Ahmedabad: Senior industry experts in the country believe that India’s manufacturing sector should focus on increasing competition and business rather than depending on tariffs (import duty) for conservation. Apart from this, these experts said that it is also necessary to increase investment in global competition and research and development.
Speaking at the CII Manufacturing Summit, Jamshed Godrej said that India has historically maintained high tariffs for the safety of domestic investors. But he also emphasized that liberalization was necessary to lead industries to global competition in 1991. Tariffs are associated with competition. If you lag behind in terms of tariff then you will not be competitive.
The Indian industry has three challenges: increasing global competitiveness, increasing dependence on supply chains, and focusing on research and development to provide value -added products and services.
This is important in the current uncertain geopolitical landscape, where tariff war is going on between different countries. For example, India is dependent on China for active pharmaceutical raw materials for drug manufacturing or we are still not self -sufficient in the production of AC compressors and this deficiency is mainly met by importing from China.
Industry experts believe that companies are trying to buy more components and make inventory due to increasing uncertainty of supply chain. Tyagarajan said that when a person storage water and food in advance. But there is a limit to use working capital to consolidate the inventory.
It is wrong to focus on tariffs. The first attention should be on increasing competition. Everyone should abandon this tariff mindset. The real challenge is how you can stay competitive with very little tariffs. The Indian manufacturing sector has been fully developed and now its contribution to the GDP is 17 percent.
