Encouragement of domestic manufacturing of world-class standards, either by domestic or foreign investors or both, has not been a major objective of our essay make in india in hindi foreign trade policy so far. Our foreign trade policy must recognise that encouragement of domestic manufacturing of world-class standards, catering solely even to our own market, is a preferable alternative to protection and subsidisation through high tariffs, trade remedy measures and financial giveaways. Rather, the policy must encourage freer imports of capital goods, industrial raw materials, components, tools and devices, as well as technology-laden imports, with a view to upgrading the quality and competitiveness of our domestic manufacturing. Fourth, the importance of the protection of intellectual property rights (IPRs) in the scheme of attracting foreign investment and establishing high quality domestic manufacturing must not be overlooked.Ensure IP protection, iPRs do not consist only of pharmaceutical patents as is commonly understood in our country: they include as well copyright (computer software in our country is protected by copyright trademarks, trade secrets, geographical indications, designs, trade secrets, business confidential information and data. Even if our IPR policies do not have domestic manufacturing as a central objective, they need to be implemented in such a way that they do not impede or deter technology-oriented domestic investments from foreign investors. The protection of patents, trademarks, trade secrets, layout designs and the like is crucial to these and other sectors where we want foreign investment of high quality with modern technologies.Our intellectual property laws are largely in conformity with international standards as reflected in the trips Agreement of the WTO and other international conventions to which we have subscribed. Yet we tend to create an impression around the world that we do not value intellectual property or respect its adequate protection. One other aspect that does not fall within the ambit of the aforesaid policies, but which is crucial to competitive domestic manufacturing needs to be touched upon here. Among the major reasons for our domestic industry being competitively disadvantaged vis-a-vis the rest of the world, two stand out prominently: first, the inadequacy and poor quality of our infrastructure, and second, the high cost of our capital.
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