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Enter the campus at Infosys Technologies Ltd., Bangalore, and you would find lots of youngsters moving around with gadgets like Apple I-Pods, High-Tech Mobile Phones and Latest Electronic Gadgets. This reflects the face of the new India.
Just a few years back, the same companies were having a hard time trying to make a mark in the global industry. The same reflects from the fact that Infosys was able to achieve $ 1 Billion in around 20 years whereas the next $ 1 Billion have come in around 1.5 years.
India: Down the History Line
India has been able to showcase a total turnaround in not just economic growth but in most factors of growth like literacy level, poverty level, industrialization and others. One of the major bottlenecks in India's growth - population - is today one of the most important reasons in India's Success Story. Starting around 1980, the Indian economy became a veritable dynamo, posting an average growth of nearly 6 percent per year over the last twenty-five years. As Raghuram Rajan puts it, the only reason we have been able to achieve this phenomenal growth is "Constrained Adaption". "Constrained" because of the numerous policies and regulations inflicted on us by an untrusting government, and "adaptation" because Indians are by nature entrepreneurial. Till 1980, there were lots of unintended policies produced and implemented. Few of them are listed below: -
In order to protect the domestic enterprise, barriers were erected against foreign competition, thereby giving a respite to our own industries. But the nurturing environment proved so comfortable that our infants adapted never to grow. Ambassador acts as a brand ambassador for this category which remained unchanged for 50 years and even made our thinking that "Its only change which is constant" a tap.
These constrained policies were founded with a motive to use the scarce capital resources in the most effective ways possible, and hence, sectors like electrical and petroleum were commandeered by public sector. Sectors in which private entrepreneurs were allowed in, were heavily constrained by regulations, and hence, the outcome was that the scarce resources were inefficiently used.
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* Contributed by: -
Manik Kinra,
Batch 2006-07,
Great Lakes Institute of Management, Chennai.
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