Bangalore, Nov 15: India can no longer "wish away" the competition from China and hence a national commitment at every level to effectively face such competition is essential, Twelfth Finance Commission member and former Union Cabinet Secretary T R Prasad said Thursday. The competition between India and China must be "seen in its reality", he said, inaugurating the 10th "Quality Summit" of Confederation of Indian Industry (CII) here.
Chinese goods were 20 to 40 per cent cheaper, he said, noting however that it could not be said that productivity was low in India. The Government was putting more taxes (on goods in India). Also, for China, domestic demand was driving the competition.
He said China had been following one-child norm effectively, which makes more resources available for a family to spend. India, Prasad said, had to adopt at least a two-child norm so that more earnings are available to a family.
Stating that quality was a pre-condition for competition, he said quality was basic whether it was manufacturing, governance, education or services.
"Unless we change and bring in quality, we will be out of the international market," he said.
CII Institute of Quality Chairman K N Shenoy said Indian industry and the Indian economy had been caught in "turbulent waters". "The going has been tough as has been the case across the globe". Bureau Report