Tuesday, December 03, 2013: In order to reduce India’s dependency on imports in areas like electronic good, it is important that American companies invest in the country’s manufacturing sector instead of selling aircraft and defence equipment to India. This concern was shared by telecom minister, Kapil Sibal.
Sibal also showed concern over the US visa norms that affect Indian professionals, particularly in the IT sector.
Speaking at a summit organised by the Indo-American Chamber of Commerce, Sibal said, “They (US based investors) are interested in selling their Boeings, they are interested in selling aircrafts, defence equipments but that is not the way to converge in this partnership. I am sorry I am bring very frank but it’s the time to be frank.”
“Today, because of high wages cost in China, manufacturing facilities are shifting to India. Japanese are very keen to invest in India, I don’t know why the Americans don’t come forward.”
Sabil told NDTV, “A lot of countries are ready to invest in India’s electronic sector including Israel but US-based companies have not shown interest, adding that India has no option but to develop manufacturing base to reduce trade deficit.”
“The present import bill of crude oil is about $140 billion. Do you think Indian economy can afford to import $300 billion of consumer electronics. We will become bankrupt. We have no choice to build manufacturing sector in our country,” Sibal said.
Indian professionals face visa hurdles while trying to go to the US. “You are a country that talks about liberalisation of global economy and yet you are increasing cost of our IT sector by trying to impose restriction on our people trying to go to US. I don’t think this is the right attitude for partners,” Sibal added. “Remember we are the oldest and most powerful democracy of the world. Willy nilly, we are long term partners, whether you like it or not.”
“The economic model has to change. You can’t sell goods to consumer in India when he has no capacity to buy. Perhaps 1-2 per cent elite may buy your products, but 90 per cent will not. You need to invest in Agriculture, medical electronics, education. Unless you help Indian economy at bottom of pyramid, you won’t be able to increase buying capacity of Indian consumers,” Sibal further said.
