MANUFACTURING advances often take time to catch on. Only later does their real significance become apparent. The flying shuttle, invented in 1733 by John Kay, a British weaver, allowed the production of wider pieces of cloth. Because its movement could be mechanised, the shuttle later became one of the innovations which paved the way for the Industrial Revolution.
In 1913 Henry Ford brought motoring to the masses by making his Model T on a moving assembly line; but it was Ransom Olds, a decade earlier, who had come up with the idea of an assembly line to boost production of the Olds Curved Dash.
Throughout the 1980s factory bosses scratched their heads over Taiichi Ohno’s Toyota Production System and its curious methods, such as the just-in-time delivery of parts. Now it is the global benchmark for factory efficiency.
What, then, to make of the potential of Chuck Hull’s invention in 1983 of “stereolithography”? Mr Hull is the co-founder of 3D Systems, one of a growing number of firms that produce what have become known as 3D printers.
These machines allow a product to be designed on a computer screen and then “printed” as a solid object by building up successive layers of material. Stereolithography is among dozens of approaches to 3D printing (also known as additive manufacturing).
Printing has become a popular way of producing one-off prototypes, because changes are more easily and cheaply made by tweaking a 3D printer’s software than by resetting lots of tools in a factory. That means the technology is ideal for low-volume production, such as turning out craft items like jewellery, or for customising products, such as prosthetics.
Dental crowns and hearing-aid buds are already being made by the million with 3D printers. Because it deposits material only where it is needed, the technology is also good at making lightweight and complex shapes for high-value products ranging from aircraft to racing cars. GE has spent $1.5bn on the technology to make parts for jet engines, among other things.
But sceptics still rule the roost when it comes to goods made in high volumes. They say that 3D printers are too slow and too expensive—it can take two days to create a complex object. Unlike the techniques pioneered by Kay, Olds and Ohno, additive manufacturing will never revolutionise mass production. Such scepticism looks less and less credible.
Some of the new methods of 3D printing now emerging show that its shortcomings can be overcome. Adidas, for one, has started to use a remarkable form of it called “digital light synthesis” to produce the soles of trainers, pulling them fully formed from a vat of liquid polymer.
The technique will be used in a couple of new and highly automated factories in Germany and America to bring 1m pairs of shoes annually to market much more quickly than by conventional processes. A new technique called bound-metal deposition has the potential to change the economics of metal printing, too, by building objects at a rate of 500 cubic inches an hour, compared with 1-2 cubic inches an hour using a typical laser-based metal printer.
As in previous manufacturing revolutions, factories will take time to be transformed. The dexterity of human hands still beats the efforts to introduce the fully automated production of clothing, for example. But automation is spreading to every production line in every country, and 3D printing is part of that trend.
As wages in China rise, some of its mass-production lines are being fitted not just with robots but the first 3D printers, too. And as global supply chains shorten, bosses will want to use additive manufacturing to tailor products to the demands of local consumers. The full consequences of the technology’s spread are hard to predict. But when they do become clear, Mr Hull’s name may well be bracketed with the likes of Kay, Olds and Ohno.
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Petrol in India is cheaper than in countries like Hong Kong, Germany and the UK but costlier than in China, Brazil, Japan, the US, Russia, Pakistan and Sri Lanka, a Bank of Baroda Economics Research report showed.
Rising fuel prices in India have led to considerable debate on which government, state or central, should be lowering their taxes to keep prices under control.
The rise in fuel prices is mainly due to the global price of crude oil (raw material for making petrol and diesel) going up. Further, a stronger dollar has added to the cost of crude oil.
Amongst comparable countries (per capita wise), prices in India are higher than those in Vietnam, Kenya, Ukraine, Bangladesh, Nepal, Pakistan, Sri Lanka, and Venezuela. Countries that are major oil producers have much lower prices.
In the report, the Philippines has a comparable petrol price but has a per capita income higher than India by over 50 per cent.
Countries which have a lower per capita income like Kenya, Bangladesh, Nepal, Pakistan, and Venezuela have much lower prices of petrol and hence are impacted less than India.
“Therefore there is still a strong case for the government to consider lowering the taxes on fuel to protect the interest of the people,” the report argued.
India is the world’s third-biggest oil consuming and importing nation. It imports 85 per cent of its oil needs and so prices retail fuel at import parity rates.
With the global surge in energy prices, the cost of producing petrol, diesel and other petroleum products also went up for oil companies in India.
They raised petrol and diesel prices by Rs 10 a litre in just over a fortnight beginning March 22 but hit a pause button soon after as the move faced criticism and the opposition parties asked the government to cut taxes instead.
India imports most of its oil from a group of countries called the ‘OPEC +’ (i.e, Iran, Iraq, Saudi Arabia, Venezuela, Kuwait, United Arab Emirates, Russia, etc), which produces 40% of the world’s crude oil.
As they have the power to dictate fuel supply and prices, their decision of limiting the global supply reduces supply in India, thus raising prices
The government charges about 167% tax (excise) on petrol and 129% on diesel as compared to US (20%), UK (62%), Italy and Germany (65%).
The abominable excise duty is 2/3rd of the cost, and the base price, dealer commission and freight form the rest.
Here is an approximate break-up (in Rs):
a)Base Price | 39 |
b)Freight | 0.34 |
c) Price Charged to Dealers = (a+b) | 39.34 |
d) Excise Duty | 40.17 |
e) Dealer Commission | 4.68 |
f) VAT | 25.35 |
g) Retail Selling Price | 109.54 |
Looked closely, much of the cost of petrol and diesel is due to higher tax rate by govt, specifically excise duty.
So the question is why government is not reducing the prices ?
India, being a developing country, it does require gigantic amount of funding for its infrastructure projects as well as welfare schemes.
However, we as a society is yet to be tax-compliant. Many people evade the direct tax and that’s the reason why govt’s hands are tied. Govt. needs the money to fund various programs and at the same time it is not generating enough revenue from direct taxes.
That’s the reason why, govt is bumping up its revenue through higher indirect taxes such as GST or excise duty as in the case of petrol and diesel.
Direct taxes are progressive as it taxes according to an individuals’ income however indirect tax such as excise duty or GST are regressive in the sense that the poorest of the poor and richest of the rich have to pay the same amount.
Does not matter, if you are an auto-driver or owner of a Mercedes, end of the day both pay the same price for petrol/diesel-that’s why it is regressive in nature.
But unlike direct tax where tax evasion is rampant, indirect tax can not be evaded due to their very nature and as long as huge no of Indians keep evading direct taxes, indirect tax such as excise duty will be difficult for the govt to reduce, because it may reduce the revenue and hamper may programs of the govt.