K Ramaswamy, President, Federation of Karnataka Chambers of Commerce and Industry (FKCCI), who recently led a trade delegation to China says that industrialists including the entrepreneurs of small scale industries should strive towards producing quality goods that meet international standards. With the China tour, a visibly inspired Ramaswamy has lots of praises for Chinese achievement in the field of Information Technology and other industrial sectors.

Ramaswamy in an interview to bangalorebest.com shared his experiences and perceptions of his China tour. He also expressed concern about the trade and commerce in Karnataka and many other contemporary developments in Karnataka's trade and development scenario.

What do you observe as unique in China's industrial sector?
The development achieved by Chinese in the industrial sector is wonderful. It is due to the massive encouragement given by the Chinese Government to the industrial and Information Technology sectors. We visited Shenzen City, one of China's magnificent cities. Just 10 years ago Shenzen city was only a fishing village. Today it has turned into a wonderful city and has amazing infrastructure for industrial development. The city is a hub for IT related and Bio-tech industries. Our delegation attended 'Guongjhow' Trade fair (or Canton Fair) in Shenzen City, where products from all over the world were on display. Automobiles, electronic goods and computer peripherals were the highlight of the trade fair among other products.

From Shenzen City we went to Shanghai, the commercial capital of China. Inside Shanghai, we visited Pudong one of China's industrial hub which boasts of some of the best infrastructure for industrial development. All over Pudong, multi-storied buildings have come up. The flyovers in the city are really amazing. In Pudong, some of the Indian corporate giants like Bajaj, Dr Reddy Laboratories and Ajanta Clocks have set up their plants.

What are the immediate plans of FKCCI to boost up trade with other countries?
FKCCI is planning to open 'Karnataka Trade Centre' at Sharjah in Dubai. We hope that the proposed International Air port at Devanahalli will help a lot in promoting trade between Karnataka and UAE.

With the Bangalore International Airport becoming a reality soon, what sectors would benefit most?
Once the international airport becomes a reality in Bangalore, the city will definitely hit the global market since the city is a hub for every trade. Especially perishable goods like flowers and vegetables will get international market. Pune was leading in Indian floriculture. Now Bangalore has taken over Pune. Within three and a half hours, vegetables and flowers would reach the markets abroad once the international airport becomes operational. It will be a boon especially for the farmers. Similarly for textiles and silk industries.

What are the major problems faced by the trading community in the state?
Power is the major problem for industrial and trading activities in the state. In the recent budget also the State Government has made many complicated rules pertaining to the taxes. For example: Entry Tax on textiles, Luxury Tax on Silk Fabrics are newly levied. We have requested the Chief Minister, S M Krishna to liberalise the tax system in the state. Compared to the neighbouring states like Tamil Nadu, Karnataka is slow in reforming the tax structure. Infrastructure (roads, power, transportation, etc.) is still the major problem of the trading and industrial community.

How is the response from the State Government to the pleas of traders?
The Government of Karnataka is striving to provide better infrastructure to the industries and traders.

With the IT revolution in Bangalore as a backdrop, what are the organizational changes made to FKCCI?
A sub-committee on IT has been formed within the FKCCI. We had conducted a day long seminar on venture capital. We are also planning to install 'touch screen kiosks' within the premises of FKCCI, which will give trade and commerce related information of Karnataka State.

Any further developments in bio-technology after the Bio.com event in the city?
No. So far, no notable projects have come up after the Bio.com held in the city.

How is the situation for Small Scale Industries in Karnataka?
Not really good. 50 per cent of the Small Scale Industries (SSIs) in the state are still sick. The Government of Karnataka is striving to rehabilitate and rejuvenate them. We have demanded the State Government to come out with new policies for the Small Scale Industries. My message to the Small Scale Industries is that, a group of SSIs, at least 10 of them in each group, should join together and produce quality goods that match the WTO laid international standards.

What is the total number of members of FKCCI?
FKCCI has 2,500 members, which include 116 trade associations affiliated to FKCCI.

What are the main upcoming events of FKCCI?
An international event, Asia Pacific Enterprise Summit from August 12-14, this year, is slated to be held in Bangalore. The event is jointly sponsored by the Government of Karnataka, FKCCI and Singapore Federation of Chamber of Commerce and Industry. 12 countries are going to take part in it. The theme of the summit is to promote trade between India and the summit delegate countries.

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