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Globalization
and Competitiveness of Indian Auto Component Industry
Page 3 of 3
Figure –B: Seamless Global
Integration.
The figure-B explains that the
firms, government and the associations should have seamless
interaction with their counterparts globally. There can be
cross integration with other organizations e.g. the
associations can leverage advantage with global auto majors.
There has to be integration of Indian entities with global
knowledge and resource base. Leveraging advantage can help the
government, firms and associations to expedite the process of
competitiveness.
Formulation of Task
Force:
Apart from the roles, that the Government,
associations and the firms play individually in creating a
competitive environment the researcher recommends a Special
Task Force. The objective of the task force shall be to
support Government and firms to create competitive
environment. The figure-C explains the role of a task force.
The
task force shall be an autonomous body and should be
independent in its functioning. It should have operating
teams, which are represented by the Government, industry
associations, research and development organizations and the
financial institutions. A national institute of
competitiveness should be formed to carry out research on
competitiveness and educate professionals in competitiveness.
Panels of industry stalwart and international advisors should
support this operating team.
The task force should have enough authority to
recommend and enforce implementation of strategies to the
government, associations and other bodies and it should carry
out barometric check for competitiveness of firms and the
nation.
The task force should develop barometers for
measuring the competitiveness of the country, the firms and
efficiencies of associations. The role of the task force shall
be service, advice and control.
The task force shall recommend the financers to
finance companies which are competitive and recommend various
concessions for companies measuring high on competitiveness
and would carry out audits periodically to ensure that the
concessions are not misused. They would give ratings like
crisis ratings for the firms and based on the ratings they may
be offered concessions and loans at lower interest rates and
priority service from government bodies.
National Institute of Competitiveness-Recommendation.
It is
observed that due attention to the knowledge of global
competitiveness is not given in the current situation. Though
the awareness is increasing in all sectors but at the grass
root level, there is no awareness of the concept of
competitiveness. Infact the core intention of business is
competitiveness today. Profitability and growth is a result of
competitiveness. If the firms cease to be competitive,
profitability and growth cannot last for long.
The
systematic and scientific knowledge of competitiveness is the
key to preparedness today. Right from the country, head to the
last employee in the firms the awareness is needed. Apart from
knowledge, there is need for continuous research on the
subject.
In the task
force model ‘Figure-C such a National institute will provide
academic support to the task force.
It is
strongly recommended that a National level Institute for
Competitiveness should be formed with sole objective of
carrying out research and imparting education.
Summary
There needs
to be a serious and an integrated approach from the
government, associations and the firms manufacturing auto
components. In order to chanelise the efforts a task force is
needed. The task force should develop a blue print for all the
three participants and monitor their progress. A certain
degree of empowerment should be provided to this autonomous
body. The task force should formulate strategies and should
carry out competitiveness assessment periodically to assess
the effectiveness of the strategies.
At firm,
level researcher strongly recommends that the component
manufacturers should go up the value chain and evolve into
module/system supplier in order to exist and prosper.
There are immense opportunities for firms to prosper and
the government has been responsive towards the challenges of
globalization. Reforms are being carried out but the pace of
reforms and their implementation have to increase. The
government should focus on its function of governance and
create a favorable business environment to nurture
competitiveness. Association needs to revolve as facilitators
with accountability. More aggressive and directed role is
expected out of them.
Overall, a
very encouraging future is anticipated for the firms with
proactive leadership.
Author
Profile: -
Dr
Vasant.Khisty,
is working as Vice President Business development with
Fairfield Atlas limited with its head quarters in USA. He has
received his PhD. From Pune university on the topic:- Global
competitiveness of Auto component manufacturers. This article
summaries some of his findings. He can be contacted at
9822322690 or
khistyatlas@vsnl.net.
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