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“INDIA SHINES!!!” does this phrase looks familiar? It was the famous political slogan of Bharatiya Janata Party (BJP) for 2004 general election. Unfortunately, BJP did not win that election but their slogan is gradually becoming a reality. Today, India can boast of its economic growth. India, which till now, known for its IT professionals and software industries, is going to be a major economic player in the global market in near future. According to famous Indian management professor and one of the top ten management thinkers of the world, C.K. Prahlad, India now has the capacity to grow 12%-13% per year. However, this growth figure is depending on the decisions of the policy makers. I am quoting from the report published in monstersandcritics:

India has the capacity to grow at 12-13 percent and its policymakers should strive to attain that productivity level, according to renowned management professor C.K. Prahalad.

'There is no doubt we have a long way to go. But the good news is the direction and the momentum are right,' Prahalad, considered among top 10 management thinkers in the world, told IANS in an interview here.

'If we do not mess with the momentum, the industry and consumers will certainly propel India as a high growth country,' said the professor he professor who teaches corporate strategy at the Stephen Ross School of Business at the University of Michigan.

Six years ago, this Chennai born professor stirred the management intellectuals of India with his announcement that India would have an annual growth of 10%. Many management specialists could not accept his view.

Many would still consider the growth figures given by Prahlad is skeptical but Indians so far have proven that when it comes to business, Indian’s are no less than western businessmen and entrepreneurs. In 1991, India opened up its market for the foreign companies. Within fifteen years, Indian companies have proven their abilities. In 2006, Indian companies collected $19billion through foreign acquisitions and domestic expansion which is higher compared to the foreign direct investment. Visionary businessmen like Laxmi Mittal and others played a great role in changing India’s image. The biggest take over of 2006 was Corus, Britain’s largest steel company, by Tata Steel. The take over has not been finalized yet. Being a company three times bigger than Tata, it seemed to be an impossible feat but it has been made possible by the company’s positive image among its investors that provided it $8 billion. Even the Corus management team thinks that Tata would work better than British owners.

Other major take over includes: Energy Brands, a US energy drinks manufacturer by Tata Tea; Betapharm by Dr. Reddy’s Labs; Eve Holdings by Suzlon.

Cricket is the most favorite sports in India. There is a saying “Cricket is a game of GLORIOUS UNCERTAINTIES” it means anything can happen in cricket. I think Indian economy has this same characteristic. It always moved forward in unconventional ways. Normally, a country first becomes self sufficient in manufacturing and then goes for service industries. India became very successful in service oriented industries instead of manufacturing. After gaining experience in the domestic market, domestic companies go out for foreign expansion but Indian business firms broke that convention. It looks like India would become the next unconventional economic GIANT!!!

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Monstersandcritics

Times of India