Free Essay

India on the Move

In: Business and Management

Submitted By rodriguezlav
Words 828
Pages 4
India on the move
By Jazib Zahir
MBA students often study a case titled "India on the Move" published by Harvard Business School. The case touches upon recent attempts by the Indian government to liberalise the country's economy and this is cited as a key factor behind India's prodigious growth rate over the last two decades. The case conveys a sense of excitement around the business opportunities present in this vast land through facts, figures and analysis.
But you can't understand a country by reading about it anymore than you can understand business just by reviewing a textbook. Fortunately, I had a chance to visit some of the major cities in India for a few days and form some superficial impressions of the business environment there.
The first thing I noticed when I disembarked in Delhi was the wealth of foreigners in the land. Indeed, as I exited the airport, the number of Caucasians and East Asians on site was comparable to the number of natives. Wherever I went, it was common to see foreigners assimilated into the work environment. Many had brought over their spouses and children to live in the country, even if their stay was meant to be temporary only.
In fact diversity, even in subtle ways, was the hallmark of my time spent at an office in Delhi. It was common for all the team members, including the management, to sit around one table at lunch time. The team included people from different religious backgrounds and a range of dietary restrictions was in place. However, people could casually joke about these differences without offending anyone in a manner that I have not yet experienced in my own country.
My sense is that the regulatory environment in India is more stringent than that of Pakistan. Taxation and capital controls are taken more seriously at the corporate level as finance departments endeavour to keep their reporting accurate and up to date. The policy of Maximum Retail Price for goods helps keep prices stable. Under a national employment programme, rural citizens are guaranteed 100 days of employment by the state and this is enforced through a number of local bodies.
Symbols of the growing wealth of the population are ubiquitous. I saw dozens of billboards heralding the arrival of the iPhone 4. Luxury brands have found eager customers in Indian cities. Hermes has not only set up a shop in India, it has localised its goods by launching a line of saris. 
At the other end of the spectrum, I was most impressed by the commitment to lifting millions out of poverty through the use of innovative technologies and financial services. Consider the company FINO. It boasts proprietary electronic technology that facilitates rural households in accessing banking services and transferring payments. The showrooms for the Tata Nano automobile epitomise the efforts to bridge the poverty divide. Major players in off-grid energy solutions like dlight have formidable presence in the country. Regional entrepreneurs are highly respected and play a key role in providing access to basic services and utilities to the vast rural populations. 
That is not to say that the Indian business environment is devoid of problems. Local businessmen readily admit that the eastern portion of the country lacks the political stability and economic growth that characterises the rest. The number of political divisions in the country has reached 28 and is expected to rise further. Corruption, too, is an accepted way of life. Urban sprawl and traffic are much more atrocious than what you find in Pakistan.
Nevertheless, India seems to have moved beyond politics, which is a less dominant conversation topic than it is in Pakistan. The most productive minds are able to enjoy fairly steady access to basic infrastructure and utilities like electricity and gas, and are focused on the economic opportunities in front of them. Many people working in Delhi commute for several hours a day from nearby cities to reach their offices. Many of these same people study on the weekends to enhance their credentials. There is a general acceptance that competition has grown tremendously and you must go the extra mile for the sake of your career. 
There is a palpable sense of ambition bubbling through the workforce. Employees at traditional multinational brands grouse about bureaucracy and dabble in thoughts of risky, but rewarding independent ventures. One senior executive at a major oil company told me that he was ready to resign and join his son to investigate renewable energy opportunities for base of the pyramid populations. Young people were looking beyond the stability of traditional careers to follow their passion in academia or entertainment. 
Ultimately, India is on the move because of its energetic and committed workforce. If we too can learn to look beyond our problems and approach business with the same zeal, there is no reason we can’t emulate India’s success.
The writer is an Adjunct 
Professor at LUMS and 
a technology etrepreneur.

Similar Documents

Premium Essay

India on the Move

...India suffered a financial collapse in 1992, but had been growing at almost 6% annually by 2002 making it one of the fastest growing economies of the world. India removed almost all its import and capacity licensing restrictions and adopted the Washington Consensus. Financial controls were enforced by the International Monetary Fund (IMF), thus making major economic reforms in India that would grant them loans in order to move it along toward a more market-oriented economy. The focus of these reforms was to reduce the governments’ bureaucracy and stabilize the country’s macroeconomic balance. Competition barriers became less burdensome, inflation was lowered, and the current account was balanced. Even though these issues illustrate a road to improvement, huge fiscal deficits still existed and interruptions and corruption in Pakistan continued. Foreign investment became slow to enter India due to the continued restrictions on foreign ownership, the slow progress of privatization, and India’s substandard infrastructure. To achieve growth in India, significant reforms needed to be passed. Success in India’s growth performance plan for economic and social growth into reality would be the country’s’ biggest obstacle. 1. Why did India experience relatively slow economic growth from independence until 1991? India’s population had reached 1.05 billion by 2002 and was growing at 1.5%, more than the country could support at the time. Domestic issues existed between......

