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Thai Curry Upsets Indian Biggies: The Financial Express
New Delhi, Oct 12: The ink is hardly dry, but some sections of the domestic industry are already taking stock of how the just signed Indo-Thailand free trade agreement will impact their fortunes.
New Delhi, Oct 12: The ink is hardly dry, but some sections of the domestic industry are already taking stock of how the just signed Indo-Thailand free trade agreement will impact their fortunes.
If Thai cuisine is hot amongst Indian corporate leaders today, some industry observers, however, feel that the potential entry of Thai cuisine restaurants may see the existing domestic players see red. And sections of the domestic auto components industry also wants some brakes applied to protect their interests.
“The entry of Thai cuisine restaurants is imminent as remarked by Thai deputy prime minister Korn Dabbaransi during his India visit in August. They will give tough competition to high-profile domestic restaurants specialising in Thai cuisine in some of the major five-star hotels,” says an official of one of the hotel chains.
Auto components company Shriram Pistons senior executive director Ashok Taneja observes, “it would be unfair to pitch our industry against Thailand’s without some groundwork.” He indicates a 20 per cent import cost disadvantage compared to Thailand, citing an Icra study. “If doors are opened too quickly, small and medium players could be wiped out,” he says suggesting a gradual approach. Sona group chairman and managing director Surinder Kapur says, “the government must ensure protection to each segment of the industry to the extent of hidden costs thus creating a level-playing field.”
The framework agreement calls for tariff reduction on 84 items in the first phase, which include auto parts, electronic appliances, infrastructure sector including tourism and food.
Clutch Auto vice-chairman and managing director Vijay Mehta terms the agreement as “automotive colonialism.” But there are also many others in corporate India who do not feel threatened. “Blue Elephant is a global chain of restaurants popular in various countries. We don’t have to worry about the competition. In fact, competition will popularise the Thai food even more,” says The Grand Group of Hotels director, marketing, Anjali Chatterjee.
The Oberoi group spokesperson could not be contacted. An official of the ITC-Welcomgroup expects easy access to authentic food ingredients that is vital for cooking the Thai food.
Auto component manufacturer Minda Industries managing director Nirmal Minda also sees silver lining. “The industry must tighten its belt. Relying on our quality we must look at opportunities through the FTA,” he says. Minda chose Indonesia over Thailand for investments in operations two years ago. "The FTA has created a more conducive environment of trade between the two nations. We must now work together to make the FTA a success,” says Nuclear Software managing director Vishnu Dushad immediately after his return from Bangkok.
Speaking from Bangkok, Confederation of Indian Industry deputy director-general N Srinivasan tolf FE, “the fear of component manufacturers are somewhat misplaced. The industry is very competitive and they must also look at opportunities under the FTA.”
Federation of Indian Chambers of Commerce & Industry secretary-general Amit Mitra has this advice: “We must look forward. There must be cooperation based on the Ricardian principle of complementarity, a win-win situation for both parties.”
“The entry of Thai cuisine restaurants is imminent as remarked by Thai deputy prime minister Korn Dabbaransi during his India visit in August. They will give tough competition to high-profile domestic restaurants specialising in Thai cuisine in some of the major five-star hotels,” says an official of one of the hotel chains.
Auto components company Shriram Pistons senior executive director Ashok Taneja observes, “it would be unfair to pitch our industry against Thailand’s without some groundwork.” He indicates a 20 per cent import cost disadvantage compared to Thailand, citing an Icra study. “If doors are opened too quickly, small and medium players could be wiped out,” he says suggesting a gradual approach. Sona group chairman and managing director Surinder Kapur says, “the government must ensure protection to each segment of the industry to the extent of hidden costs thus creating a level-playing field.”
The framework agreement calls for tariff reduction on 84 items in the first phase, which include auto parts, electronic appliances, infrastructure sector including tourism and food.
Clutch Auto vice-chairman and managing director Vijay Mehta terms the agreement as “automotive colonialism.” But there are also many others in corporate India who do not feel threatened. “Blue Elephant is a global chain of restaurants popular in various countries. We don’t have to worry about the competition. In fact, competition will popularise the Thai food even more,” says The Grand Group of Hotels director, marketing, Anjali Chatterjee.
The Oberoi group spokesperson could not be contacted. An official of the ITC-Welcomgroup expects easy access to authentic food ingredients that is vital for cooking the Thai food.
Auto component manufacturer Minda Industries managing director Nirmal Minda also sees silver lining. “The industry must tighten its belt. Relying on our quality we must look at opportunities through the FTA,” he says. Minda chose Indonesia over Thailand for investments in operations two years ago. "The FTA has created a more conducive environment of trade between the two nations. We must now work together to make the FTA a success,” says Nuclear Software managing director Vishnu Dushad immediately after his return from Bangkok.
Speaking from Bangkok, Confederation of Indian Industry deputy director-general N Srinivasan tolf FE, “the fear of component manufacturers are somewhat misplaced. The industry is very competitive and they must also look at opportunities under the FTA.”
Federation of Indian Chambers of Commerce & Industry secretary-general Amit Mitra has this advice: “We must look forward. There must be cooperation based on the Ricardian principle of complementarity, a win-win situation for both parties.”