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CORPORATE WORLDIN INDIAN ECONOMY

An Foundation Course Project by

Vidya Khanolkar

Anand Vaidya

Bharat Javheri

Munniappan Arumugum

Sahel Kohari

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INDIAN ECONOMY OVERVIEW

Economics experts and variousstudiesconducted across the globe envisage

India and china to rule the world in the 21st century. For over a century the

United States has been the largest economy in the world but major

developments have taken place in the world economy since then, leading to the

shift of focus from US and the rich countries ofEurope to the two Asian Giants India & China.

The Indian Economy experienced a GDP growth of 9.0% during 2005-06 and

9.4% during 2006-07. by 2025 IndiasEconomy is projected to be about 60% the

size of the US economy. The Transformation into a tri-polar economy will be

complete by 2035, with the Indian economy only a little smaller than the USeconomy but larger than that of western Europe.

India, which is now the fourth largest economy in terms of purchasing power

parity, will over take Japan and become third major economic power within 10

years.

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HIGHLIGHTS OF INDIAN

ECONOMYIndian companies wishing to invest abroad were permitted to invest up to US $

50 million on an annual Basis.

Indian employees who have the benefit ofESOP schemes in foreign owned

companiescan now make investments abroad up to US $ 20,000 annually

instead if in a block of five years. A growth rate of real GDP at 6.0 to 6.5 %. Thelimit of investors in plant and machinery for considering a unit assmall scale

industry (SSI), which stood at Rs. 3 crore earlier, was brought down to Rs. 1 crore

in order to give a fillip to small units with low investments. Commercial banks

were advised to dispense with collateral requirements of the tiny sector for

loans up to Rs. 5 lakh. The growth of industrial output slowed down to 5.1 %

during 2000-01 from 6.7 % during 1999-2000. Indias external debt increased by2.1 % from US $ 98,185 million as at end-March 2000 to US $ 100,225 million as

at end-March 2001. The external debt-GDP ratio declined from 21.9 % as at end-

March 2000 to 21.4% as at end-March 2001.

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INDIAN CORPORATE AND

FINANCIAL GIANTSAZIM H. PREMJIHe is Indias richest man and the 25th richest man on the planet. He isworth an estimated $ 6.7 billion. A better introduction to Azim Premjiwould be as one of Indias most successful entrepreneurs who got

hooked to a small company three and half decade back and turned into aglobal corporation, Bangalore-based Wipro, Indias third largest softwareexporter, is now listed on the New York Stock Exchange.

A Hands-on manager that he is, Premji is famous for his frugalityat office and home. Unlike other high-flying conglomerates top men,Premji flies economy class. There are no limos awaiting Premji or Wipro

staffers when they arrive at an airport. They take taxis or trains. Premjioften takes a three-wheeled auto rickshaw from the Bangalore airportwhen returning from his travels. It is his ideal that ordinary people arecapable of doing extra ordinary things that motivates Premji and Wiprosteams and energizes them to strive harder. As such he is venerated byIndian business people for insisting that Wipro will not pay bribes.

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INDIAN CORPORATE AND

FINANCIAL GIANTSDHIRUBHAI AMBANIThink Big, Think Fast and Think Ahead was the motto of

Dhirajlal Hirachand Ambani famously called a Dhirubhai Ambani. Thetransmutation from selling hot snacks to pilgrims outside a temple in his

native village in Gujarat to leading Rs. 620 million Reliance Empirehappened in a short span of 25 years. And all this happened because hedid not stop dreaming big despite obstacles and a few initial debacles. Hedid not stop dreaming big even when he went to Aden, Yemen as a petrolPump attendant at the age of 17 to help support his family only to cometo Mumbai and start the Reliance Commercial Corporation with a

borrowed capital of just Rs. 15,000. Starting with a small textile mill atNaroda, in 1966, Dhirubhai took reliance into various areas likepetrochemicals, polyester filament yarn, oil and gas exploration andproduction, refining and marketing petroleum, textiles, power, telecomservices, information management and financial services.

