Let us focus on what we are Good at !

Let us focus on what we are Good at  !

Some 30 years back ( ? ) , GOI invested Rs 100 Crores in setting up a factory / company ( Called Semi-Conductors India Ltd ? ) to produce wafer fabrication / chips for computers. It took 3 years to start production - of chips used in wrist watches ! - available by Kilo-weights on footpaths of Taiwan  !

By that time , chip manufacture / design had undergone 3 life cycles !

To save GOI  embarrassment , a fire burnt down that factory ! - never to come up again !

If we want to increase local " Value Addition " in " India Made " electronics products , we must ensure that ,

>    there is nil / very small import duty on raw materials / components

>    a little more duty on Sub-Assemblies / Assemblies

>    a high duty on finished products

That will encourage more local Value Addition

Stopping / discouraging imports is not the right way to balance our Trade Deficit

That should be done by exporting things / services where we are globally competitive

Let us not get fixated on making things locally - even at a high cost as compared to importing

Let us not turn ours into a " High Cost Economy "

hemen  parekh  /  Dec 31 , 2014

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Make    Yourself    Heard

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