Why India Fails in International Trade?
Why India Fails in International Trade?
| By Anonymous on Saturday, December 16, 2006 - 09:46 pm: |
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| By Anonymous on Saturday, June 17, 2006 - 06:55 am: |
Thanks for the kind words man.
Either ways, whenever I've asked a big timer in my industry "why don't you make your own brand and sell it internationally rather than put up with these credit mongering buyers?", the only answer I get is "Western people will not buy it."
Their analysis and thought begins...and ends right there. "Western people will not buy it." Just six words sums up the attitude.
MOST of industrialists are also guilty of being content w/ maintaining the status quo even if doing so means death or strangulation of an industry. This is a very short sighted attitude which kills the industry. Like, in my industry, in the 80s, the payment norms were: 15-30 days, 50% advance before production started and prifitability was at 16%. Now, the norms are 180 days, 0% advance and profitability (aggregate) is around a meager 5%. Don't you think it's about time to change the business dynamics??? Not our industrialists.
But the big players in the industry are still not even thinking of changing their mode of operation (jobwork). They just get around by inviting a bunch of naive first timers and hapless small scalers and dump the credit burden on them. They just issue a sub-PO to the small scaler/ first timer and dump ALL THE credit burden on them. They PROMISE 30 days payment but it realisticaly takes 180 (if you're a REAL lucky man) to 360 days. Can you imagine what happens to the hapless small timers?
Not like the big guys don't want to pay up- it's just that they're acting in accordance to their convenience but in our country, it amounts to chocking an entire industry and market. For example, a small time lorry owner has an outstanding of Rs. 12 lakhs from ONE big factory. Can you imagine this??
And, a few days later, they're giving a conference out in some A/C hall along with some leaders as to what can be done to increase productivity in India! What a joke...
You are right there.
Indian business men and industrialists, at least the older generation are a bunch of selfish opportunists without any innovation.
If the world can buy Honda, Toyota, Sony and Mittal, they will also buy other Asian brands if they are well made.
Being an optimistic and knowing the potential of younger Indian generations, One day sooner than later, you will see that Indian made goods will be solicited much like Made in Japan, Germany and China today.
Indian business credit market has been non existent virtually for lack of choice and monopolistic trends, poor ethics and a notorious culture of delayed payments, poorer quality and no rule book etc.
Hope things will change one fine day.
editor
| By Anonymous on Monday, June 19, 2006 - 08:49 am: |
"india shoold find a natural mutant somniferum poppy that produces mostly codiene.that woold be better than an artificial thebaine producing mutant because thebaine is poisonus and will converted intu etofiene incriesing the unlegal narcotic supply.i believ the setigerum has different mutations than somniferum and is hybrid but the somniferum more mutant and a little hybrided also."
Instead of dealing with mutants and investing tonnes of money in making them, and doing all kinds of redundantly complicated c#$p, why don't we just do away with un-economical, impractical laws and just continue with the good ol' non-mutated, all natural poppies?? Like the ones they used to sow since way back- before we had cars etc? It can be state run or a public/private enterprise to ensure that certain poppy extracts don't become used in international trade.
And if some dudes just want to consume those extracts, without bothering anyone, just let them for crying out loud.
I'd rather spend India's money on making more schools, more food, and more industries rather than making some "sobriety only" mutants.
| By Anonymous on Friday, June 16, 2006 - 10:17 am: |
"India's Business depends on the trade policies designed by our hardcore academics with semi-pseudo communist agenda, and dreamers of social justice, which has made us totally unproductive and today India is not competitive in most areas of International Businesss."
Ah, so you studied BSC Economics huh? Either ways, have you considered looking at the issue in a slightly different point of view?
How's about 1. our national industry is not yet solidified...and we're opening up our economy on unfavourable terms? And 2. We don't have ANY bilatral trade agreements which favour INDIA'S INDUSTRY? 3. We don't follow "globalization" par se but we're merely accomodating North American corporate interests.
Plz. look at all the 3 pointers I discussed. I'll go over each point w/ u. Read it if u wish.
1. The provision of low tech consumer goods nationwide is the responsibility of the public sector. This sector won't be profitable but will generate enough transactions to boost commerce and GDP NATIONWIDE whereas neo-liberalisation will only be beneficial to a selective number of cities. It's like having a "chandai" versus a "supermarket chain." Which one does INDIA NEED? Please don't think of central A/Cs but think of national needs- of 100 crore ppls.
2. What's the use trying to cozy up to countries like Saudi Arabia and Kuwait? They have already sworn "exclusive status" with the US. And whatever deals we'll get through them will only be second rate. Don't you think we should think independent and invest in a country like Iran which will perhaps give us more "exclusive" deals?
3. EVERY SINGLE MNC that has ever "graced" our shores (or should I say "cursed") has converted every single local enterprise into a jobwork unit. Now- I'll give you a microeconomic example. If I did job-work for Florshiem shoes USA, I'll be getting $10 per pair at the most in profits. If I made my own brand of shoe and put some effort and marketed it, I'll be getting $70-80 per pair in profits- for the same quality of product.
