8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 1/14

 

Presented by group 7

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 2/14

India Inc. is a common term used by the Indian media to refer to the forma(comprising government and corporate) sector of the nation.

It employed 7 per cent of the workforce in 2000 and contributed 60 per cennominal GDP of the nation.

The informal sector consists of 44 million non-farm enterprises as per recensurvey.

In September 2013, the India Inc issued a warning to the policy makers of Ithe economic and infrastructural problems plaguing the country should be daccordingly, or more companies will continue to expand their businesses abdeprive the economy of investment.

 This warning came on the back of a massive slide in the Indian rupee.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 3/14

Five of the twenty corporate leaders who constitute Prime Minister Manmohcouncil on trade and Industry didn’t turn up for its meeting on july 29 to dison how to revive growth, the current account deficit and the falling rupee.

Others who attended gave thumbs down to the government for its weakimplementation and questionable policy decisions.

Thus it seems that Indian industry captains are losing patience with UPA goinability to take timely decisions.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 4/14

Bharti Group chairman, Sunil Bharti Mittal showed concern over governmedecision to levy a penalty of Rs. 650 crores on Bharti Airtel.

Bajaj Auto chairman, Rahul Bajaj raised concern regarding protecting intereproducers and contrasted steps taken by US and Europe.

 Industrialist even raised issue of mandatory CSR(corporate social respons

They pointed out that high fiscal deficit and weakning rupee were symptomproblem of lack of reform from past 15 years.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 5/14

INDIA INC'S DISMALPERFORMANCE IN 1QFY14

Data Source: Business Standard

• Companies across have reported dismsales and profits.

• This is the lowest sain the last 13 quarte

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 6/14

Poorinfrastructure

Powershortages

Regulatoryhurdles- Corruption

• Due to lack of proper decision making by the government,Indian business continue to suffer from:

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 7/14

Land BillPolitical

turbulence

Food

Security BillBureaucracy

• India ranked 132 in list of 185 countries in ease of doing bus

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 8/14

Vodafone retrospective tax.

Idea telecom issue.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 9/14

Kiran Mazumdar-Shaw is investing about $200 million in a manufacturing pMalaysia for her biotechnology firm Biocon Ltd to offset unreliable power ansupplies back in India.

“If India had better infrastructure and more availability of power I may not haabroad," said Shaw.

 Aditya Birla Group, the $40 billion diversified conglomerate that gets more tsales from overseas operations, plans to invest $1 billion setting up a chemin the United States

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 10/14

 Indian Inc's overseas direct investment, including bank guarantees issued overseas units, stood at more than US$ 21 bn in the first seven months of tThis is up 38% from the same period of 2012.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 11/14

Posco exited from six million tonnesteel project from India.

 ArcelorMittal, Mittal's company,decided not to proceed with its inOrissa to set up a 12 million tonne

steel unit in Orissa.

The problem for both was the same -delays in land acquisition and in theallocation of iron ore mines.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 12/14

Even after policy ease, FDI reforms, by government of India to attract foreig, there has been no major investment till date.

Walmart even ended its joint venture with Bharti Walmart.

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 13/14

IMF has sharply cut India’s

GDP growth.

World Bank has also scaledIndia’s growth from its earlieof 6.1% in April to 4.7% in 2

8/13/2019 India Inc Runs Out of Patience as UPA

http://slidepdf.com/reader/full/india-inc-runs-out-of-patience-as-upa 14/14

This clearly reflects that India’s growth has been dampened by policy reform

India began to experience the limits of growing without the state. Investmendown because investors lost trust in ability of state to provide a reliable andpredictable environment.

Hence , the need of hour is a joint effort by India Inc and government to resprevious growth story of 9%