Be competitive, industry told

KOCHI Oct. 5. The president of the Associated Chambers of Commerce and Industry (Assocham), R. K. Somany, has called upon the industry to be competitive, cut costs and to be productive to compete in a globalised scenario.

Addressing members of the Cochin Chamber of Commerce and Industry (CCCI) on the occasion of the 145th annual general meeting here last night, Mr. Somani said the benefits of globalisation had given rise economies of scale, new markets, chances to become MNCs to manufacture overseas and to set up companies outside. It was up to the entrepreneurs to make use of the globalisation benefits, he reminded the Chamber members.

He noted that in a globalised environment, it was the market forces that would call the shots and employment generation would be determined by investments. He was of the opinion that the second National Commission on Labour had not come out with enough incentives to motivate the labour and also for labour intensive investment. There was a need for a new work culture and the proposals made by the Commission for new labour laws did not provide adequate flexibility to employers to manage their human resources optimally, he pointed out.

He also said that the recommendations of the National Commission on Labour is not likely to bring about any significant improvement in productivity and performance of the Indian industry. What was needed was concrete suggestions to give the much needed competitive edge to the country in the global markets and also to enhance job opportunities in the domestic sector. Some of the strategic areas have been left out while making suggestions to improve the labour productivity by the NCL.

He predicted that the Indian industry could expect a growth rate of five per cent this year. The reason why a better growth cannot be expected was that the Government was dithering on the question of disinvestment of several important companies. It was not even certain that the disinvestment would continue after three months.

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