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INDIAN CORPORATE AND

FINANCIAL GIANTSN R NARAYANA MURTHYChief mentor of Infosys Technologies Ltd, the bellwether of

information technology in India, He founded the company in 1981 with$250 and a few friends in a two-bedroom Pune apartment. Without any

seed money and borrowing Rs. 10,000/- from his engineer wife Sudhawho worked as an engineer with Tatas back then, Murthy began Infosys.Until 1991 when the liberalization doors flung open, Infosys struggledsomewhat. And then there was no looking back. Today the scene inInfosys is the only company listed on the United States Nasdaq.

Simplicity and humility are the trademarks of this Banglorean

who for all his wealth and fame does not know how to drive a car. It is afamous fact about him that he still lives a very simple life, Travels to andfro in office bus and lives a very principles life, and it only goes on toshow that he is made of a sterner material.

His uncanny knack of thinking years ahead has turned Infosys aglobal competitor.

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INDIAN CORPORATE AND

FINANCIAL GIANTSRATAN TATAI have never had the desire to own a yacht, to flaunt. The

statement describes simple mindedness of Ratan Tata, more preciselyRatan Naval Tata. Fresh from the victory of Corus deal, Tata chairman

Ratan Tata, non-executive director of $22 billion Tata group which hascore interests in steel, cars, telecommunication, software consulting,hotels and consumer goods is seen as arrived on the global arena.Ratan, 69, is not among the Forbes list of 40 richest Indians around theworld. Neither he is considered t6he most powerful businessman in Indiabut the leap is quite a big one and will take Tatas on the global map.

The Cornell-educated architect who succeeded his uncle JRDTata and stepped up as chairman in 1991 remains one of Asias mostinfluential businessmen. And with the Corus buyout that he has madeTata Steel worlds fifth largest steel maker, the prestige is only going to goup. As of now the Tata group includes 96 companies under its flagshipincluding worlds second largest tea business Tata Tea, Asias largest

software firm Tata Consultancy Services and of course the steel giantTata Steel.

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INDIAN CORPORATE AND

FINANCIAL GIANTSRAHUL BAJAJListed 20th on the Forbes Indias richest forty and being

awarded with Padam Bhushan in 2002 has gone into the his head. Analumnus of Harvard and St. Stephens, Rahul Bajaj, chairman of the $ 1.5

billion Bajaj Group, holds major contribution in stewarding the companyto being Indias largest and the worlds forth largest two-wheeler andthree-wheeler maker.

The recession and stock market collapse of 2001 hit thecompany hard and it was predicted that the days of Bajaj Auto werenumbered. However, the suave and sophisticated leader re-invented the

company, established a world-class factory in Chakan and invested inresearch and development and came up with Bajaj Pulsar motorcycle in2002. Bajaj Pulsar was a clear leader in its segment, In the words ofRajiv Bajaj, his elder son When we started, we asked ourselves ifChetak was the largest selling two-wheeler for 35 years, and Splendor forthe next 10 years, what will it take to make the largest selling two-wheeler

for the next 10 years. He surely has way to go.

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INDIAN CORPORATE AND

FINANCIAL GIANTSMUTHOOT GROUP

Muthoot Precious Corporation in association with Indus IndBank is now marketing 999.9 pure gold coins and bars imported fromSwitzerland. These pure gold coins and bars are available indenominations of 5, 10 and 50 grams, in tamper-proof packs along andwith a certificate of authenticity. They are ideal for investment purpose butcan also be used as gift for your dear ones. A finance scheme that lets u

pay the cost of the gold coins and bars in monthly installments are alsoavailable.

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INDIAN CORPORATE AND

FINANCIAL GIANTSCONCLUSIONWe as a country, must realize that deregulation and the free

market economy is not a luxury, it is not a largesse being showered by

the government on the private sector, it is not a favour being done by thegovernment. It is a compulsion. If we do not deregulate, if we do not cutdown bureaucratic delays, if we do not untangle the red tape, if we do notbring efficiency to the public sector, how will prosperity come to thiscountry.

Therefore, let us all realize the deregulation, decentralization

and liberalization are actions essential to the countrys self-preservationin a world where there is intense competition among countries to attractcapital and investments. The task of integrating with the world economyis a task of enormous and stupendous magnitude. Mere slogans andspeeches will not help.