Kolkata: Sentiments are in its own place and business is in its own, but import substitution is not an easy task, said the President of the Merchants Chamber of Commerce and Industries (MCCI), Vivek Gupta, in an exclusive interview with ETV Bharat.
“Emotion is in its own place, business is in its own. Our sentiments, emotions, feelings - are all with the martyred soldiers. No doubt about it. But import substitution is not an easy task," says Gupta.
Not only what is the substitution, at what rate - is the bigger issue, continues Gupta. Moving away from China might lead to substitution at a higher cost. If the buyer is ready to buy at a higher rate, then there is no issue.
Gupta questions, But would that be so easy? Would people buy at a higher price? People know, they can't confide in Chinese products. It may run for years or hours. But people are ok with it. They are accustomed to taking the risk at a low price. Would that happen, if things are imported from Australia, Vietnam or Cambodia?
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"Indians have never invested in design and innovation. We could not even make a pencil or a sharpener in a different design to give it attractive. We likely have not been able to rise up from that copy-paste or “Jugaad” mindset," he added while speaking to ETV Bharat's Deputy Editor, Partha Pratim Ghosh Roy.
On being asked, why there is such a huge dependence on China and where we went wrong, Gupta said, China has better infrastructure, the better support system at any point of time, than India. “We have checkposts system in our country."
An Indian entrepreneur has to fight all alone to win the race. Gupta mentions, in the emergency credit scheme that the government has announced under Atmanirbhar programme the minister is announcing that the interest charge from the bank will be 7.5 to 8.25 percent and maximum 9.25 percent. All banks are going to charge at 9.25%. Who will charge at the rate of 8 - 8.5%?
USISPF (US India Strategic Partnership Forum) has expressed their concern over import issue (from China). They are of the opinion, that even their production would get disturbed if imports from China are restricted in a way and the same they have conveyed to the revenue secretary informally.
But Gupta feels that is not a point of concern at this moment. Any country while investing in another, should not fully dependent on a third country. That is not a business rule.