Words: 2343 - Pages: 10

Premium Essay

India in the Move

...Case study: India in the move Introduction With more than 1,5 billion citizens, India represent a huge market for national and international companies. However India is still facing some difficulties that are slowing it expansion and its economic growth. Trying to solve them is the main objective of the minister of finance Jaswant Singh that has to craft a budget to achieve the 10th five years plan, which constitutes an economic, and social growth project for 2002-2007. Among its main objectives is achieving, a growth rate of 8% (Exhibit 2), removing interstate barriers to trade and commerce, implementing a more efficient fiscal management, creating jobs, reducing poverty, illiteracy and solving the social, politic and religious conflicts within the country. What were the reforms that led to this new plan? Is this developing India attractive for foreign direct investment? To answer to this question, we will start by analyzing India’s Background and we will finish by studying its process towards globalization I. India’s Background India’s population in 2002 knew a continuous growth of 1,5% and is estimated to keep and on growing. Live expectancy had reached 62 in 2002 and the literacy rate was 65% in 2001. Having a very diversified population, the country has 18 official languages, Hindu being the most prevalent. Many religion try to cohabite, not always successfully, inside the territory. Hindu-Muslim frictions represent a major problem for the country;......

Words: 1145 - Pages: 5

Premium Essay

Problem Solution: Global Communications

...Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS Problem Solution: Global Communications MMPBL/500 Queenetta J. Parris June 6, 2011 Maria Marin Problem Solution: Global Communications According to Miciak and Desmariais (2001), service quality is a major concern of all organizations and call centers play an important role in both consumer and business markets. Global Communications faced several challenges after deciding to move their technical call centers to India and Ireland. The communication channel between the Executive Team and the Workers Union is at an all-time low. Global Communications issues to increase profitability, dealings with layoffs, and reestablishing communications between the Workers Union are the challenges they must resolve. Considering important past events that led to the issues and opportunities identified for Global Communications, in this paper the subjects to examine is the perspective of stakeholders involved, a proposed problem solution, and an analysis of alternative solutions. Identification of risk, probabilities, severity, and mitigation techniques for each alternative solution, which identifies risks connected to a best practice used by other companies for benchmarking purposes. Finally, the optimal solution is examines how the recommended solution can help Global Communications achieve its end-state goals and vision. Situation Analysis Issue and Opportunity Identification Global Communications......

Words: 3529 - Pages: 15

Premium Essay

Business Ethics

...From the critical thinking section, I could use the principle of precision. Precision requires that I evaluate the problems more exactly. Based on more details and more specific information, I may know if the company move to India, how much more benefit it will earn ( The cost of operating will be decreased up to 1/3)compared with the lost (The money, the time... train new people in the position) so that I can make my recommendations better. From the business ethics section, I could use the principle of utilitarianism. It helps in costs and benefit anlysis. It considers between increase happiness of employer and decrease unhapiness of employees. The company will save money and make more benefit if the jobs are moved to India. However, it costs to emplyees in the U.S. They lost their jobs which impact to their lives, their family, their kids, and even though to the U.S’s economy. Therefore, using this principle helps my dicision more ethics to people. From the team building section, I would maintain constructive relationship with my work mates. Team building has ability to work effectively. As part of the team, I will use repeatedly in my career. When I work with my co-workers from other departments: Accounting, Human resources, Production and Marketing, we will learn more cohesion, coordination, and communication to build a suscessful team. Members communicate frequently and openly more often with one other so that the issues will get more wide and......

