More importantly, they have used capital far more productively and efficiently than Chinese counterparts.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

INDIA INC: Back in the 1990s, virtually every analyst worth her salt had written off India Inc. Used to protectionism for decades, Indian companies were bludgeoned and battered when global competition came to the country. But alongside rose the animal spirits of entrepreneurship that has led to the astounding recovery of India Inc. by the early 21st century. Mostly without government support, a new breed of entrepreneurs have sensed opportunities in new sectors and grabbed them brilliantly with both hands. Many western scholars now acknowledge that India holds the advantage compared to China because of two reasons. Most successful Indian companies are private. More importantly, they have used capital far more productively and efficiently than Chinese counterparts. In these turbulent times, firms that have acquired a nasty habit of depending on crony capitalism will suffer – just as powerful business families suffered badly in the 1990s. But the smarter ones will emerge bigger, stronger and more profitable. Also remember, most Indian companies are sitting on billions of dollars of reserves!


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Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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