Friday, August 28, 2009

Textiles from India. Dreams of a Scorpion..

Export. India has always had a problem in finding something to export. At each and every level, what happens is that the government subsidises them so much that it is like subsidising the consumer overseas. The textile industry in India is perhaps the finest example of why we cannot go up the value chain. We are happy with exporting grey cloth and some made-ups. Companies like Arvind Mills go through the revolving door of economic fortunes. When they set up a denim making plant, other poor countries were busy setting up a finished denim making plant! Indian textile has yet to put a single bloody brand in any part of the globe, except a Raymond to cater to NRI's in the middle east.! India does not have any competitive edge in textiles or garments. Why make it a big thing? Instead, why not let the big time fashion designers come in to India, give them free space and let them set up design shops here. Maybe they will also use Indian resources and create some jobs. Do not waste tax payers money by letting mills export commodities at below cost.

Companies like Arvind Mills have cost the exchequer hundreds of crores in terms of bad debts written off by banks as well as export subsidies. India would have been better off without such a company. The only benefits seem to have gone to the founder family, who have been living in style generation after generation, while the workers, bankers and other shareholders bled.

Wonder why the government is still coming out with stupid schemes like allowing them duty free import of capital goods. This will only encourage companies to export below cost. And we will end up exporting power .

It is time we recognised that a rethink on what India can really export, profitably, without any subsidies is possible at all. Otherwise, let us stick to the airconditioned sweat shop model of our so called IT industry, which at least brings in dollars, creates jobs and does not rob peter to pay paul.

India cannot be a viable exporter unless there is power at global costs and of gloabal quality. And the capital to put in. It is also impossible for Indian companies to do away with the propensity to cut corners when it comes to quality. They always think that what is good for the domestic market will do for the global market, which is spoilt for choice.

I would rather that the government let me have basmati rice at 40/- per kg instead of exporting it. Why should I pay Rs.80/- per kg as a domestic consumer? I am subsidising the foreigner and the domestic exporter is a parasite who is living off the others.

It is disgusting to see that everyone is justifying free loading. All in the name of vote bank politics.

Wednesday, August 19, 2009

BJP- The beginning of the end??

With the 'dismissal' of Jaswant Singh, the BJP seems to have axed itself out of contention with a lot of followers who were not with it because of fundamentalism. After the election results in May, LK Advani should have gone. However, he seems to be sticking on like super glue. The party does not have any followers left from outside the Hindu RSS club. At one point, there was great hope that BJP would provide national leadership.
The party has to completely over haul itself. Time to drop the geriatrics like Advani et al and give more power to the likes of Arun Jaitley. Also, the party has to make peace with the RSS, without actually being seen to be fundamentalist. A tough ask, but if the BJP cannot get back to track, it will be a national tragedy.
The Congress is a one (wo)man party. The cabinet is appointed at will and pleasure of the Italian lady. And this party does not have a clear economic agenda, with some of its leaders being seen as reformers (mistakenly so) and the party following a socialist policy apart from dividing the country in to pieces in the name of 'appeasement' of so called minorities. It is the Congress which has used religion as a card, since independence.

Tuesday, August 11, 2009

Swine Flu

Given the apathy and the total lack of ability in the health ministry, I am afraid that the swine flu is going to take a huge toll on India. One state was mentioning that the health ministry does not have a measly sum of under Rs.20 million to buy diagnostic kits!!
Added to government apathy, the bigger contributory factor is the misery of the human race in india. Poor hygeine standards, 'bugger thy neighbour' attitude and the sheer number of the slum dwellers is mind boggling.
The wimp has 'advised' the Health Minister to take 'suitable' action. Shades of "Yes Minister".
Mera Bharat Kahaan

Wednesday, August 5, 2009

(B)ailing airlines

Mr Prannoy Roy made an impassioned plea as to why the government should bail out the private sector airlines!!. Then, I realised that if it goes through, the next in line could be media companies!!
What an idea, Sirjee!!