Monday, October 17 2005 10:55 Hrs (IST) - World Time -

London: India is the only country in the world which can take on China in the manufacturing sector provided there is a change in priorities and mindset in the Government and industry, NRI industrialist Lord Swraj Paul has said.

Though the manufacturing sector has been ignored for many years, "There is a change now and there is a big realization that if any country in the world can take on China in the manufacturing sector, it is India," Lord Paul, who is also British Ambassador for Overseas Business, told a BBC Hindi Programme yesterday night (Oct 16, 2005).

"A developed manufacturing sector is the strength of any country's progress as it is the only sector which provides regular jobs for the work-force," he said.

Lord Paul said, "All other sectors including the IT do not provide stable and permanent jobs. The example of China is there for all to see how a strong manufacturing sector has taken the country on the path of solid progress.

In India, he said, "The manufacturing sector is beginning to get attention now."

Describing how the industrial scenario in India has changed during the last few years, he said, "We had set up a single automobile parts plant in India in 1994. For some years it was functioning merely normal. During the past three years, our turnover has increased from Rs.60 crores to Rs.300 crores. During the next two-three years we are aiming at a turnover of Rs.1200 crores. We are now setting up ten to twelve plants in India simultaneously."

Asked whether India is being seen as a favored destination for foreign investment, Lord Paul said, "The environment for investment has certainly improved compared to earlier days, but the Government and the industry should act fast to bring it to a desired level."

"A change in mindset is required in India to attract foreign investment in large numbers. The Indian industrial houses themselves tell the foreign players that they could succeed in India only if they entered into collaboration with an Indian name, which in my view is not a healthy practice. This, I think, is a way of dissuading investors by painting a grave picture even before they set in," he said.

"India is seen as a country where big names want to invest and all efforts should be made to allow that money to come in for the country's development and bottlenecks should not be allowed," he added.

Asked why India has not been able to match its success of IT sector in other industries, Lord Paul said, "IT sector grew in India because the Government did not know how to regulate it. Had the IT sector been in tight Governmental control, may be the story would have been different.

Asked how the West views India, Lord Paul said, "India is the most vibrant democracy in the world. Not even the West has achieved so much success in vibrancy of democracy as compared to India. Country's economic progress during the last decade is unparalleled in the world, but the benefits of economic progress must reach the common and poor people of the country, without which India would not be able to call itself a developed nation."

Asked what according to him should be India's priorities for all-round development in the country, he said, "Education and health need to be given priority in India.