The World without Bankruptcy Laws
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat Whistleblowers
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen Monks
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic Strategies
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional Franchises
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
The recent report by the World Bank about doing business in India places the country at 130 among the nearly 180 countries surveyed. India has risen by four places as compared to 2015 and other parameters in the index have improved.
The change of government in 2014 which ushered in a pro business and pro-reform dispensation headed by Prime Minister Narendra Modi is cited for the noticeable increase in developmental indices such as the GDP (Gross Domestic Product) growth rate, FDI (Foreign Direct Investment) inflows, and an overall increase in competitiveness.
For instance, the GDP growth for the last two years has been above 7% (though there are some doubts about the methodology followed), inflation has been tamed and cooler at around 5%, the FDI for the last year has been at $63 Billion surpassing even China that has been a global benchmark for the last decade or so in terms of attracting foreign capital. All these measures seem to indicate that India is indeed a “rising star” and is being seen as the “fastest growing major economy” in the world.
Having said that, it must also be noted that while the market sentiment and the investment climate has improved, much needs to be done on the ground for India to be able to fulfil its potential as a “Caged Elephant” that can overtake the “Asian Tigers”.
For instance, the ease of land acquisition is still yet to be reformed, and successive governments including the present one have tried without success to pass legislation that is business friendly and inclusive at the same time. In a similar vein, the ambitious GST or the Goods and Services Tax Bill which envisages a unified market under one tax rate is stuck in Parliament despite the Modi government expending significant political capital on its passage.
In addition, if the ease of doing business in India has to succeed, there needs to be reform of the labour laws as well as noticeable improvement in the physical and virtual infrastructure.
Further, the success of any attempt to make the Indian economy investor and business friendly would also have to take into account the slow moving Judiciary, the rampant corruption that has corroded all the institutions and has been a bottleneck for economic growth which can only happen with a mindset change at all levels and in all sections of society.
Your email address will not be published. Required fields are marked *
Why are Companies Constantly Upgrading their ERP Systems?
February 7, 2025
It’s Now or Never: Why Business Must Embrace Sustainability before it is Too Late
February 7, 2025
The Pharma Sector and Intellectual Property Rights: Pros and Cons
February 7, 2025