Words: 607 - Pages: 3

Free Essay

Assess the Relative Roles of Sub-Tropical Anticyclones and the Inter-Tropical Convergence Zone in Creating the Characteristic Features of the Climate of One Tropical Region That You Have Studied (40 Marks)

...The monsoon climate of India is effected by sub-tropical anticyclones and the inter-tropical convergence zone. In the ITCZ, trade winds meet and create a low pressure zone of rising air that cools and condenses forming frequent heavy rainstorms. The monsoon climate is split into wet and dry monsoons. The wet monsoon lasts 4 months from around June until September and the dry monsoon lasts for the rest of the year from October to May. The wet monsoon has extremely heavy rainfall and warm temperatures for very long periods of time and the dry monsoon is the opposite for the rest of the year and the land cools down. In summer in the wet season there can be up to 600mm of rain in a month whereas in the dry season in winter there is very little rain. On average there is around 3000mm a year, most of this rain falls in the wet season. This climate is due to many effects, most of them caused by subtropical and anticyclone and the movement of the ITCZ. Anticyclones are weather systems have high pressure, falling air, clear skys and warm temperatures. The air falls from the upper atmosphere and warms on the way down. This causes humidity to decrease as air masses hold more moisture as they get warmer. This also means that clouds don’t develop and conditions are very dry because air began over a land mass and has relatively low humidity and so not much moisture condenses. The inter-tropical convergence zone is the area of the atmosphere that lies over the equator. It receives......

Words: 838 - Pages: 4

Premium Essay

Single Global Currency

...going through a turbulent phase. Basu took some time off to speak to Mint, just ahead of a key G20 meeting in Seoul, to provide an overview of how India perceives global economic trends. Articulating his thoughts on the latest round of monetary quantitative easing, he proposed a radically different long-term fix for the global economy, held out hope that the persistent domestic inflation would ease and painted a positive economic outlook ahead of next year’s Budget. Edited excerpts: What do you think is the outlook for the global economy? The outlook is best described as mixed; it changes from week-to-week, month-to-month. European unemployment has deteriorated slightly, while US unemployment has held steady at a high of 9.6% for three months. So the expectations on the global front continue to be uncertain. The somewhat risky move that the US has made with the second round of quantitative easing—something that is akin to printing money—is a gamble. It is not all negative, as some make it out to be. But it is a risky move, given the changed structure of the world economy. The relatively benign interpretation of what is happening in the world is that this is a temporary earthquake caused by the tectonic shift of economic power that is occurring beneath the surface of the world economy, marking the rise of emerging economies like India, China and Brazil. If this is indeed the case, the economic turbulence will subside and we will stabilize with an altered geography—a new......

Words: 2315 - Pages: 10

Free Essay

Rural-Urban Migration in India

...Indian rural-urban migrants of India has increased steadily. Firstly, a job deficiency is so serious that rural Indians move to cities in search of better careers. In addition, that health care system is substandard is one of contributing factors of rural-urban migration in India. Finally, rural education system cannot meet many citizens’ demands, so they have to migrate to urban areas with a view to further education. It is recommended that the Indian government should support family planning and non-farm employment, liaise with philanthropic organizations and found their own charitable organization. Introduction According to International Journal of Humanities and Social Sciences (2014), approximately 2 million people migrate from rural to urban areas worldwide every year and the total number of rural-urban migrants has been around 22 million people since 2001. Also, it is the most fundamental issue that makes a significant change in one country’s demographic structure. Rural-urban migration is such a chronic issue because it leads to a series of effects where this effect results in another effect, which has put negative pressures on community development. What is more is that the proportion of rural-urban migrants in developing and poor countries has witnessed a more remarkable growth than that in developed countries. India is one of the countries which have the highest rate of rural-urban migration. The statistics of rural-urban migrants in India showed upward trend......

Words: 1862 - Pages: 8

Premium Essay

Kashmir Issue at Un

...Nations Machinery Country: Germany Delegate: Ruchi Gupta Since the partition of British India into India and Pakistan in 1947, the Kashmir conflict between them has become intractable. India first referred the case of Pakistani aggression in Kashmir to the United Nations Security Council under Article 35 of the UN Charter on January 1, 1948. This move was directed towards protecting India’s territorial integrity. United Nations was involved in mediating the Kashmir conflict from 1948 through 1965. Later, at the end of the Third Pakistan- India war of 1971, Pakistan and India signed the Simla Agreement in 1972 which emphasized the adoption of a bilateral framework to solve the crisis. UNSC resolution 47 of 1948 recommended Pakistan to withdraw all its tribesmen and Pakistani nationals. It also recommended Indian forces to be reduced to minimum strengths to maintain law and order so as to later hold a UN supervised plebiscite in the princely state of Jammu and Kashmir to determine the aspirations of her people. But Pakistan never vacated and later India also backed out. As a result the referendum never went through and UN declaration could not be implemented. Germany agrees that the Kashmir issue should be undertaken bilaterally as “one spark” could be disastrous for the entire region. Germany has always supported negotiated settlement of the Kashmir issue between Pakistan and India. We also believe that the two countries could follow the principle of dialogue and people......

