SlideShare ist ein Scribd-Unternehmen logo
1 von 17
Downloaden Sie, um offline zu lesen
Rejuvenating Indian Manufacturing Base and
         Lessons from Chinese Miracle
    -B.V.Raghunandan, SVS College, Bantwal




Post Graduate Department of Commerce
     University College, Mangalore
            March 14, 2013
India and China: Similar History and
           Different Journeys
• India was liberated from British Rule in 1947
  and People’s Republic of China was founded in
  1949
• India became a Republic with the idea of
  Socialistic Pattern of Society and China
  became a single party communist state
• India adopted mixed economy and China
  adopted state ownership of everything including
  land
Political Leadership

   • Nehru caused
     the Public
     Sector
   • Mao gave
     importance to
     agriculture,
     and Defence
   • 1962
     Humiliation in
     War
Indian Industry: Initial Stage




• Growth of Public Sector
• Family Owned Business comprising Private Sector
• License Raj and a Land of Shortages
• Bureaucracy and its Suspicious and Vindictive Attitude Towards
  Private Business
• Politicised Co-operative Sector
• Many Instances of Black Economic History
• Sluggish Exports, Growing imports and Deficit Economy
Chinese Industry: Initial Stage
• Economy of Deprivation & Self Sufficient
• Conservation of Resources
• Huge Amount Spent on Defence
• Piling Up Nuclear Arsenal including Hydrogen
  Bombs
• Industrial Production was less than the Bare
  Minimum
• Totally Regulated and Centrally Planned
  Economy
• Became a Superpower
Indian Fiasco
•   Slow Growth Rate
•   Inefficient Public Sector
•   Corrupt Government
•   Killing Tax Rates
•   Black Money
•   Energy Crisis
•   Lack of Investible Funds
•   1968-a Shameful Year
•   1990-Another Shameful Year
•   Industrial Policy was Defective
•   Only Traditional Exports
Defective Industrial Policy
• High Tax Rates
• No License for Expansion
• Powerful MRTP Act &
  Commission
• Traditional Family Owned
  Business dominated the
  industrial scene
• Poor Infrastructure
• Delay in Completion of
  Power Projects
• Generation &
  Transmission-Govt
  Monopoly
Game Changers




•   Remittance from 1976 from Gulf NRIs
•   Government could Liberalise Import Policy
•   Industrial Raw Materials became available more
•   Growth of Reliance Industries
•   Capital Market becoming a Household Investment
•   EPZs and Tax Holidays
•   Housing Finance by HDFC
•   Rajiv Gandhi’s First Dose of Liberalisation in 1984
Chinese Game Changers
• Death of Mao Ze Dong in
  1976
• He left China as a unitarian
  monolith of single party
  communist ruled
• Mass Poverty and
  Deprivation
• Conserved Resources
• Only Country in the world
  without exports and imports
• The biggest Red Army in the
  world
• A Thermo-nuclear Power
Rise of a Socialistic Market Economy
                   • Deng Xiao Ping became the
                     Chief Economic Advisor
                   • Proposed a Market
                     Economy
                   • More Industrialisation
                   • Invitation of Foreign
                     Investment to a Limited
                     Extent
                   • Pirate Economy
                   • Building up Database
                   • 1980s saw Gorbachev in
                     USSR and Deng in China
                   • Became angels of Market
                     Liberalisation
Rajiv Gandhi’s Liberalisation
               • In automobiles,
                 telecommunication,
                 education
               • Liberalising
                 Licensing Policies
               • Tax Rates were
                 brought down
               • Encouragement for
                 Exports
               • Sam Pitroda was the
                 Advisor
Debacle of 1990s
• Foreign Exchange Reserves dipped to a
  low of 7 days’ import requirements
• RBI pledged its gold reserves with Bank of
  England
• Tax Revenue was low
• Industrial Growth became sluggish
• Wheels of Fortune turned against India
• Blame was on the first dose of
  liberalisation
Liberalisation 1991
•   Lower Tax Rates
•   Easier Licensing Policy
•   Diluting PSU Monopoly
•   Disinvestment
•   Banking Sector Reforms
•   Capital Market Reforms
•   SEBI and other Regulatory
    Bodies
•   Forex Management
•   Media Reforms
•   Opening up
    Telecommunications
•   Opening up Insurance
    Sector
Policy Dithering
•   Self-Cancellation Policies
•   Bureaucratic Mindset
•   Lack of Firmness
•   Lack of Unity of Command
•   Lack of Ministerial Stability
•   Still suspicion on Industries
•   Lack of Planning and all Management
    Strategies
Policy Variations
• China has Clear Cut Policies
• India changes Policies very often
• China believes in Manufacturing whereas India is betting on
  Service Industries
• China invested in hardware industries, whereas India was
  preoccupied with software Industries
• China believes in penetrating every market in every foreign
  country-India gets preoccupied with a few sectors
• Trade Surplus and Trade Deficit
• Cheaper Yuan and Tendency to Make Indian Rupee Costlier
• Growth Vs Inflation-Rates of Interest
• Cost Wonder and High Cost Economy
• Monitoring Project Execution
• Investing in Infrastructure
India’s Agenda
• Further Encouragement to Export Industries
  with a Guarantee of Non-Withdrawal
• Further Reduction of Taxation on the same
  Footing as IT Industry
• Encouraging Research in Industries where
  Chinese Products are Flooding Indian Market
• 24x7 power supply to industries-dedicated
  terminals
• Government Assuming the Role of Managing
  Industrial Pollution through outsourcing
THANK YOU

