manufacturing and technology. China also has a surging pharmaceutical industry, especially in the exports of active pharmaceutical ingredients (APIs); its pharmaceutical industry is the seventh largest globally and is expected to become the world's fifth largest by 2010, he said.

Mr Ravi Kant of Tata Motors requested the Chinese Government to shatter the barriers that hinder Indian auto companies from entering the Chinese markets.

China should adopt an open policy and allow Indian automobile manufacturers enter its markets unconditionally. The Chinese Government should do away with restrictive regulatory norms, Mr Kant added.

"Auto manufacturers and component makers of both the countries should work together in areas of product development, branding and marketing," Mr Kant said.

Confidence building

Ms Li Dang, President of GENERTEC, (a group with diversified interests including exports and imports), said, "Both India and China have complementary skills that would help them to be globally competitive. The first step to becoming more accommodative is to foster mutual understanding between the corporates of both the countries. The respective Governments should play a major role in building confidence among the business fraternity of the two countries."

Mr Huang Tianwen, President of Sinosteel Corporation, spoke about his company's initiatives in India. "Sinosteel is on the lookout for a suitable partner to expand its business in India. We have plans to set up multi-capacity steel mills in India with local partnerships. We are in talks with major Indian companies in this sector, like the Essar Group, Jindal Steel and MMTC regarding this."

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