Words: 651 - Pages: 3

Premium Essay

Indian Bpos- Waking Up the Philippines Opportunity Case Analysis

... Problems A. Macro- The major macro problems are surrounding the loss of the tax abatement in India as well as the weakening US dollar. Both of these issues make it incredibly expensive to do business in India compared to other locations like the Philippines. B. Micro- In India the transportation and infrastructure costs continue to hurt the bottom line. II. Causes- Tax abatement ended in 2009, transportation and infrastructure costs are not going away and other countries have more attractive incentives to bring in higher margins. III. Systems affected- The whole upswing in bringing BPOs into India has been affected, it is no longer that attractive to bring your business into India when you can make much more money in the Phillipines with the same customer satisfaction. IV. Alternatives- If India wants to keep BPO’s around, they need to start flirting with the idea of re-instating the tax abatement as well as having the government pick up the transportation costs. V. Recommendations- If I am the decision maker in the Indian government, I do not want the BPO’s to pick up and move all their money to another country. So, I am implementing a lower tax bracket for these companies to remain in India, I am picking up the costs of transportation as incentives to stay in India. It always comes down to money and profitability for businesses, so I would keep India competitive to keep the Citibank’s and Intel’s here. Questions 1) How has the global economic...

Words: 777 - Pages: 4

Premium Essay

Make in India

...Make in India: Reverie or Reality Abstract: Make in India is the BJP-led NDA government's flagship campaign intended to boost the domestic manufacturing industry and attract foreign investors to invest into the Indian economy. The intention is to revive manufacturing businesses and emphasizing key sectors in India and to address the growing concerns that most entrepreneurs are moving out of the country due to its low rank in ease of doing business ratings. Current scenario: The “Make in India” initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, not only in manufacturing but also other sectors. The four pillars are:  * ‘Make in India’ recognizes ‘ease of doing business’ as the single most important factor to promote entrepreneurship.  * Government intends to develop industrial corridors and smart cities, create world class infrastructure with state-of-the-art technology and high-speed communication. * FDI has been opened up for new sectors like Defense production, Insurance, Medical Devices, and Construction and Railway infrastructure in a big way. * In order to partner with industry in economic development of the country Government shall act as a facilitator and not a regulator. Manufacturing currently contributes just over 15% to the national GDP. The aim of this campaign is to grow this to a 25% contribution as seen with other developing nations of Asia. In the process, the government......

Words: 970 - Pages: 4

Free Essay

Managing Organisation Strategies

...MANAGING ORGANIZATIONAL STRATEGY Level 6 44-6884-00N 2013-2014 Yorkshire Tea’s strategic choices Module Leader UK: Lilia Zerguit Module Leader Singapore: Jassni Hambali Student Name: Pham Tuan Anh Student ID: 23044827 Words count: 4712 (excluded cover page, table of contents, figure, in-text citation and references) Table of Contents 1. Executive summary 3 2. Introduction 4 3. Critically analyze the major strategic options that Yorkshire tea might be adopted 5 3.1. Yorkshire Tea current strategy overview 5 3.2. Innovation option combine with organic development method and low-price strategy 6 3.3. Internationalization option combine with organic development method 8 3.4. Market development direction combine with strategic alliance method and low-price strategy 9 4. Yorkshire Tea’s internal, external and competitive environment analysis 10 5. Strategic options evaluating 15 5.1. Innovation strategy combine with organic growth method and low-price strategy 15 5.2. Internationalization strategy combine with organic development method 17 5.3. Market development direction combine with strategic alliance method and low-price strategy 19 6. Strategic options recommendation 21 7. Conclusion 23 8. References 23 1. Executive summary Throughout this report is all about the strategic directions, options and methods in order to generate the most possible strategy for Yorkshire Tea Taylors of Harrogate, which is a traditional family......