Weitere ähnliche Inhalte

Was ist angesagt?

Korea Economic Development
Korea Economic DevelopmentKorea Economic Development
Korea Economic DevelopmentTri Tran
 
Wto and its impact on indian agriculture, avikal
Wto and its impact on indian agriculture, avikalWto and its impact on indian agriculture, avikal
Wto and its impact on indian agriculture, avikalAvikal Arya
 
Impact of WTO on Indian agriculture
Impact of WTO on Indian agricultureImpact of WTO on Indian agriculture
Impact of WTO on Indian agricultureDevegowda S R
 
Industrial policy
Industrial policyIndustrial policy
Industrial policydomsr
 
Manufacturing industry boom in Pakistan by Backstreet Boys
Manufacturing industry boom in Pakistan by Backstreet Boys    Manufacturing industry boom in Pakistan by Backstreet Boys
Manufacturing industry boom in Pakistan by Backstreet Boys Ishtiaq Bhatti
 
Population Control in China and India/ Econ. Rise of Asia
Population Control in China and India/ Econ. Rise of AsiaPopulation Control in China and India/ Econ. Rise of Asia
Population Control in China and India/ Econ. Rise of Asiajpate55
 
Industrial policy 1980 to till
Industrial  policy 1980 to tillIndustrial  policy 1980 to till
Industrial policy 1980 to tillSunil Chichra
 
Critical analysis of industrial policy
Critical analysis of industrial policyCritical analysis of industrial policy
Critical analysis of industrial policyMj Payal
 
Lecture 04 Meiji 2 & 3
Lecture 04 Meiji 2 & 3Lecture 04 Meiji 2 & 3
Lecture 04 Meiji 2 & 3Rayman Soe
 
ppt on Industrial policy
ppt on Industrial policyppt on Industrial policy
ppt on Industrial policyCodelaxy Ltd.
 
Exports as an Engine of Growth
Exports as an Engine of GrowthExports as an Engine of Growth
Exports as an Engine of GrowthRajat Mittal
 

Was ist angesagt? (18)

Wto and india
Wto and indiaWto and india
Wto and india
 
Korea Economic Development
Korea Economic DevelopmentKorea Economic Development
Korea Economic Development
 
Wto and its impact on indian agriculture, avikal
Wto and its impact on indian agriculture, avikalWto and its impact on indian agriculture, avikal
Wto and its impact on indian agriculture, avikal
 
Impact of WTO on Indian agriculture
Impact of WTO on Indian agricultureImpact of WTO on Indian agriculture
Impact of WTO on Indian agriculture
 
Industrial policy
Industrial policyIndustrial policy
Industrial policy
 
Branding Singapore
Branding SingaporeBranding Singapore
Branding Singapore
 
Industrial policy
Industrial policyIndustrial policy
Industrial policy
 
Gats india
Gats indiaGats india
Gats india
 
Manufacturing industry boom in Pakistan by Backstreet Boys
Manufacturing industry boom in Pakistan by Backstreet Boys    Manufacturing industry boom in Pakistan by Backstreet Boys
Manufacturing industry boom in Pakistan by Backstreet Boys
 
