LETTERS TO THE EDITOR
The exhortation by George Fernandes to discourage MNCs reflects patriotism as well as smacks of an old mindset. When he formed his views, there was neither globalism nor a global village. Transport and communication have undergone a revolution over the last two or three decades bringing the world much closer to its parts. Globalism is an ideological cover for the First World manufacturers to gain easy entry into the markets of the rest of the world. Technology has advanced so much that over-production is inevitable and homes have to be found for it.
In the light of these new realities, the new government should frame its policies. The main focus of its attention should be three of the four well-known sectors -- primary, comprising farming, fishing and mining, tertiary, consisting of services and quaduary, comprising leisure and entertainment. These are areas where India can be as good as the best in the world. On the other hand, in the secondary or the manufacturing sector, India lost the race decades ago. To catch up with the best manufacturers in the world is likely to be a wild goose chase.
To protect Indian entrepreneurship however, a medium or a swadeshi sector should be recognised. The companys capital should not exceed Rs 10 crore and none of its shareholders should be a corporate body; only individuals. This sector should be exempt from all indirect taxes as well as the Industrial Disputes Act. This would be its handicap start in order to enable its industries to compete with large houses and the MNCs who should then be allowed to operate freely.