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Scrap SSI reservation



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Today we are faced with the chinese threat of low-cost high quality
goods in
sectors ranging from bicycles to batteries. With Quantitative
restrictions
to be lifted in April, 2001, we face the very real prospect of being
inundated with chinese goods.

India is being faced with the chinese threat in all quarters economic,
political and military. We have to fight them on all fronts if we are to

emerge as a world leader in the 21st century.

With regard to matters economic, we have to scrap SSI reservation
otherwise
Indian companies will be buried by Chinese imports.

There is no rationale for protecting small scale industries for a number
of
reasons
(a)SSI reservation assumes that one set of producers are more important
than
consumers and the rest of the economy.
(b)SSI reservation punishes success, and people who get too big are
stripped
of their benefits. Therefore people have a vested interest in keeping
their
units small.
(c)Assuming that these small-scale producers are privileged and deserve
to
be protected, when chinese imports flood India they will be wiped out.
So
the government has sown the seeds of destruction for the very same
people
they claim to protect.
(d)The assumption that their livelihoods are to be protected assumes
that
India has to stay in the stone age just because they aren't flexible
enough
to learn new skills. When all of us in the rest of the economy have to
compete and constantly improve to keep our jobs, why allow these people
to
live off the rest of the economy.

The malaise that is keeping India chained is that we try to protect
vested
interests and groups of people in the name of national interest. There
is no
such thing as "national interest" and protecting someone is ALWAYS at
the
expense of another.

Regards,
Gautam



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