Kerala - Kochi   

`Cola ban will send wrong signals to investors'

Special Correspondent

Assocham to take steps to set new standards in food safety

KOCHI: The decision of the State Government to ban Coca-Cola and Pepsi might send the wrong signals to the international community and "it is an extreme act," said Anil K. Agarwal, president of Assocham. Instead of banning the products, the Government should have given the companies equal opportunity to clarify their position and amend the situation, he said.

Mr Agarwal, who was here in connection with the 149th AGM of the Cochin Chamber of Commerce and Industry, said at a press meet that Assocham would initiate steps to set new standards in food safety, as the existing ISI and BIS standards were outdated. "We have to set the standards as per our living

conditions," he said adding that sector-wise approach was needed for upgrading of quality standards to fulfil the vision of making India a manufacturing hub.

He said the State Government should also take sincere efforts to attract FDI for the growth of the State. He said things were improving in the State but not at a fast pace.

"What is needed is getting consolidated FDIs. For this, the Government should make the FDI policy business-friendly," he added. Assocham is of the view that Kerala lacked infrastructure that is vital for manufacturing. Most important are power, communication and transportation. Short supply of reliable and cost-competitive power and blackouts would disrupt manufacturing and specially discourage investments in industries such as rubber, plantation, etc.

The current labour laws in Kerala discourage productivity and employment opportunities, as Indian manufacturers have to deal with many inspectors and other State agencies from time to time after starting business and in the course of business also. This certainly takes away lot of time and increases the cost of production by way of higher transaction costs, he said. He emphasised the need for enhanced focus on manufacturing and services to ensure creation of larger employment opportunities in all States, including Kerala. The larger employment opportunities could be created when manufacturing grows at 12 per cent and the services contribution to GDP exceeds 60 per cent in the near future to ensure that enough employment is generated in these two sectors.

The Chamber has suggested a four-point strategy urging all State Governments to take initiatives to remove bottlenecks that impede industrial growth in the areas of infrastructure, availability of funds for investments, employment and labour laws and high transaction cost.

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