India must focus on manufacturing

By siliconindia staff writer   |   Monday, 24 November 2003, 08:00 Hrs
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NEW DELHI: Global consultancy firm ATKearney on Sunday said India should focus on manufacturing sector rather than putting emphasis on services at this stage and expressed keenness to work with the government in restructuring and privatisation.

“Instead on relying heavily on services, at this point of time, India should focus on manufacturing.

This has been the trend worldover, including China,” visiting ATKearney chief executive officer designate Heinz Ludwig Klein told a news conference in New Delhi.

So far India has benefited by focusing on services, largely due to low cost and a superior education system which would not be sustainable in the long run, he said.

Admitting that the international consultancy firm would have done better in the late 90s in India, he said “the idea of opening Mumbai office is under active consideration”.

“We are also ready to bring our expertise in the restructuring of the government itself and its endeavour to privatise a number of companies,” he said.

The firm has already been working on such projects in the UK, he said adding “the UK is more open to take outside support.

However, it is to be seen how much the Government is ready to pay”. Asked about the areas where ATKearney could lend its expertise, he said tax collection, national healthcare system, pension and childcare could be the areas to work.

Terming India as a “not so matured” consultancy market, Klein said “the impression that if one opts for consultancy services, it is admission of non-performance.

In this context, even China is not a developed market”. ATKearney, a global consulting firm provides high-value management consulting, and helps clients navigate the challenges on the Chief executive officer’s agenda.

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