Population Control in China and India/ Econ. Rise of Asia
Population Control in China and India/ Econ. Rise of AsiaPopulation Control in China and India/ Econ. Rise of Asia
Population Control in China and India/ Econ. Rise of Asia
 
Industrial policy 1980 to till
Industrial  policy 1980 to tillIndustrial  policy 1980 to till
Industrial policy 1980 to till
 
Critical analysis of industrial policy
Critical analysis of industrial policyCritical analysis of industrial policy
Critical analysis of industrial policy
 
Lecture 04 Meiji 2 & 3
Lecture 04 Meiji 2 & 3Lecture 04 Meiji 2 & 3
Lecture 04 Meiji 2 & 3
 
ppt on Industrial policy
ppt on Industrial policyppt on Industrial policy
ppt on Industrial policy
 
Industrial policy
Industrial policyIndustrial policy
Industrial policy
 
Exports as an Engine of Growth
Exports as an Engine of GrowthExports as an Engine of Growth
Exports as an Engine of Growth
 
Industrial policy
Industrial policyIndustrial policy
Industrial policy
 
Industrial policy of India
Industrial policy of India Industrial policy of India
Industrial policy of India
 

Andere mochten auch

Leverage as a financial perversion b.v.raghunandan
Leverage as a financial perversion b.v.raghunandanLeverage as a financial perversion b.v.raghunandan
Leverage as a financial perversion b.v.raghunandanSVS College
 
powerpoint,persentase,blog
powerpoint,persentase,blogpowerpoint,persentase,blog
powerpoint,persentase,blogguestaec05c4
 
瑪法達2010星座運勢大預言預言
瑪法達2010星座運勢大預言預言瑪法達2010星座運勢大預言預言
瑪法達2010星座運勢大預言預言Wizard Avatar
 
6 Hubungan Cahaya Tanaman
6 Hubungan Cahaya Tanaman6 Hubungan Cahaya Tanaman
6 Hubungan Cahaya Tanamanguestaec05c4
 
The 4 Blue Difference
The 4 Blue DifferenceThe 4 Blue Difference
The 4 Blue Differencejamieloft
 
Idea Generation-B.V.Raghunandan
Idea Generation-B.V.RaghunandanIdea Generation-B.V.Raghunandan
Idea Generation-B.V.RaghunandanSVS College
 
Budaya melayu adat perkahwinan 1
Budaya melayu adat perkahwinan 1Budaya melayu adat perkahwinan 1
Budaya melayu adat perkahwinan 1bmamirah
 
LifeCollege SY2015-2016 InfoBulletin
LifeCollege SY2015-2016 InfoBulletinLifeCollege SY2015-2016 InfoBulletin
LifeCollege SY2015-2016 InfoBulletinLifeCollege
 
EDLD 5306 Powerpoint Presentation
EDLD 5306 Powerpoint PresentationEDLD 5306 Powerpoint Presentation
EDLD 5306 Powerpoint PresentationLamar University
 
Working Capital Management-B.V.Raghunandan
Working Capital Management-B.V.RaghunandanWorking Capital Management-B.V.Raghunandan
Working Capital Management-B.V.RaghunandanSVS College
 
Bridging the gap between b schools and industry-b.v.raghunandan
Bridging the gap between b schools and industry-b.v.raghunandanBridging the gap between b schools and industry-b.v.raghunandan
Bridging the gap between b schools and industry-b.v.raghunandanSVS College
 
Capital Market and Investment Avenues-B.V.Raghunandan
Capital Market and Investment Avenues-B.V.RaghunandanCapital Market and Investment Avenues-B.V.Raghunandan
Capital Market and Investment Avenues-B.V.RaghunandanSVS College
 
Alexander tanford
Alexander tanfordAlexander tanford
Alexander tanforddasoterio
 
Informative
InformativeInformative
Informativerowlett1
 

Andere mochten auch (20)

Leverage as a financial perversion b.v.raghunandan
Leverage as a financial perversion b.v.raghunandanLeverage as a financial perversion b.v.raghunandan
Leverage as a financial perversion b.v.raghunandan
 
Photography and graphic manipulation
Photography and graphic manipulationPhotography and graphic manipulation
Photography and graphic manipulation
 
powerpoint,persentase,blog
powerpoint,persentase,blogpowerpoint,persentase,blog
powerpoint,persentase,blog
 
