Comments on: Deregulation In India During These Tough Times

By: Biswajyoti Das

Biswajyoti Das — Sat, 16 May 2009 08:31:27 +0000

Sujoy makes a very interesting point….”win-win”!!
It takes us back to the 80′s when the only automobile company Maruti in India was taken aback by the the Government’s decision to allow foreign investors to invest in India. But it became a blessing in disguise when Suzuki after its coming to India led to the inception of Maruti Suzuki , and the rest is history.
so the bottom line is that …deregulation can lead to such tie-ups and can work wonders for the domestic companies…in other words a win-win situation.

By: Sujoy

Sujoy — Tue, 12 May 2009 04:27:44 +0000

I think Suresh’s insights are spot-on. It’s high time the Indian government took serious measures to liberalise the Indian Retail sector. I am sure it would be a win-win for both the corporates as well as the consumers.

By: Suresh Dalai

Suresh Dalai — Sun, 26 Apr 2009 04:40:59 +0000

It is not necessarily so that domestic companies will fail once doors are open to foreign companies. Many domestic competitors have important advantages that foreign entrants cannot replicate — knowledge of the product features that local consumers actually need, how to communicate these features in ways that these consumers will understand, relationships with government agencies and regulators, and ways to keep operating costs low that foreign companies would not even consider. Historically, many domestic companies have survived and thrived after deregulation — in the deregulated automotive sector, Maruti and Tata still dominate, due to their building automobiles that are well-suited to Indian consumers’ needs and desires. In China, in the completely deregulated retail sector, domestic companies such as Wumart and Lianhua still dominate despite entrants of foreign behemoths Wal-Mart and Carrefour. The added foreign competition has made the domestic companies faster and stronger.

By: Adv. Pragmaticoutsourcing

Adv. Pragmaticoutsourcing — Sun, 19 Apr 2009 10:01:55 +0000

Thanks for this thought provoking write up. I see a bright ray of hope in between the grey clouds of economic slowdown. After general election, centre Govt. is expected to relax many norms as the gesture for the foreign investment.

By: Kiran

Kiran — Tue, 14 Apr 2009 09:19:08 +0000

Sources say that in 2009 globally FDI is going to significantly drop. In this scenario, can India afford to be choosy about which sectors it allows / disallows FDI?

By: Biswajyoti Das

Biswajyoti Das — Mon, 30 Mar 2009 13:48:04 +0000

I totally second the opinion that allowing foreign investors can prove to be a major step in providing considerable respite in this time of crisis. Apart from increasing consumption space, bringing in liquidity and providing employments the foreign investors will also pave ways to greater exposure of the Indian market to the world. India has always been a major consumption hub and this resource has not being exploited fully yet.
But on the other side of the coin, the government is perplexed . No doubt, foreign participation can be a boon now ,but chances are high that they will overthrow the domestic markets completely which are struggling desperately to be alive.May be this is one of the reasons why the government is hesitant in allowing foreign investors.