Mehta advocates caution

Mehta was speaking at a symposium on 8220;The industrial scenario in Gujarat and the current economic policy8221;, organised by the economic policy cell of the Gujarat Pradesh Congress Committee here on the Southern Gujarat Chamber of Commerce and Industry8217;s SGCCI premises.

He clarified that he was not against liberalisation while accusing politicians and bureaucrats of fooling people in the name of these buzz words which, they were told, would bring prosperity overnight. 8220;They create an illusion8221;, he said.

There was a huge distance between liberalisation and globalisation, he said, adding that the country had gone too far in accepting the latter before liberalisation had come into its own. The only thing that attracted MNCs to South-East Asian countries was the cheap labour they had to offer. The whole idea was to use the cheap labour and export the goods. The approach had played havoc with local industries, he said.

He criticised the Gujarat government and its chief ministers for boasting about investment figures by big companies, including Indian companies, while ignoring local industries. 8220;They roll out the red carpet for big houses at the cost of local industries8221;, he said. When big companies spend three crores they create one job, he claimed, flaying the government for giving short shrift to local industries that have the potential to generate lakhs of jobs. 8220;Opening gates for MNCs will not help. You have to protect your backyards and assets, 8221; he said, citing examples of how the entry of MNCs had made life difficult for Indian products, which once enjoyed a monopoly.

Jamnagar8217;s brass industry, Surat8217;s powerlooms and ceramic industry were among the examples of what government neglect could bring about, he said. The Gujarat government8217;s flagship companies like GSFC, GACL and GECL were doing so badly that some of them could not declare dividends this year.

Floriculture, horticulture and the dairy industry also held promise. The World Trade Organisation was a double-edged sword, which had benefits and pitfalls in equal measure, he said.

Chairman of the Federation of Indian Art Silk Weaving Industry Arunbhai Jariwala, diamond merchant Sevantibha Shah and former president of SGCCI Rajendra Chokhawala also spoke on the occasion.