瑪法達2010星座運勢大預言預言
瑪法達2010星座運勢大預言預言瑪法達2010星座運勢大預言預言
瑪法達2010星座運勢大預言預言
 
6 Hubungan Cahaya Tanaman
6 Hubungan Cahaya Tanaman6 Hubungan Cahaya Tanaman
6 Hubungan Cahaya Tanaman
 
The 4 Blue Difference
The 4 Blue DifferenceThe 4 Blue Difference
The 4 Blue Difference
 
Intro to Android
Intro to AndroidIntro to Android
Intro to Android
 
Idea Generation-B.V.Raghunandan
Idea Generation-B.V.RaghunandanIdea Generation-B.V.Raghunandan
Idea Generation-B.V.Raghunandan
 
賽斯說 信念 1
賽斯說  信念 1賽斯說  信念 1
賽斯說 信念 1
 
Budaya melayu adat perkahwinan 1
Budaya melayu adat perkahwinan 1Budaya melayu adat perkahwinan 1
Budaya melayu adat perkahwinan 1
 
LifeCollege SY2015-2016 InfoBulletin
LifeCollege SY2015-2016 InfoBulletinLifeCollege SY2015-2016 InfoBulletin
LifeCollege SY2015-2016 InfoBulletin
 
Bm 1 thn 3
Bm 1 thn 3Bm 1 thn 3
Bm 1 thn 3
 
Talent Reach Company Profile
Talent Reach Company ProfileTalent Reach Company Profile
Talent Reach Company Profile
 
EDLD 5306 Powerpoint Presentation
EDLD 5306 Powerpoint PresentationEDLD 5306 Powerpoint Presentation
EDLD 5306 Powerpoint Presentation
 
Working Capital Management-B.V.Raghunandan
Working Capital Management-B.V.RaghunandanWorking Capital Management-B.V.Raghunandan
Working Capital Management-B.V.Raghunandan
 
Bridging the gap between b schools and industry-b.v.raghunandan
Bridging the gap between b schools and industry-b.v.raghunandanBridging the gap between b schools and industry-b.v.raghunandan
Bridging the gap between b schools and industry-b.v.raghunandan
 
Capital Market and Investment Avenues-B.V.Raghunandan
Capital Market and Investment Avenues-B.V.RaghunandanCapital Market and Investment Avenues-B.V.Raghunandan
Capital Market and Investment Avenues-B.V.Raghunandan
 
賽斯說 找信念
賽斯說  找信念賽斯說  找信念
賽斯說 找信念
 
Alexander tanford
Alexander tanfordAlexander tanford
Alexander tanford
 
Informative
InformativeInformative
Informative
 

Ähnlich wie Rejuvenating indian manufacturing industries b.v.raghunandan

Issues in Pakistan Industry
Issues in Pakistan IndustryIssues in Pakistan Industry
Issues in Pakistan IndustrySaroosh Zahid
 
Current account deficit and indian economy b.v.raghunandan
Current account deficit and indian economy b.v.raghunandanCurrent account deficit and indian economy b.v.raghunandan
Current account deficit and indian economy b.v.raghunandanSVS College
 
New microsoft office power point presentation
New microsoft office power point presentationNew microsoft office power point presentation
New microsoft office power point presentationniralic
 
relation between economics and politics
relation between economics and politicsrelation between economics and politics
relation between economics and politicsMegha Chawla
 
Role of Advertising in Indian Economy
Role of Advertising in Indian EconomyRole of Advertising in Indian Economy
Role of Advertising in Indian EconomyM.V.L.U. COLLEGE
 
Impact of globalisation on business, government and society
Impact of globalisation on business, government and societyImpact of globalisation on business, government and society
Impact of globalisation on business, government and societygeoffrey-cip
 
China overview
China overviewChina overview
China overviewAdam Jones
 
LPG1991, NEP of India, Zilingo, Pre reforms scenario
LPG1991, NEP of India, Zilingo, Pre reforms scenario LPG1991, NEP of India, Zilingo, Pre reforms scenario
LPG1991, NEP of India, Zilingo, Pre reforms scenario PROF. PUTTU GURU PRASAD
 
Global competitivebusinessnov04
Global competitivebusinessnov04Global competitivebusinessnov04
Global competitivebusinessnov04Dhriti Chopra
 
