The New Shape of Indian Industry

The captains of Indian industry used to be content to do business in the protective cocoon of an inward-looking, insular domestic market. Today, Indian industry is emerging with a new image: more confident and ready to take on the world.

There’s been a makeover of Indian industry, said Natraj Srinivasan, director general of the Confederation of Indian Industry. Indian industry leaders are pleading with their government to further open India ’s doors to foreign and direct investment, he said.

The need is great India will require an estimated $600 billion worth of energy and infrastructure costs alone by 2012, said Anil Naik, chairman of Larsen & Toubro, India’s largest engineering and construction conglomerate. Naik added that a month ago, housing and real estate development were thrown open for 100 percent foreign and direct investment.

Srinivasan and Naik were part of an eight-member panel of Indian business leaders who spoke to about 200 students and guests April 14 at the Hyde Park Center. Moderated by Puneet Manchanda, associate professor of marketing, the discussion was sponsored by South Asia Business Group, a student organization.

India has the potential to become an economic powerhouse, said Sunil Kant Munjal, CEO of Hero Corporate Services. One advantage is its very eager to learn, very eager to grow young people, with 54 percent of the population below the age of 25.

One challenge is finding ways to bring millions of people who earn less than a dollar a day into the modern economy, he said.

In the past, India’s government tightly controlled the reins of business, but extreme change has been taking place since 1991 when the government began to back off, Munjal said. Now Indian companies are jostling for their place in the global economy, making inroads in such countries as the United Kingdom and China.

 

Panelists included

Scott Bayman, president and CEO, GE India
Suketo Shah, president and director, Mukand Limited
Anil Naik, chairman, Larsen & Toubro
Sunil Kant Munjal, CEO, Hero Corporate Services
Natraj Srinivasan, director general, Confederation of Indian Industry
Arun Maira, chairman, BCG (Indian Practice)
Avnis Bajaj, country manager, eBay, India
M. V. Subbiah, visiting scholar, Kellogg School of Management

 

 

Mary Sue Penn