Local firms should emulate China: PM

Asserting the government's commitment to empower public sector companies, Prime Minister Manmohan Singh said Indian companies should emulate the Chinese model and become globally competitive.

"Our motto should be to do as well as China in terms of Gross Domestic Product (GDP) growth, growth of manufacturing, growth of trade and growth of infrastructure," Singh said while inaugurating the Scope-Federation of Indian Chambers of Commerce and Industry-Confederation of Indian Industry summit of Indian CEOs on Saturday.

The Prime Minister said the Government has made a clear commitment to empowering public sector units (PSUs) and their managements.

"We have already given our commitment to help in the globalisation of our Navratnas, especially of firms in strategic sectors like energy. Both the navratnas and other PSUs require competent managerial leadership," he added.

All firms, be they in the public or the private sector, must become more competitive so that they can face increased competition from abroad, he said.

Adding that the government was setting up a National Knowledge Commission to improve the quality of manpower.

Finance Minister P Chidambaram in his address expressed his dismay at the tardy response of Indian companies to corporate governance requirements.

He pointed out that many companies were yet to appoint independent directors and audit commmittees.

"If I ask CEOs what is the distance they have travelled in the corporate governance milestone of 1-10, not many of them will reply that they have crossed even 3," he said.