India china trade relation
India china trade relationIndia china trade relation
India china trade relationTanviGogri
 
lecture 6SWOT of Iindian economy (1).pptx
lecture  6SWOT  of Iindian economy (1).pptxlecture  6SWOT  of Iindian economy (1).pptx
lecture 6SWOT of Iindian economy (1).pptxKartikSharma301848
 
Globalizatio in india (IB)
Globalizatio in india (IB)Globalizatio in india (IB)
Globalizatio in india (IB)Aishwarya V Nair
 
Make in india challenges and prospects
Make in india  challenges and prospectsMake in india  challenges and prospects
Make in india challenges and prospectsGeorgi Mathew
 
economicreformsinindia-1-161003125253.pdf
economicreformsinindia-1-161003125253.pdfeconomicreformsinindia-1-161003125253.pdf
economicreformsinindia-1-161003125253.pdfSagarShah193826
 

Ähnlich wie Rejuvenating indian manufacturing industries b.v.raghunandan (20)

Issues in Pakistan Industry
Issues in Pakistan IndustryIssues in Pakistan Industry
Issues in Pakistan Industry
 
India in 1990
India in 1990India in 1990
India in 1990
 
Current account deficit and indian economy b.v.raghunandan
Current account deficit and indian economy b.v.raghunandanCurrent account deficit and indian economy b.v.raghunandan
Current account deficit and indian economy b.v.raghunandan
 
Globalization India
Globalization IndiaGlobalization India
Globalization India
 
New microsoft office power point presentation
New microsoft office power point presentationNew microsoft office power point presentation
New microsoft office power point presentation
 
relation between economics and politics
relation between economics and politicsrelation between economics and politics
relation between economics and politics
 
ppt on fdi
ppt on fdi ppt on fdi
ppt on fdi
 
Role of Advertising in Indian Economy
Role of Advertising in Indian EconomyRole of Advertising in Indian Economy
Role of Advertising in Indian Economy
 
Impact of globalisation on business, government and society
Impact of globalisation on business, government and societyImpact of globalisation on business, government and society
Impact of globalisation on business, government and society
 
China overview
China overviewChina overview
China overview
 
LPG1991, NEP of India, Zilingo, Pre reforms scenario
LPG1991, NEP of India, Zilingo, Pre reforms scenario LPG1991, NEP of India, Zilingo, Pre reforms scenario
LPG1991, NEP of India, Zilingo, Pre reforms scenario
 
Global competitivebusinessnov04
Global competitivebusinessnov04Global competitivebusinessnov04
Global competitivebusinessnov04
 
Echols 2.3
Echols 2.3Echols 2.3
Echols 2.3
 
India china trade relation
India china trade relationIndia china trade relation
India china trade relation
 
lecture 6SWOT of Iindian economy (1).pptx
lecture  6SWOT  of Iindian economy (1).pptxlecture  6SWOT  of Iindian economy (1).pptx
lecture 6SWOT of Iindian economy (1).pptx
 
Globalizatio in india (IB)
Globalizatio in india (IB)Globalizatio in india (IB)
Globalizatio in india (IB)
 
Make in india challenges and prospects
Make in india  challenges and prospectsMake in india  challenges and prospects
Make in india challenges and prospects
 
Indian economy
Indian economyIndian economy
Indian economy
 
Economic reforms in india
Economic reforms in indiaEconomic reforms in india
Economic reforms in india
 
economicreformsinindia-1-161003125253.pdf
economicreformsinindia-1-161003125253.pdfeconomicreformsinindia-1-161003125253.pdf
economicreformsinindia-1-161003125253.pdf
 

Mehr von SVS College

Entrepreneurship b.v.raghunandan
Entrepreneurship b.v.raghunandanEntrepreneurship b.v.raghunandan
Entrepreneurship b.v.raghunandanSVS College
 
Case study for Class Room Teaching- B.V.Raghunandan
Case study for Class Room Teaching- B.V.Raghunandan Case study for Class Room Teaching- B.V.Raghunandan
Case study for Class Room Teaching- B.V.Raghunandan SVS College
 
Finance sector reforms development finance-b.v.raghunandan
Finance sector reforms development finance-b.v.raghunandanFinance sector reforms development finance-b.v.raghunandan
Finance sector reforms development finance-b.v.raghunandanSVS College
 
