Lord Paul concerned over neglect of manufacturing

LONDON: Citing rush of western leaders to visit India, Lord Swaraj Paul has hit out at them for paying "obeisance" to manufacturing abroad while neglecting it at home.

Lamenting decline of manufacturing in Britain, the NRI industrialist told the House of Lords yesterday that in the 30 years, its contribution to the Gross Domestic Product (GDP) has declined from 30 per cent to 11 per cent.

Despite 400 per cent increase in the UK economy, Lord Paul said, "we have fewer than 2,000 factories employing more than 200 workers each".

On the other hand, he added, countries like China India, Brazil and other emerging economies have seized the opportunities and were focusing on manufacturing.

"Look at the numerous visits that Western leaders now make to these emerging economies...Statesmanship is now salesmanship," Lord Paul said.

The neglect of manufacturing, he added, "is surely the Grand paradox of our age -- leaders who pay obeisance to manufacturing abroad while tending to neglect it at home".

Those engaged in manufacturing are still waiting for the government to put into practice an effective industrial policy, he said, pointing out, "every UK government begins by saying it wants to help manufacturing".

Describing manufacturing the bedrock of independence, Lord Paul said, "with sensible policy corrections, (it) can be a powerful source of steady employment and social stability".

The government needs to stimulate small enterprises by giving them special capital allowances and lowering tax burden, he suggested.