Government Government should mind their should mind their own Business and own Business and not Businesses.not Businesses.

Kautilya’s exhortation to Kautilya’s exhortation to Chandragupta MauryaChandragupta Maurya

For a KingFor a KingHis vrata (religious vow) should be activity for the cause of his uttanam (people).His best religious ceremony should be the work of karyanusasanam (administration).His dakshina (highest charity) must be equality of treatment meted out to all.

India Everywhere Campaign at WEF, Davos, Switzerland

India Everywhere Campaign at WEF, Davos , Switzerland

Ease of Doing Business Report Ease of Doing Business Report byby

World Bank.World Bank. Steps Steps DaysDays

Obtain a licenseObtain a license 2020 270 270 Start a businessStart a business 1111 71 71

CountryCountry Median time to start Median time to start a Business a Business

AustraliaAustralia 2 days 2 days U.S.A.U.S.A. 5 days 5 days U.K.U.K. 18 days18 days ChinaChina 41 days41 days IndiaIndia 71 days71 days

So how has India fared………

Ease ofEase of………… Economy Economy Rank (India) Rank (India)

Doing BusinessDoing Business 116116Starting a BusinessStarting a Business 9090Dealing with LicensesDealing with Licenses 124124Hiring and FiringHiring and Firing 116116Registering PropertyRegistering Property 101101Getting CreditGetting Credit 8484Paying TaxesPaying Taxes 103103Closing a BusinessClosing a Business 118118

Source : World BankSource : World BankThe index ranks economies from 1 – 155.The index ranks economies from 1 – 155.

CaseCase

Mittal SteelMittal Steel v/s v/s ArcelorArcelor

Mittal Steel makes an unsolicited bid Mittal Steel makes an unsolicited bid of of

$ 24 billion for Arcelor$ 24 billion for Arcelor

Bid is blocked by stakeholdersBid is blocked by stakeholders

Govt. of India intervenesGovt. of India intervenes

Government & GovernanceGovernment & Governance

GovernmentGovernment

An institution that holds the An institution that holds the exclusive power to enforce certain exclusive power to enforce certain rules of social conduct in a given rules of social conduct in a given geographical area.geographical area.

GovernanceGovernance

Act or the manner of governing.Act or the manner of governing.

BusinessBusiness

An economic activityAn economic activity

Involves production or purchase of goods Involves production or purchase of goods & services& services

Involves distribution of goods & servicesInvolves distribution of goods & services

To earn profitsTo earn profits

To improve peoples standard of livingTo improve peoples standard of living

Objectives of BusinessObjectives of Business

Economic ObjectivesEconomic Objectives ProfitsProfits ROCEROCE Survival & GrowthSurvival & Growth

Social ObjectivesSocial Objectives To provide employmentTo provide employment Supply quality goodsSupply quality goods Improve standard of livingImprove standard of living Environmental protectionEnvironmental protection Justice to workersJustice to workers

Corporate GovernanceCorporate Governance

Voluntary adoption of standardsVoluntary adoption of standards

Aims to improve the business image, Aims to improve the business image, effectiveness, efficiency and social effectiveness, efficiency and social responsibilityresponsibility

Helps to avoid constant and undue Helps to avoid constant and undue Government interferenceGovernment interference

Business EnvironmentBusiness Environment

Internal Factors

ExternalFactors

BusinessDecisions

Government and Business Government and Business Relationship in IndiaRelationship in India

Provisions of the Indian Constitution Provisions of the Indian Constitution pertaining to Businesspertaining to Business

Fundamental RightsFundamental Rights

Freedom of Trade and CommerceFreedom of Trade and Commerce

Industrial PolicyIndustrial Policy

Ground RealitiesGround Realities

0

5

10

15

20

25

30

35

40

45

China India

FDI Flow inbillion

ReasonsReasons Constant Government InterferenceConstant Government Interference

(Mittal Steel v/s Arcelor)(Mittal Steel v/s Arcelor) Corruption & Bureaucracy / Red TapismCorruption & Bureaucracy / Red Tapism Lack of InfrastructureLack of Infrastructure UncertaintyUncertainty

Corruption Index

Icela

nd

(1)

Fin

lan

d (

2)

New

Zeala

nd

(3)

U.K

. (1

1)

U.S

. (1

7)

Ind

ia (

88)

0

2

4

6

8

10

12

Transparency Intl.CorruptionPerceptions Index2005

Role of Government Role of Government

Regulatory Role (IRDA, TRAI)Regulatory Role (IRDA, TRAI)

Promotional RolePromotional Role

Entrepreneurial RoleEntrepreneurial Role

Planning RolePlanning Role

Success StoriesSuccess Stories

Delhi Metro Rail Corporation (DMRC)Delhi Metro Rail Corporation (DMRC)

StructureStructureAutonomyAutonomyDelegation of Power to the CEODelegation of Power to the CEOSupport in both letter and spiritSupport in both letter and spiritMINIMUM GOVERNMENT MINIMUM GOVERNMENT

INTERFERENCEINTERFERENCE

SuggestionsSuggestions

““GOVERNMENT REGULATIONGOVERNMENT REGULATION

AND NOT AND NOT GOVERNMENT INTERFERENCEGOVERNMENT INTERFERENCE””

Thank YouThank You

Open for QuestionsOpen for Questions