Letters: Managing national resources | Business Standard Letters

Letters: Managing national resources | Business Standard Letters



Also read the submitted version copied below:

September 24,  2014
The Editor
Business Standard

Letters

Costs, prices and
profits

This refers to the report “Ratan Tata for low-cost
manufacturing”(September 24). The short report covers Ratan Tata’s vision about
doing business in India excellently well. The Tata NANO experiment can never be
considered a failure. Through NANO, Tata demystified the cost-benefit concept.
The company exposed the per unit profit margins enjoyed by manufacturers of
goods by factoring in high prices for luxury, comfort and the feeling that only
a privileged few own certain goods.
With reference to Tata’s observation that ‘We have foreign
exchange reserves large enough for Indian companies to look at acquisitions of
international companies to fill a product or a technology gap’, without
disputing the accuracy of the statement, one would like to add that India is
yet to even measure the country’s resources including gold. The government
should own up responsibility for not exploiting and managing nation’s resources
for the welfare of the people.
Just measuring poverty by a different scale and enjoying over
slight improvement, viewed from any angle, is agonizing. Tata will speak about
car, steel and a couple of other commodities or services, Murthy will talk
about what Modi should do in US to improve the fortunes of software industry,
but it is the responsibility of central government to map and manage nation’s
resources to exhilarate growth that will benefit majority of Indians.


M G Warrier, Mumbai 

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