Words: 5354 - Pages: 22

Premium Essay


...Monitor 3. Entry into India is a logical move for Monitor. The country’s low wages, growing economy, and highly educated, English speaking workforce are just some of the reasons that illustrate why this is a good business decision. a. Monitor forming a company-owned research division in India makes sense for a number reasons. First, they would have would have the ability to produce their own syndicated research. Syndicated research has high margins and because the research they are syndicating would be presumably something they need anyway, they would offset their cost (they are essentially buying and producing this research at cost). This cost advantage is further exemplified in the article “Why Do Firms Exist” where we observe that a firm is “essentially a device for creating long term contracts and in this sense we understand that transaction costs are lower within a firm than across.” Another advantage is that they would have complete control over the outcome and culture for the company. They would be setting the quality standards, hiring the people, and establishing the culture. It’s important for a company to have control over their output if as they grow, especially given the dynamic nature of this segment. Finally, having their own research division would help them understand the local environment better. This knowledge could be a competitive advantage against the other firms that outsource this research. The disadvantages of this move primarily lie in the......

Words: 589 - Pages: 3

Premium Essay

Emerging Economies and Globalization

...Emerging Economies and Globalization Argosy University Module 5: Assignment 1 LASA 2 BUS6512 Jerome Bates June 4, 2015 Table of Contents Abstract……..………………………………………………………………………………p.3 General Electric Health (History)..…………………………………………………………p.4 Theories Behind the GE Healthcare Move…………………………………………………p.4 International Product Lifecycle.…………………………………………………………....p.5 Comparative Advantage……………………………………………………………………p.6 Possible Pitfall of the Strategy……………………………………………………………..p.8 Solutions to Pitfalls…………………………………………………………………………p.9 HR Strategy in India………………………………………………………………………..p.9 HR Strategy in China……………………………………………………………………….p.10 Training Design (India,China)………………………………………………………………p.10 Conclusion…………………………………………………………………………………..p.11 References………………………………………………………………..…………………p.12 Abstract Untapped markets are not always available, but are out there; the question is, how do you find those markets? How do you tap the untapped? How do you find untapped markets with the proliferation of growth in economies, societies and markets within a world that is becoming a market without defined borders? As companies continue to grow and trade also expands, it now is crucial that MNC’s looking to expand their business, look for growth in a global lens sense. In this essay, the discussion will be just that. How MNC’s can reach untapped markets and expand the growth of their business, most notably, General Electric Health. This has been made possible due to the......

Words: 2926 - Pages: 12

Free Essay

Emergency Provisions

...Introduction- Fundamental rights are enshrined in the part III of the Indian constitution. They are part of those rights which are necessary for the survival of a human being with dignity. Fundamental rights have been incorporated in the ‘fundamental law of the land’, i.e. the constitution of India and one can approach courts in case of violation of these rights. These rights reflect a desire of the founding fathers of Indian constitution to build a new social order. For example, there are rights declaring practice of untouchability an offence or conferring certain culture and educational rights on the minorities, both linguistic as well as religious. Moreover, the given rights are not absolute but subject to certain reasonable restrictions. For example, the right to freedom of speech and expression can be restricted on grounds of public order, morality or decency and national security. The fundamental rights can be suspended during national emergency (act 352), only exception being right to life. Having discussed the basic features of these fundamental rights, one can find that these rights have classified under six heads in a logical manner depending upon their scope and nature. * Right to equality (art 14-18) * Right to freedom (arts 19-22) * Right against exploitation (art 23-24) * Right to freedom of religion (art 25-28) * Cultural and educational rights (art 29-30) * Right to constitutional remedies (art 32) In 1978, right to property......

Words: 9554 - Pages: 39

Premium Essay

Car on Lease

...are providing car on lease. In the era of “Use and Throw”, a luxury car on lease may prove to be a good move. If you appreciate good things, enjoy luxury life, change cell phones after every 6 months then you will most likely be driving the latest model of Mercedes after reading this. To make car ownership economical and hassle free, Mercedes-Benz introduced car on lease in India in Oct, 2011. The concept has already gained popularity in US and Europe and now it is in India. In my opinion car on lease is a profitable step for any car manufacturer because it covers all aspects of business, as shown in below figure: [pic] A strategic move India is home to 150,000 millionaires where young businessmen and executives are stepping in; out of those only 22,000 bought luxury cars in 20111. It indicates there is a huge scope to target the population who aspires to have an expensive car. An operational move For securing a car loan, you would probably end with lots of meetings with the bank and loan officers and a pile of documentation, but for a car lease you need to contact only to the car dealer and understand the contract. It is more or less testing a car. After the end of lease, if you like it, takes it home and if not, you need to drive it back to the dealer without taking headache of searching of buyers. More so, it will make your life easier. A financial move If you are in love with a luxury car and that is too costly for your financial status, car lease......

Words: 768 - Pages: 4