
Aman Chadda, Chairman of EEPC, Photo By www.nicevideophoto.com
“We always say that if you want 10 million plastic buckets, go to China. You want a good engineering product which will fit into your aircraft or vehicle; come to India where the quantity is also low and you get high-class manufactured products.”
“There is no Indian bureaucracy. There are no trade barriers. India welcomes foreign partners. That’s why we are here. We’ll facilitate foreign business..we’ll put them in touch with the right people. India is different India than it was 20, 30 years ago.”
The Indian “mela” of engineering and manufacturing industries took place between October 17th and October 19th at Direct Energy Centre. More than 154 Indian companies were in town to impress the Canadian market with Indian “Indo-vation” and value added products.
Generation Next got an opportunity to chat with Mr. Aman Chadda, Chairman of EEPC. EPPC is an organization that represents more than 12,000 engineering manufacturing companies of India.
While we expected Mr. Chadda to be lackluster, he turned out to be a very ji dar kind of Punjabi gentleman. In his lively, yet frank manner, he responded to our blunt questions.
The purpose of having 154 companies come at one time is to “to draw attention..people do stand up to see you when you are in a large group..we want to make noise, so that people know that India is here..they may not do a lot of business today..but we are looking at long term business,” stated Mr. Chadda as he leaned forward on his sofa at the lobby of King Edward Hotel in Toronto.
The Indian engineering market’s strength is such that “We are at roughly $39 billion,” said Mr. Chadha. “Last year we did $60 billion in exports, that’s about 25 percent of the total exports of the country that came from engineering. We should close the year close to $80 billion, that’s still a 20 percent plus growth.”
While there is a lot of talk in town about Canada India free trade agreement, expected to be signed between the two countries in 2013, there is also a recognition that trade between the two countries is “very very minimal,” noted Mr. Chadda. Within engineering sector, this trade stands at $265 million only. India exports nearly 40 per cent of its engineering goods to Europe.
EEPC’s expectation; however is to triple the trade in engineering sector within three years’ time. “Wherever we go, we double the figure in under three or four years’ time,” said Mr. Chadda proudly.
Canadian Minister of International trade Minister Ed Fast has noted that the Canadian government is also looking into parallel agreements on human rights and environment with India. What does India think about it?
Mr. Chadda’s prompt response was “I am sure that’s what the government wants. The government doesn’t want..child labour in factories. Someone does that down the lane. There is a penalty cause for that..The government doesn’t want to do it, people do it…and we do clamp down on it. You can’t hold the government responsible…I’m sure in Canadian factories, there are also issues of..visa violations etc.”
An entrepreneur and not the engineer himself, Mr. Chadda does tire business in India. Among many engineering sectors, India’s automotive and agricultural sector is known for its high quality products, stated Mr. Chadda.
Green Energy technology, said the Chairman of EEPC can be hugely beneficial to India. Using analogies from his business sphere, he said green technologies are crucial, especially when the governments are “tightening the screws on pollution.”
The highlight of the India Show at the Canadian Manufacturing Show is $3,500 TATA Nano car, Reva’s electric car and electronic ballot machine that is used by nearly 700 million Indians to have their say in the democratic process.
In his opinion, electric car can gain traction in the Canadian market. Mr. Chadda was quite surprised at how the lights of buildings in Toronto are left turned on when there is no one there at nights.
When told that Ontario actually gives away its electricity to Quebec and New York for less than the cost that Ontarians pay, Mr. Chadda was appalled.
“Wow!” was his prompt reaction. “Why don’t they export it to India?”
This is something that, perhaps, Premier of Ontario should ponder over and work with an Indian company to develop technology to export Made in Ontario electricity to India.
Are products like TATA NANO car and $35 Aakahsh tablet PC sustainable and reliable?
In his response Mr. Chadda noted that Aakash tablet was designed by a Montreal based company called DataWind and manufactured at low cost in India. The designing of the product in North American and European markets may enhance acceptability of Indian products in North America and Europe.
Why, then, there is this impression that good products are not manufactured in India?
“We are into value-added products, we’re into high-engineering products,” he responded as if he was expecting the question. “We always say that if you want 10 million plastic buckets, go to China. You want a good engineering product which will fit into your aircraft or vehicle; come to India where the quantity is also low and you get high-class manufactured products.”
In 2009-2010, Indian engineering exports declined. Why?
“Global meltdown. Everyone had the problem,” he said as if it was obvious. “But we came the tops with 110 per cent growth rate,” added Mr. Chadda proudly.
We asked Mr. Chadda what he thinks about protest like “Occupy Wall Street” and “Occupy Bay Street.”
“It’s the problem that is affecting the whole world..We have to help the global economies,” he said.
“So you support the idea of bailouts,” we asked.
“Of course!” After a moment’s thought he added “..to certain extent..but if there’s a bailout after another bailout after another bailout then it should be amputated out,” he responded.
“Greece should be amputated out then,” we asked.
“Yes. There’s no other option. I foresee that happening.”
How will Indian markets be affected if there is another recession?
“We have heard of double dip and all the other sets of alphabets. We foresee the next six months to be tough. Our main market is European Union. We are diversifying. Not aggressively but we are promoting Brand India,” he said.
The message to Canadian businesses is that “We are diversifying, that’s one of the main reasons we are here in Canada promoting our ‘Brand India,’ promoting our luxury goods, letting the people know that we are capable of what they have not seen, said turban wearing Chairman of EEPC. “Many times they don’t even know that India is capable of producing, manufacturing these products.”
What is EEPC members’ trade like with SAARC countries?
“We hardly do any trade with them [Pakistan] because of the political situation..lots of trouble with economy..terrorism,” said Mr. Chadda somewhat reluctantly. “Bangladesh is a good market. Sri Lanka is developing…many Indian tire companies have manufacturing bases in Sri Lanka.. because rubber is available there,” he added. With Thailand, India does about 15 – 20 per cent of the trade.
In his opinion, creating a uniform tax and custom duty system worldwide will “level the playing field for everybody.”
Mr. Chadda urges Canadians to think of Indians as partners.
“I would say, please, greet us with open arms, we are not here to take jobs,” he said. “We are here to work in cooperation. We need Canada because they have the technology..we are good at low-cost manufacturing,” he said pleadingly.
India has invited 50 Canadian companies in March 2012 “in good faith”, said R. Maita, Executive Director of EEPC. He added that India has also invited 15 Pakistani companies to visit India next year.
When asked how Indian Diaspora in Canada can help Canada-India bilateral trade, he laughingly answered, “I think they should start trading with Indian partners as soon as possible.”
But there is so much red tape and bureaucracy in India, we pointed out.
“There is no Indian bureaucracy. There are no trade barriers. India welcomes foreign partners. That’s why we are here. We’ll facilitate foreign business..we’ll put them in touch with the right people. India is different India than it was 20, 30 years ago,” he said emphatically.
By Asma Amanat