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India should first go in for internal liberalisation, says Rahul Bajaj
Geeta Nair
Pune, Aug 1: No genuine joint ventures (JV) have survived in India and it has been found that the foreign companies gradually take control of the Indian JVs from the Indian partners. When JVs take place between a multi-national company (MNC) and an Indian company, it is almost always between two unequals. Even after ten years of liberalisation the Indian partner has very little to offer, while the MNC has larger resources by way of capital, technology, management and export capability. That was Rahul Bajaj speaking after he was presented the Lokmanya Tilak Award in Pune for keeping the Indian industry flag flying in difficult times. "We need foreign capital on our own terms," Bajaj said.He criticised the Government policy of offering 100 per cent equity to foreign companies in every other sector. Apart from some areas where accessing technology would be difficult without offering 100 per cent equity, there was no need to offer more than 50 per cent equity, Bajaj said. Indian companies can buy technology under technology collaborations or by offering less than 50 per cent equity as has been seen in China. This country has had enough of external liberalisation. It is now time for some internal liberalisation in the country. "We have achieved a great deal because of external liberalisation and what we need now is more and more internal liberalisation." Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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