Financial leverage as the balance sheet polluter b.v.raghunandan
Financial leverage as the balance sheet polluter b.v.raghunandanFinancial leverage as the balance sheet polluter b.v.raghunandan
Financial leverage as the balance sheet polluter b.v.raghunandanSVS College
 
Indian banking and financial inclusion b.v.raghunandan
Indian banking and financial inclusion b.v.raghunandanIndian banking and financial inclusion b.v.raghunandan
Indian banking and financial inclusion b.v.raghunandanSVS College
 
Professional ethics b.v.raghunandan
Professional ethics b.v.raghunandanProfessional ethics b.v.raghunandan
Professional ethics b.v.raghunandanSVS College
 
Ugc choice based common curriculum b.v.raghunandan-ugc
Ugc choice based common curriculum b.v.raghunandan-ugcUgc choice based common curriculum b.v.raghunandan-ugc
Ugc choice based common curriculum b.v.raghunandan-ugcSVS College
 
Budget 2015 16 and fundamentals of union budget-b.v.raghunandan
Budget 2015 16 and fundamentals of union budget-b.v.raghunandanBudget 2015 16 and fundamentals of union budget-b.v.raghunandan
Budget 2015 16 and fundamentals of union budget-b.v.raghunandanSVS College
 
Capital structure b.v.raghunandan
Capital structure b.v.raghunandanCapital structure b.v.raghunandan
Capital structure b.v.raghunandanSVS College
 
Entrepreneurship in the it era b.v.raghunandan
Entrepreneurship in the it era b.v.raghunandanEntrepreneurship in the it era b.v.raghunandan
Entrepreneurship in the it era b.v.raghunandanSVS College
 
Analysis of society vis a vis advertising-b.v.raghunandan
Analysis of society vis a vis advertising-b.v.raghunandanAnalysis of society vis a vis advertising-b.v.raghunandan
Analysis of society vis a vis advertising-b.v.raghunandanSVS College
 
Cyer crimes and cyber laws b.v.raghunandan
Cyer crimes and cyber laws b.v.raghunandanCyer crimes and cyber laws b.v.raghunandan
Cyer crimes and cyber laws b.v.raghunandanSVS College
 
Training hr for rural marketing copy
Training hr for rural marketing   copyTraining hr for rural marketing   copy
Training hr for rural marketing copySVS College
 
Campus agenda for career plannning mba- b.v.raghunandan
Campus agenda for career plannning  mba- b.v.raghunandanCampus agenda for career plannning  mba- b.v.raghunandan
Campus agenda for career plannning mba- b.v.raghunandanSVS College
 
Mentoring b.v.raghunandan
Mentoring b.v.raghunandanMentoring b.v.raghunandan
Mentoring b.v.raghunandanSVS College
 
Student empowerment through mentoring and reverese mentoring b.v.raghunandan
Student empowerment through mentoring and reverese mentoring b.v.raghunandanStudent empowerment through mentoring and reverese mentoring b.v.raghunandan
Student empowerment through mentoring and reverese mentoring b.v.raghunandanSVS College
 
Fdi in retail business b.v.raghunandan
Fdi in  retail business  b.v.raghunandanFdi in  retail business  b.v.raghunandan
Fdi in retail business b.v.raghunandanSVS College
 
Book building-b.v.raghunandan
Book building-b.v.raghunandanBook building-b.v.raghunandan
Book building-b.v.raghunandanSVS College
 
Ipo and retail investors b.v.raghunandan
Ipo and retail investors b.v.raghunandanIpo and retail investors b.v.raghunandan
Ipo and retail investors b.v.raghunandanSVS College
 
Emerging trends in indian marketing b.v.raghunandan
Emerging trends in indian marketing b.v.raghunandanEmerging trends in indian marketing b.v.raghunandan
Emerging trends in indian marketing b.v.raghunandanSVS College
 

Mehr von SVS College (20)

Entrepreneurship b.v.raghunandan
Entrepreneurship b.v.raghunandanEntrepreneurship b.v.raghunandan
Entrepreneurship b.v.raghunandan
 
Case study for Class Room Teaching- B.V.Raghunandan
Case study for Class Room Teaching- B.V.Raghunandan Case study for Class Room Teaching- B.V.Raghunandan
Case study for Class Room Teaching- B.V.Raghunandan
 
Finance sector reforms development finance-b.v.raghunandan
Finance sector reforms development finance-b.v.raghunandanFinance sector reforms development finance-b.v.raghunandan
Finance sector reforms development finance-b.v.raghunandan
 
