By Fakir Hassen, IANS
Johannesburg : Indian manufacturers need not fear burgeoning growth in China as India had its own unique competitiveness in the global market, Indian Minister of State for Industry Ashwani Kumar said here Monday.
Kumar was inaugurating the first India Engineering Centre (IEC) in South Africa, established by the Engineering Export Promotion Council of India (EEPC), which is also only the second one in the world after Chicago.
“This fear of China and goods from China is unfounded. Our manufacturers and entrepreneurs tell me again and again that we have nothing to worry about from China,” Kumar said.
“We are a skills-based manufacturing nation and because of our competitiveness in this sector, we will certainly have a market. The global markets and free trade in good and services will, I think, over time expand economies and ensure that the workforce from developing countries get integrated into the global production processes, thereby ensuring better standards of life and better growth prospects.
“This global expansion of the economy is certainly a factor which we must take notice of and use and leverage it to ensure that Indian goods, including engineering goods, reach across the world.”
Kumar said the government was conscious and mindful of the new dimensions of globalisation, with its “transitional problems”.
“But I have faith in the resilience and capability of our Indian entrepreneurs who, I am certain, will in time be able to find ways to overcome this difficulty.”
Reflecting on the shift in focus in the new world economy from products to production, Kumar said: “If our industrialists are able to ensure fusion between their technological capabilities and production processes, and dovetail their marketing strategies into these processes, we will be able to conquer the world even in the manufacturing sector, as we have done in the services sector.”
Lauding the efforts of EEPC and the Indian mission here, Kumar said: “I have no doubt that this facility will be a window for India in South Africa and the southern African development community just as South Africa will be able to reach out to Indian entrepreneurs and manufacturers through this centre.
“But most important, this office will serve the compelling need of small and medium industries to have an office away from home without having to incur establishment expenditure.”
Kumar said the Indian engineering industry has traditionally been a high export earner for India, and there was no doubt that the African continent provides a huge opportunity for India’s industry.
“We know that India has been attaining high growth rates in the manufacturing sector. Manufacturing will continue to be the principal driver of India’s economic growth.
“I do believe with all my heart that the brick-and-mortar economy really functions on the basis of manufacturing competitiveness and manufacturing capability. The scientific and technological capabilities of India are ultimately going to be reflected in the manufacturing competitiveness of the small and medium sector (which) constitutes 95 percent of Indian industry. It is the largest employer and the largest earner in terms of exports so far.”
Indian High Commissioner Rajiv Bhatia said the presence of the Minister would add value and importance to the efforts to showcase Indian manufacturing in South Africa.
“This will send a signal out to South Africa Inc and India Inc that our government remains fully supportive and associated with the task of export promotion for India,” he pointed out.
“There is a great deal of interest in South Africa and indeed in the region for linking up with India’s business community, particularly in the engineering sector.
“There is no doubt that there is huge complementarity and the time is now for us to exploit it optimally. We know that our exports are growing quite rapidly to South Africa. We also know that in the export basket, engineering goods command a major share to the tune of about one third of the total export basket. I think it should be our attempt to not only increase exports globally but also enhance the share of the engineering products,” he added.
Bhatia said the opening of the IEC and the Indian Engineering Exhibition on Tuesday by the minister were “very right and powerful steps in that direction”.
The IEC will provide a showcase for products and catalogues, marketing offices, and warehousing facilities at nominal cost for Indian manufacturers, said EEPC chairman Rakesh Shah.