Over years we have seen reduction in life cycle of ICTE products. Any mobile phone sold in the country at any price carries only 1 year warranty. A PC carries maximum of 3 year warranty on certain components.
I remember the first refrigerator, Godrej Cold Gold, that we purchased in 1990. It came with 7 years warranty but after signing WTO agreement in 1991, there had been sharp decline in product lifecycle. This decline can be attributed to low quality and cheap components coming mainly from China.
The last refrigerator that I purchased was from Samsung in 2008 which had only 1 year warranty but at price 20 per cent higher to the one I purchased in 1990. Price of 10 gms of gold at that time was in range of Rs 5000 and in 2008 it was below Rs 15000. Hence in a way the value of money has declined by almost 33 per cent. By this I mean that in 2008 if I had to purchase that same quality of refrigerator, I had to pay 13 per cent more for a product that had 7 years warranty compared to the one with only 1 year warranty.
Will anyone mind in paying this extra cost for a quality product?
But this price differentiation has killed Indian manufacturing industry and has presided over quality. The weak consumer laws in India gave space to low quality component and product in India.
Some people may argue that Indian customers are price sensitive and will prefer low priced product over quality. It is for them I would like to point out the rising market share of foreign brands in Apparel and accessories segment. Majority of Indian customer who preferred to fill tap water from railway stations have now switched to packed mineral water and readily pay price for quality water which they got for free.
It is time for government of India to act in interest of consumer now and draft strict quality norms. Further certify product qualifying the quality norms like Europe’s CE mark. The increase in quality of product will lead to increase in price of components and product being imported from abroad. This in-turn will bring prices of made in India product at par with that of imports which will create space for quality Indian products. In long run, even global customers will prefer to buy made in India product for its quality. Indian brands can really make difference in global market with support of government. While China, considered to be major threat to Indian economy, has been supporting its companies to capture markets even through unethical means, India only needs to give level playing field to Indian manufacturers and act in interest of consumers.
Instead of becoming a threat to Chinese product, most of the Indian manufacturers partnered with Chinese company and turned in to trader. This is the best path they saw to move in absence of Indian government support.
Chinese companies have been capturing most of Information and Communication Technology and Electronics (ICTE) product segment by the support of policies from its government. Other developed economy also supported there indigenous companies in spreading wings overseas but US and European economy could not hold everything because of pressure that heavy wages exerted on cost of services and product.
India had an opportunity to play on this front but myopic bureaucrat and politician of the country failed to see the opportunity.
Today India’s import of ICTE is surpassing oil import bill. Trade deficit of India is over 30 per cent and increasing. This is wake up call for government of India to save their economy.
There is still room for innovation and India ha potential to capture world market by making Made in India a synonym of Quality, reliability and durability.
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