Should India Follow China To Make Homegrown Manufacturers World Class?

[visran]

Should India follow China to make our homegrown manufacturer's world class?
china has recently proposed a list of cars that government departments will be limited to buying in 2012.According to the list issued by the Ministry of Information and Technology the government has authorized 412 different models for Chinese party cadres to buy with government money, every year the government spends some 80 billion RMB on bringing new cars into the government fleet, for the longest periods of time,these cars were of course foreign and Chinese cars but going forward they will all be Chinese cars from Chinese brands.
In return one point government has made very clear is that manufacturers that do take part should invest around 3% of their earnings back into R&D.

Should India follow this concept and make our homegrown manufacturer's work hard to get the contract in return invest some portion of the money back to R&D and make our car's globally competitive?

[S Class]

I don't think so that this will work. In China, the cos are dependent on Govt & most of them are PSUs or major holding of govt.
In India, car makers are already mature to take competition head on.
It can be Tata buying JLR, Daewoo CV, M & M Ssanyong, etc.
And we have Nano, XUV built here. I am sure 5-8 yrs down the line, Indian car makers will make a mark for themselves, though most of it may come from M & As.

Btw, we already M & M jeeps in police, army, so are tata trucks & indigo & manzas in govt dept.

[Umang]

i agree! it will encourage indian cars. india already has amby for politicos but HM should think about making it modern then govt can restrict it for this use!