Financial leverage as the balance sheet polluter b.v.raghunandan
Financial leverage as the balance sheet polluter b.v.raghunandanFinancial leverage as the balance sheet polluter b.v.raghunandan
Financial leverage as the balance sheet polluter b.v.raghunandan
 
Indian banking and financial inclusion b.v.raghunandan
Indian banking and financial inclusion b.v.raghunandanIndian banking and financial inclusion b.v.raghunandan
Indian banking and financial inclusion b.v.raghunandan
 
Professional ethics b.v.raghunandan
Professional ethics b.v.raghunandanProfessional ethics b.v.raghunandan
Professional ethics b.v.raghunandan
 
Ugc choice based common curriculum b.v.raghunandan-ugc
Ugc choice based common curriculum b.v.raghunandan-ugcUgc choice based common curriculum b.v.raghunandan-ugc
Ugc choice based common curriculum b.v.raghunandan-ugc
 
Budget 2015 16 and fundamentals of union budget-b.v.raghunandan
Budget 2015 16 and fundamentals of union budget-b.v.raghunandanBudget 2015 16 and fundamentals of union budget-b.v.raghunandan
Budget 2015 16 and fundamentals of union budget-b.v.raghunandan
 
Capital structure b.v.raghunandan
Capital structure b.v.raghunandanCapital structure b.v.raghunandan
Capital structure b.v.raghunandan
 
Entrepreneurship in the it era b.v.raghunandan
Entrepreneurship in the it era b.v.raghunandanEntrepreneurship in the it era b.v.raghunandan
Entrepreneurship in the it era b.v.raghunandan
 
Analysis of society vis a vis advertising-b.v.raghunandan
Analysis of society vis a vis advertising-b.v.raghunandanAnalysis of society vis a vis advertising-b.v.raghunandan
Analysis of society vis a vis advertising-b.v.raghunandan
 
Cyer crimes and cyber laws b.v.raghunandan
Cyer crimes and cyber laws b.v.raghunandanCyer crimes and cyber laws b.v.raghunandan
Cyer crimes and cyber laws b.v.raghunandan
 
Training hr for rural marketing copy
Training hr for rural marketing   copyTraining hr for rural marketing   copy
Training hr for rural marketing copy
 
Campus agenda for career plannning mba- b.v.raghunandan
Campus agenda for career plannning  mba- b.v.raghunandanCampus agenda for career plannning  mba- b.v.raghunandan
Campus agenda for career plannning mba- b.v.raghunandan
 
Mentoring b.v.raghunandan
Mentoring b.v.raghunandanMentoring b.v.raghunandan
Mentoring b.v.raghunandan
 
Student empowerment through mentoring and reverese mentoring b.v.raghunandan
Student empowerment through mentoring and reverese mentoring b.v.raghunandanStudent empowerment through mentoring and reverese mentoring b.v.raghunandan
Student empowerment through mentoring and reverese mentoring b.v.raghunandan
 
Fdi in retail business b.v.raghunandan
Fdi in  retail business  b.v.raghunandanFdi in  retail business  b.v.raghunandan
Fdi in retail business b.v.raghunandan
 
Book building-b.v.raghunandan
Book building-b.v.raghunandanBook building-b.v.raghunandan
Book building-b.v.raghunandan
 
Ipo and retail investors b.v.raghunandan
Ipo and retail investors b.v.raghunandanIpo and retail investors b.v.raghunandan
Ipo and retail investors b.v.raghunandan
 
Emerging trends in indian marketing b.v.raghunandan
Emerging trends in indian marketing b.v.raghunandanEmerging trends in indian marketing b.v.raghunandan
Emerging trends in indian marketing b.v.raghunandan
 

