Search the Internet          Tips  Sites: Finance, Investment

Avoid corporate rivalry, Shourie tells industrialists

BS Corporate Bureau

Actions speak better than words. This was the crux of the speech that Arun Shourie, minister for divestment, delivered at the CII session "Challenges in the global economy".

Shourie urged the governments to stop making announcements about their plans. "Say less, do more," stated Shourie. "We should not keep announcing what we will do. Instead what we have done should speak for us," he said.

Shourie said too many announcements and lack of implementation had affected the credibility of the country.

Citing the example of the decision on a single-window clearance to deal with the problems of industry, Shourie said, "The announcement was made in August last year. But nothing has happened till date. During my last visit to Japan, officials kept enquiring about the single-window clearance that we had promised."

Similarly, Shourie said during the prime minister's recent visit to Singapore, a decision was taken to set up a joint study group for economic cooperation.

However, no progress has been made on the joint task force for free-trade that was set up between the countries two years ago.

Shourie said that we are at a "tipping point" with regard to economic policy and reform. There are many positive statements as many people who were earlier opposed to privitisation are now in favour of it.

But there are small groups that can bring about an obstruction in reforms, he said.

Shourie also said that we must focus on those reforms that can be carried forward without any legislative changes. "We must by anyone and everyone who will carry forward the reform programme," he said.

Talking specifically of judicial reform, he said, "There is a new mood in the judiciary to review judgements that have become obstructions to economic growth."

He said that judges should identify the judgements that can come for review. "Industry organisations and the government should ensure that the review takes place."

Shourie said, "One single reform that can make all the difference is that allocation to central and state ministries should be linked to performance rather than entitlement."

He also said we should work towards ensuring cooperation and consensus of the prime minister and all the chief ministers. "They are the ones facing identical problems," he said.

Shourie urged the industry to discard the old habits which had become the core competence of the licence raj. "Corporate rivalry is the main impediment to pushing things forward," he said.

"We need to implement the culture of the rule of self-denial and rule-abindingness," he added. Shourie said that it was unfortunate that corporates use the state apparatus for their personal gains.

He also said that the reaction of the industry to run to mama (government) for everything is not correct. He contrasted India's response to China with that of Japan and Singapore.

While Japan and Singapore said they would focus on new innovations and technological advancements to counter competition from Chinese goods, the Indian industry ran to the government and asked them to impose anti-dumping duties.

"There is no level of protection that can be offered which will be sufficient for the Indian industry," he said.

"The reactions of the Indian industry need to be very different from what they have been in the past," he said.

Powered by

ALSO READ:
The Rediff Budget Special
The Rediff-Business Standard Special
Money

Tell us what you think of this report