Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Monday, 27 February 2023

In Juxtaposition

 


 

 

Context :

South Korea's Hyundai and Kia cost India billions of dollars in trade deficit, says Piyush Goyal

 

Extract :

Union Commerce and industries minister Piyush Goyal has said that Korean auto majors, like Hyundai and Kia, cost India billions of dollars in trade deficit by misusing the free-trade agreement between the two countries.

  

Speaking at the Asia Economic Dialogue, Goyal said that the free trade agreement allows these companies to import indiscriminately.


"The Korean auto industry, specifically Hyundai and Kia, are clearly two of the laggards. They have enjoyed the benefits of our free-trade agreement with Korea and Japan and continue to import indiscriminately," Goyal said.


He added that the small investment of half a billion or a billion dollars has cost India dearly in terms of billions of dollars of trade deficit they have caused us directly with Korea or other countries.

 

"We've been talking to Korea about opening up their markets for our products, but look at the stark difference, Korea doesn't stop any export of steel from India to Korea, and neither does Japan, but we can't sell a tonne of steel in both these countries because there is a nationalist spirit, which we unfortunately lack," he said.


He added the production-linked incentive (PLI) schemes could only help the manufacturing sector to a small extent as ultimately they needed to be,

Ø   competitive,

Ø  stand on their own legs and

Ø  provide quality products to the consumers’.

ST

 

At a disadvantage. No level playing field with public sector in defence, says L&T 

Extract :


Even though, theoretically, defence production is open to both the public and private sectors, in practical terms, there is no level playing field, as the government loads its own enterprises with orders on nomination basis, leaving very little for the private sector, says Jayant Patil, Member of the Executive Committee of Management, Larsen & Toubro, and Advisor, Defence & Smart Technologies to CEO & MD, Larsen & Toubro. 


In an exclusive interview to businessline, Patil said L&T had invested ₹8,000 crore in seven facilities for defence production years ago; however, the factories’ capacity utilisation is far from full. 

 


MY  TAKE  :

 

Ø  Level Playing Field ?  ………………………………………  11  June  2016

 

Extract :

 

It just does not exist - so forget about it and make the most of what you have !

For Corporate , it is absurd to demand and for a Government , it is futile to attempt to provide a
Level Playing Field


There are no two countries where ALL the resources and the ENTIRE industrial Eco-system , is identical or even closely similar

Inputs for any industry are :


#    MANPOWER


    *  Ave age / Education Level / Skills / Work Ethics / Productivity / Working

        Hours / Holidays /  Salaries

    
#    RAW MATERIALS / COMPONENTS AVAILABILITY

    *  Local vs Imported / Supply Chain / Logistics / Duties & Taxes / Quality



#     FINANCE / BANK INTEREST RATES


     *  Equity / Loans / Interest Rates / Collateral / Duration / Terms 




#    LAND / LOCATION ( of manufacturing unit )


     *  Availability / Prices / Transport / Availability of Skilled Manpower 




#    INDUSTRIAL  POLICY ( Central and State Governments )


     *  Exemptions / Incentives / Restrictions / Inspections / Permissions /

         Compliance


#    MARKET


     *  Domestic / Overseas  

  

#    TECHNOLOGY


     *  IPR / Patents Regime / Copy-Rights / Home-Grown / Licensing / Royalty 



#    TAXATION


     *  High / Low Corporate Income Tax / Capital Gains Tax 



#    INFRASTRUCTURE


     *  Internal ( Road-Rail Network / Air-Sea connectivity ) / Warehouses



#   COMPETITION


     Monopoly / Oligopoly / Cartels / Fierce & Free competition of many



Now , Industrialists / Businessmen , all over the World , will continue to compare

the INDUSTRIAL INPUTS existing in their own country with the following

BENCHMARKS :


#   Most Business Friendly ................................... Ireland


#   Lowest Corporate Tax...................................... Kuwait ( 0 % )


#   Lowest Hourly Wages ( PPP basis ).................... Bangladesh ( $ 0.25/hr )


#   Highest Working Hours.................................... Mexico ( 42.5 / week )


#   Least Govt mandated paid holidays................... USA     ( Nil )


#   Highest Manpower Productivity......................... Switzerland


#   Lowest Bank Interest Rates.............................  Denmark ( 0.05 % )


#   Demographic Advantage of a Young Population....India 


#   Ease of Introducing unpopular reforms..............  China ( Dictatorship )  



There is , quite likely ,
some parameter on which a Country can claim to have distinct advantage over all the other countries


It could have something to do with its Geographical situation / Historical evolution / Political System / Legal Frame-work / Societal Norms etc


It is not possible to replicate advantages of all of these Benchmark Countries , into any one single country


At the same time , it is very important to keep studying these Benchmarks and ask ourselves :


"  How have these countries managed to reach , where they are ?


   What REFORMS can we introduce in our own system to catch-up ?


   Are there any parameters in which we ourselves are a Benchmark to others ?


   What should we do so that we do not slip-up where we are ourselves , some


   kind of a Benchmark , to the rest of the World ? 


----------------------------------------------------------------------------------------


with regards,

Hemen Parekh

www.hemenparekh.ai  /  28  Feb  2023

 

 

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Solar Power at Re 1 / kwh ?   ……………………………………………………  [ 29 Jan 2017   ]

 

Unlimited Power and around the clock   …………………………………    [ 29 July 2016  ]

 

Universal  Basic  Income   ……………………………………………………………[ 20 Jan 2017  ]

 

Can Indian IT re-invent itself  ?   …………………………………………………[ 03 Feb 2017  ]

 

HOW CHINA MAKES CHEAP ?   …………………………………………………….[ 08 Nov 2014  ]

 

" BACK FACTORY " OF THE WORLD ?   ………………………………………..[ 09 Sept 2015 ]

 

 

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In a State of Denial ?   …………………………………………………………………[ 22  Sept  2017 ]

 

What would happen ?   ……………………………………………………………….[ 29  Sept  2017 ]

 

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Saving Jobs : Creating Jobs   ……………………………………………………… [ 19 Dec 2017  ]

 

Free Electricity ? Possible   ……………………………………………………………[ 28  Dec  2017  ]

 

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Whose Interest ?    ………………………………………………………………………..[ 26  Jan  2018  ]

 

Car Grave-Yard of World ?    ………………………………………………………… [ 14  Feb  2018  ]

 

Modiji’s ( incomplete ) Message !   ………………………………………………  [ 13 Mar 2018  ]

 

A  TradeWar  Epidemic  ?    …………………………………………………………… [ 22 Mar 2018 ]

 

Thanks  for  Speaking  Up  !   …………………………………………………………[ 27 Mar 2016 ]

 

A  Robotic  Invasion  ?     …………………………………………………………… . [ 19  Apr 2018  ]

 

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