Three examples will indicate that India Inc. does have much to fear, particularly in terms of this government adopting a mai baap stance and imposing unwarranted and oppressive restrictions on entrepreneurs, companies and middle class Indians in the name of helping the aam aadmi. In no particular order of the intensity of their anti-business sentiments, the three retrograde steps are:
Most political pundits have concluded that the most important factor behind the electoral reverses faced by the Congress is rising inflation. So how does the government tackle inflation? The Reserve Bank of India (though nominally independent of the Union Government and the Finance Ministry) resorts to yet another baffling and inexplicable hike in interest rates. Even college students of Economics would know that these rate hikes would not do much to tame inflation because it is prices of food products and other primary articles that are causing inflation to rise. Raising interest rates to suck liquidity away from the system will not lead to an increase in supply of food products. These persistent rate hikes have come as a body blow to the Indian middle class, which now has to cough up that much more for loans to buy automobiles and houses. In fact, so steep is the increase in Equated Monthly Installments on home loans that most banks are now preparing to confront hundreds of thousands of defaults. It is the middle-class Indian that is getting hurt by this.
This is procurement season and a time when millions of Indian farmers get paid for their sweat and toil as their harvest is sold. In recent years, many private companies ranging from ITC to Reliance have joined the fray and now compete with the government-owned and controlled Food Corporation of India to buy food
grains from farmers. Farmers have benefitted immensely from this. And, with a revolution in organised retail on the cards, everyone knows that corporate procurement will lead to farmers getting better prices not just for food grains, but also for fruits and vegetables. Yet, invisible mandarins in the corridors of power issue a diktat that virtually threatens private sector companies with punitive action if they procure food grains from farmers. This is strange behaviour for a government publicly committed to improving the lot of farmers. That’s because private companies are offering more than Rs.1,000 per quintal of wheat, while the FCI is offering just Rs.850. This is not only a blatantly anti-farmer move, it also sends a powerful message to the private sector that the mai baap sarkar can change the rules of the game anytime it whimsically wants to.
In 2005, the government tabled a bill in the Parliament that would allow the formation of Special Economic Zones across India. Hundreds of businessmen, entrepreneurs and investors flocked to invest in SEZs. So eager was the government to hand out cheap land to big business that it completely ignored the interests of land owners – mostly farmers. And once Nandigram happened, there was a virtual clampdown on the SEZ. The sensible step would have been to do what Business & Economy has been advocating for a while – let the market decide the land rates and let farmers own equity in the SEZs. Instead of this, the government has changed the rules to make bureaucratic interference more easy and pervasive.
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Source:- IIPM Editorial, 2006
An IIPM and Management Guru Prof.Arindam Chaudhuri's Initiative
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SGH T500 mobile that was produced primarily for women who were style savvy, Samsung has concentrated on product enhancements while innovating with each offering. Like myriad brands boasting of a brand ambassador, Samsung first tried its hands at cricketer Virendra Sehwag for promoting its N380 handsets; and later hooked on John Abraham.
SGH T500 mobile that was produced primarily for women who were style savvy, Samsung has concentrated on product enhancements while innovating with each offering. Like myriad brands boasting of a brand ambassador, Samsung first tried its hands at cricketer Virendra Sehwag for promoting its N380 handsets; and later hooked on John Abraham.
