India Inc. Debuts on International Arena
Several indian companies in recent times have been acquiring companies around the world. This is a trend with far-reaching implications for the future of the country and the industry.
Some examples (Company : Acquires : For):
- Tata Steel : Corus : 8 billion.
- Ranbaxy : Romania's Terapia : $372 million.
- Tata Motors : Daewoo's Commercial Vehicle Co. : Rs 465 Crores
- Hindalco : Australian Copper Co. : A$21 million
- Telecom Software firm Subex’s : Azure Solutions
- Tata Coffee’s : US based Eight O’Clock
- Dr Reddy’s : Betapharm
- Nicholas Piramal India Ltd (NPIL) : UK’s Rhodia Organique Fine (Rhodia) : $ 14 million
This is just a random list.. ofcourse there are many more...
These movers and shakers are from a country which ranks as one of the lowest in the world in terms of business friendliness i.e ease of starting, running and closing a business (closing: average time 10 years).
Imagine if red-tape is cut, and the ubiquitious babu - actually starts working towards helping indian industries - thereby creating a very large number of jobs; much more than any gimmicky slogan based yojana. Public Sector needs to take note; promotions and employability needs to be linked to performance and not to other things. This might be our chance to deal with poverty in a way that Nehru's public sector giants (the new temples of india as he had said) could not do. China is doing this and more with its manufacturing sector (though its largely govt. 'enabled').
For the first time perhaps in several centuries, indian travellers abroad are seen not-only-from-the land of snake charmers, but from the land of an emerging economy they are taking note of.
Still there are several things that need to be watched out for continued success (stability, competition, good law and order, policies etc.). Many East Asian economies were once poised for a similar growth about a decade ago, few succeeded most did not.