States should play major role in promoting industries:Montek

Mysore, July 31 (UNI) Planning Commission Deputy Chairman Montek Singh Ahluwalia today admitted that the manufacturing sector in the country had been hit a roadblock in their development by poor infrastructure and hence could not keep pace in development with the Information Technology sector.

Addressing newspersons after inaugurating the fourth Software Development Centre of Software Major Infosys here, Mr Ahluwalia said it's not that nothing had been done in the infrastructure, ''but much more needs to be done''.

''The manufacturing sector had the necessary wherewithal to deliver goods'' he added.

Mr Ahluwalia said for the first time in the country we have a handful of companies that were capable of providing ideas and initiatives to reshape the policy of the government both at the state and central level.

''In our perspective the government is open to ideas from outside'' Infosys was one of those companies he said adding that it was unique since it was young when compared to other companies which had legacy benefits, he added.

Mr Ahluwalia said besides the Central government it is the states who need to open up for such suggestions. ''we have more than a handful of chief ministers who are now open to ideas''. The states have emerged as competitors for investment.

He said these companies should also come out with proposals to the state governments, unlike the pre-licence raj, the states now had a major role to play in promoting industries.

Replying a question on tax holidays that had benefited the IT sector, Mr Ahluwalia said it was not the tax subsidies alone that had benefited the IT sector, all companies involved in exports had benefited. There were other factors such as support systems and the policies of companies that enabled IT companies to do well.

On being asked whether China posts a threat to India, he said India should see China as a competitor rather than a threat.

Hitherto, India had been insular in its thinking that a developing country could not compete in the world. However, China had shown the way and emerged a competitor to the developed world in the manufacturing sector. India need not fear competition from China and move ahead.

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