In this regard...
should HM have folded the COntessa range of products and do job work for Mitsubishi or tried to face lift it and market it internationally? I mean, even worse off cars like LADA and PROTON and VIRA and NASR are doing reasonably well internationally and they're GROWING. BTW- NASR is from Egypt who just started an infant industry in 1997.
Did we REALLY need to sell off Thums up and Limca to the producers of areated horse piss (aka Pepsi and coca cola)? Now- in the Middle East and Europe, there is a HUGE demand for non-coke/ pepsi products. That's now being fulfilled by countries like Iran (Mecca Cola). Sales are flying in Mid East and Europe (esp. France) and MEcca Cola is now a serious contributor to the Iranian economy. We HAD a national beverage industry and we just threw it away. It's a farse! When I saw that news, I just hoped that a sniper would shoot me in the head...
The lists go on and on- but our piss poor performance in international trade can be attributed to 2 factors.
1. Lack of self belief.
2. Not a shard of long term vision.
We seem to be just content with doing some 0 brain mechanical work whilst having someone else run the show. In such a case, you'll have undervalued exports and overvalued imports. Our OWN LEADERS believe that we don't have what it takes to take India abroad. Rather they're content on getting some petty alms by allowing foreign companies to make deep inroads into our economy.
Socialism and communism and whatever else that comes inbetween have nothing to do with our dismal performance in international trade.
Let me put things in proper perspective: Do you agree that India's IT industry is more evolved than Russia's? But still- I have yet to see ONE TRUE GLOBAL indegenous solution (a finished product) come out of India's IT industry. The Russians have expanded as far as PC gaming!!! But I bet we can make a KILLER game in India. But still- we just keep doing job work for others.
Here's a saying: A confident high school dropout who has a vision will be more successful than a short sighted IITian who has 0 confidence. Heh, it will be pretty cool if the Martians find this inscription in 10209 AD and make their offspring memorize this huh?
Here's some food for the brain. Read it if u wish.
We can either opt out to be a follower (more like a slave) for an established power who will toss some alms every now and then or we can really take that leadership chair and start leading from the front. Doing the former will give you an mirage of a safety net- but you'll never develop.
The same holds true in microeconomics too. When I was supplying materials to many international big time players (in the footwear industry) I always found myself scrambling for money. THe prospectives looked good. The paper math looked good. The POs looked very prestegious. But in the end- I always had a cash flow problem- those endless debit notes didn't help things out either. I could hardly find enough money to run a car. Now, I just told all of them to "f#$k off" and am doing my own brand. I can now run a car, have a savings account and vacation out to Kullu Manali every now and then. Now- I dictate terms AS TO WHAT SUITS ME. No more 180-360 days credit. It's cash + carry.
But in all my career of doing my own brand, I had a really rough 2 years. But I stuck on and didn't surrender. As a result, I got rewarded. Ok, maybe I'm not the next Tata or Brila, but I have control over my own economics. The same holds true for Macroeconomics- because Macroecon is just a collection of diff. microeconomies inside a country.
The path we're taking right now resembles what I did in my career earlier on. And I can speak with experience: It does not work.
Very well said.
You are absolutely right. Hope Indian policy makers or rather entrepreneurs can open their dormant eyes.
moderator
| By Anonymous on Monday, March 20, 2006 - 10:55 am: |
I don't think socialism has anything to do w/ our productivity. We never really had a "national agenda" with concrete 5 year goals in any point in our independent history after the first two 5 yr. plans. One party prioritizes roads and starts on it and the other dismantles the road project to start on something "more important." Internationally, we have our problems today because we don't have any power projection. This is the bigger issue.
In the international arena, we aren't able to push forth our interests. Should we really be paying Rs. 50 (More than the US person does) per liter for petrol?? If we say, "Iran will supply us with petrol for Rs. 35 a liter" and the US positions aircraft carriers in the Persian Gulf, we can do nothing for now but comply w/ the US.
A vibrant public sector running is vital for the development of national industry. I would push forth our power projection capacity by 200% if I was leader.
Don't forget- all the countries pushing for "neo-liberalism" all did so only after their national industry was stable.
This is a bit unrelated but every consumable product I've seen of non-Indian origin was of VERY poor quality. Anyone remember seeing that dead lizard in that Pepsi bottle? I don't recall seeing any dead lizards in Thums-Up or Gold Spot bottles...I'm just not sure whether I want these kind of shady billion dollar groups supplying me with my household items...
| By azeez on Wednesday, April 13, 2005 - 08:13 am: |
res sir. i want to join this org. pl give me inf if membership pl give me. thnaks
| By john doe on Wednesday, April 27, 2005 - 04:24 pm: |
india shoold find a natural mutant somniferum poppy that produces mostly codiene.that woold be better than an artificial thebaine producing mutant because thebaine is poisonus and will converted intu etofiene incriesing the unlegal narcotic supply.i believ the setigerum has different mutations than somniferum and is hybrid but the somniferum more mutant and a little hybrided also.
| By Anonymous on Sunday, December 12, 2004 - 04:10 am: |
First of all,I would like to thank all of you for giving me this oppertunity. Nothing can get bettre in India untill they change their prospective.Look at the society how Poor is it .There is no humen right and law.Human has being treated as Pigs.Court house can buy and sell like candy.In such country it's very difficult to say "when".