Queried about the scam at the Punjab National Bank
(PNB), Mr. Krishna cautioned the Centre against taking
any knee-jerk action just because a few industrialists
had duped public sector banks.
“What happened in the case of Punjab National Bank is
unfortunate. [But] even Lehman Brothers Inc. collapsed
despite strict controls, in the U.S.,” he said.
He said public faith in the banking system had been
dented in the wake of the fraud as defaulters had fled
India.
“There will be certain apprehension in the minds of the
public. There is no doubt,’’ he said.
He felt that the government should not go in for any
knee-jerk action similar to the one taken in Satyam
Computer Services’ scandal. He said one should not lose
faith in the banking system just because of one [PNB]
failure. “It will be a great error. You have to trust
the Indian banks. You have public sector banks, private
sector banks and reputed banks in the country. It is up
to you to make your own judgement. We need to carry
on,’’ he added.
Having experienced a challenging period for the
manufacturing sector from ‘60s to ‘90s, Mr. Krishna said
he had always remained optimistic. Asserting that India
was capable of producing quality products of
international standard, he said he was against levy of
taxes in the guise of protectionism.
Imports to be hit
Referring to the recent announcement by U.S. President
Donald Trump on tariff on steel and high-end bike
imports from India, he said: “It is not good for any
economy to put higher import duty. It will definitely
affect imports. After the U.S., China will do it.
“One should have an open economy to be the best in the
world. Or else, it will become uncompetitive. And, you
will not be able to compete in the other markets,” he
said.
Pointing out that India was doing well in automobile and
auto components, Mr. Krishna said: “We are becoming one
of the largest producers of auto vehicles in the world
by producing three million cars and 15-16 million
motorcycles every year.
“We are in a sunrise industry. We will be number three
or four very quickly. It is only a matter of time. [The]
same may apply for bus, trucks, off-road vehicles and
excavators.” He felt that the country could absorb 10
million cars and 50 million two-wheelers. Personal
transportation was a common aspiration of the middle
class in India, he said. He estimated about 30-40
million people to be in the middle class bracket.
To a question, he said it would take more than 20-25
years for the country to realise its dream of fully
moving over to electric vehicles. The industry and the
users, he said, had to deal with three vital issues —
type of battery, its disposal mode and infrastructure
such as charging stations.
“The battery technology has to improve. We have to see
whether the industry opts for lithium or cobalt,’’ he
said. Battery should not be viewed just a component of
cost of vehicle alone. Its impact on the cost of
ownership also mattered, Mr. Suresh Krishna added.
To a question, he said the latest Budget of the Centre
was pro-farmer. “I do not agree that they are going back
on reforms. There are certain exigencies. They are doing
quite well.’’
Source::: The Hindu,
dated 04/03/2018.