Rejuvenating indian manufacturing industries b.v.raghunandan

  • 1. Rejuvenating Indian Manufacturing Base and Lessons from Chinese Miracle -B.V.Raghunandan, SVS College, Bantwal Post Graduate Department of Commerce University College, Mangalore March 14, 2013
  • 2. India and China: Similar History and Different Journeys • India was liberated from British Rule in 1947 and People’s Republic of China was founded in 1949 • India became a Republic with the idea of Socialistic Pattern of Society and China became a single party communist state • India adopted mixed economy and China adopted state ownership of everything including land
  • 3. Political Leadership • Nehru caused the Public Sector • Mao gave importance to agriculture, and Defence • 1962 Humiliation in War
  • 4. Indian Industry: Initial Stage • Growth of Public Sector • Family Owned Business comprising Private Sector • License Raj and a Land of Shortages • Bureaucracy and its Suspicious and Vindictive Attitude Towards Private Business • Politicised Co-operative Sector • Many Instances of Black Economic History • Sluggish Exports, Growing imports and Deficit Economy
  • 5. Chinese Industry: Initial Stage • Economy of Deprivation & Self Sufficient • Conservation of Resources • Huge Amount Spent on Defence • Piling Up Nuclear Arsenal including Hydrogen Bombs • Industrial Production was less than the Bare Minimum • Totally Regulated and Centrally Planned Economy • Became a Superpower
  • 6. Indian Fiasco • Slow Growth Rate • Inefficient Public Sector • Corrupt Government • Killing Tax Rates • Black Money • Energy Crisis • Lack of Investible Funds • 1968-a Shameful Year • 1990-Another Shameful Year • Industrial Policy was Defective • Only Traditional Exports
  • 7. Defective Industrial Policy • High Tax Rates • No License for Expansion • Powerful MRTP Act & Commission • Traditional Family Owned Business dominated the industrial scene • Poor Infrastructure • Delay in Completion of Power Projects • Generation & Transmission-Govt Monopoly
  • 8. Game Changers • Remittance from 1976 from Gulf NRIs • Government could Liberalise Import Policy • Industrial Raw Materials became available more • Growth of Reliance Industries • Capital Market becoming a Household Investment • EPZs and Tax Holidays • Housing Finance by HDFC • Rajiv Gandhi’s First Dose of Liberalisation in 1984
  • 9. Chinese Game Changers • Death of Mao Ze Dong in 1976 • He left China as a unitarian monolith of single party communist ruled • Mass Poverty and Deprivation • Conserved Resources • Only Country in the world without exports and imports • The biggest Red Army in the world • A Thermo-nuclear Power
  • 10. Rise of a Socialistic Market Economy • Deng Xiao Ping became the Chief Economic Advisor • Proposed a Market Economy • More Industrialisation • Invitation of Foreign Investment to a Limited Extent • Pirate Economy • Building up Database • 1980s saw Gorbachev in USSR and Deng in China • Became angels of Market Liberalisation
  • 11. Rajiv Gandhi’s Liberalisation • In automobiles, telecommunication, education • Liberalising Licensing Policies • Tax Rates were brought down • Encouragement for Exports • Sam Pitroda was the Advisor
  • 12. Debacle of 1990s • Foreign Exchange Reserves dipped to a low of 7 days’ import requirements • RBI pledged its gold reserves with Bank of England • Tax Revenue was low • Industrial Growth became sluggish • Wheels of Fortune turned against India • Blame was on the first dose of liberalisation
  • 13. Liberalisation 1991 • Lower Tax Rates • Easier Licensing Policy • Diluting PSU Monopoly • Disinvestment • Banking Sector Reforms • Capital Market Reforms • SEBI and other Regulatory Bodies • Forex Management • Media Reforms • Opening up Telecommunications • Opening up Insurance Sector
  • 14. Policy Dithering • Self-Cancellation Policies • Bureaucratic Mindset • Lack of Firmness • Lack of Unity of Command • Lack of Ministerial Stability • Still suspicion on Industries • Lack of Planning and all Management Strategies
  • 15. Policy Variations • China has Clear Cut Policies • India changes Policies very often • China believes in Manufacturing whereas India is betting on Service Industries • China invested in hardware industries, whereas India was preoccupied with software Industries • China believes in penetrating every market in every foreign country-India gets preoccupied with a few sectors • Trade Surplus and Trade Deficit • Cheaper Yuan and Tendency to Make Indian Rupee Costlier • Growth Vs Inflation-Rates of Interest • Cost Wonder and High Cost Economy • Monitoring Project Execution • Investing in Infrastructure
  • 16. India’s Agenda • Further Encouragement to Export Industries with a Guarantee of Non-Withdrawal • Further Reduction of Taxation on the same Footing as IT Industry • Encouraging Research in Industries where Chinese Products are Flooding Indian Market • 24x7 power supply to industries-dedicated terminals • Government Assuming the Role of Managing Industrial Pollution through outsourcing