INDIA INC – A NEW GIANT
Year 2008-09, all the strong economies of the world are on the verge of recession. Companies tryin hard to control sustain its operations, govt of their respective countries trying hard to block the fund erosion but with very limited effect. People go to their office just to find out that they have been given a pink slip, reason, the very old cost cutting policies of the company in this credit crunch situation.
Situation is not different in india, india inc is expected to cut off 25 % jobs in various fields like IT,brokerage services, bpo, airlines and construction. Amidst all these dark clouds we see a silver lining. India inc. can exploit this situation to its best interest with little optimism. Despite of the crisis situation many Indian co. like the sbi bank, the mahindras have shown excellent net qtr results which suggests that India inc is to a large extent insulated from the global crisis. The worst is miles apart from India, and the credit should go to the Indian industry which in last 2 decades has grown faster than a weed.
Though India felt the tremors of the global turmoil, some sectors in India are independent enough to resist these turmoil. Sectors like IT, SERVICES AIRLINES, HOTELS have been hit right where it hurts. This is the consequence of over dependency of this sectors on economies like us and uk. With every little policy change in these countries, affects the operations of industries of these sectors in India which in turn affects every single employee like you and me. These are the sectors which have grown in the last decade which are very much responsible for the 8% gdp growth of India. However now they face the challenge to contribute to sustain 7% gdp.
On the contrary we have sectors like fmcg and pharma which are emerging as the saviors of Indian economy. Industries in fmcg like the HUL & ITC which do not depend on foreign currency are unlikely to have an impact. These industries are self reliant and should see this crisis as an opportunity to take Indian economy to its peak level. These industries give india an optimistic approach to deal with this crisis and is also one of the main reasons why india is not amongst those worst affected.
Credit should also be given to this nda govt. and not to forget the finance minister, P. CHIDAMBARAM the governor of RBI, mr Y.V. Reddy.With all their expertise and experience they took some dauntless decisions to curb the excessive influx of foreign funds in the Indian market, the decision to raise the crr ratio and the interest rates when inflation was hovering around 12 %, a move which was initially picked apart. However this proved to be prophylaxis for the economic danger that lied ahead. Had it not been for their foresight and ingenius thinking, India would have been in the league of the worst affected nations of this economic crisis.
All said and done, how should we, the students graduating from various b-schools in India should look at this? Sure there will be fewer companies coming to the campus for the next two years. In such scenario MNCs and international placements will be like a mission to mars, a distant dream indeed. However we cannot ignore the fact that this gives companies in India to get the best brains from Indian b-schools. This would in turn lead to a reversal brain drain. The best brains which flew out of the nation to earn in dollars and pounds now working in our own land, leading to growth of India inc. Eventually India will get what it deserves, the services of one of the world’s most intelligent work force, i.e. we the Indian students. Lets give a thought to this, Indian companies sure have a great opportunity to retain some of the best students from IITs & IIMs and when that materializes no one can stop this nation from becoming a new giant.
