Braving the downturn (Part II) :Wisdom Stimulus

In a knowledge economy , people made money , by the way of looking things in different perception .

This perception change happened in every sphere of society . We looked at the things differently and there are positive remuneration we got for it.

Still , we failed collectively to look at one big thing from a different perspective .

And that one big thing , put a big full stop in all our efforts to transform ourself into a new direction of knowledge economy.

We changes the upper layers , however we had not still change the fundamentals the basics.

Our perception of money , stays as it is , and that is the crux of the present economic crisis.

Braving the downturn : Are lessons from Gita - the real stimulus ?

The global leaders of G20 gave a stimulus package of $1.1 trillion for the world. Can it solve the problem ?

Stimulus package are the part or perception game that Government plays to raise the market sentiments .

Government needs help , because there regulation where the part of the problem earlier. Now there perception block adds to it .

A real help can be done by an entreprenuer because they where always the part of the solution. Rather then hitting a perception block , they always changes the perception . They made there money , with just a different way of looking things.

Seeing problems as oppurtunity , reccesion as the ideal time for innovation.

Chanakya to Lakshmi Narayan Mittal : The History of Indian Business (The End)

The New India

After 1991 , a new India emerged after the Balance of Payment(BoP) crisis. The balance of crisis, which show Indian currencies falling rapidly also forced the Government, to take a new direction . India, from a socialistic and protected economy moved to capitalist and market economy.

A thriving new affluent middle class came into existence . The neglected software sector of Indian Business , became the new poster boy for India’s Business success . The economic reforms which was forced , by the troubling situation , India faced in the times of 1991 , actually brought a new level of change . There where blocbusters IT companies, which came out from Indian young generation . It is these time onwards, that three major IT companies of India, made its mark in the World – Infosys,Wipro and TCS .

The market economy also brought substantial change in the Indian society . It seemed for some time , that India has opened up, and the entire cultural psyche , is going through a strong transformation . The internet also brought a new revolution to Indian Business . Though things look pretty positive , India still didn’t become an economic superpower.

However , with the Year 2000 crisis, followed by the advent of outsourcing Industry, put Indian business in the global map from 2001 onwards . Suddenly, the world started talking about the power of Indian Business . The media started treating Business tycoons, as new form of celebrities . The perception, about entrepreneur in the whole country changed from an 'Machiavellian exploiter' to an 'Social Transformer' . The institutes around India , started encouraging entrepreneurship as a profession .

It was all great, before 'Global financial crisis' broke up in June 2007. Suddenly things moved backward, and we seem to reach the same planes of 1991, Bop crisis .

The question is, as Bop crisis in 1991, helped India to emerge as a economic superpower , in the same way, do the Global financial crisis , will help India to emerge as a Global Leader.


References

-Macromanagement and Business Environment: Analysis of the 1991 Indian Economic Crisis Saraogi, Ravi
- Acharya, Shankar (2002): ‘Macroeconomic Management in the Nineties’, Economic and Political Weekly, April 20
- Acharya, Shankar (2003): ‘India’s Economy: Some Issues and Answers’, Academic Foundation, New Delhi
- Ahluwalia, S Montek (1999): ‘India’s Economic Reforms- An Appraisal’, The Planning Commission,Articles, Aug 26
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Chanakya to Lakshmi Narayan Mittal : History of Indian Business ( Part 3)

However after freedom of India , the trusteeship model of business which was so appreciated by Gandhi was given away to an Industrial model . Nehru , was very fond of the Soviet model of state controlled Industrialization. The decisions which are taken by Nehru on the context of Indian Business History was followed by more or less all the Goverments,from the period of 1947 to 1991 .

Obviously these state controlled model has given a lot more security to some of the failing sectors of India . The period known as ‘Licese Raj’ was a tough period for entrepreneurs as they has to struggle a lot, to get the regulation in there favour. Dhirubhai Ambani formed Reliance group at this point, which later became one of the largest private company in India.

Inspite of regulatory difficulties entrepreneurs from Marwari and Parsee community showed steady growth at these time . At the same time , icons are also created . At 1976 , Hindustan Computer Limited (HCL) came into existence . It made pioneering efforts which reshaped IT industry in India long back.

In 1991 , only this state controlled industrial model came into monetary trouble. This is the time , when India ,look loans from IMF and the structural adjustment model was applied .

Chanakya to Lakshmi Narayan Mittal : History of Indian Business - 2

Marwari businessman made a remarkable rise in the early 19th Century in Calcutta. There general characteristics remain astute , cleverness and also strict money mindness . Intially they where selling Indian textiles to British markets and then importing the British textiles in Indian markets .

However when the need for the Indian textiles in British market vanished , they diversified into other markets . However , most of the famous businessman in 19th century, started from the cotton industries only . Though most of them are severly money minded and have been alleged as a scrupulous collaborator , who by and large doesn’t bother anything more than money .There was person who was very different from the regular scheme of things .

Jamanalal Bajaj , who also started from the same cotton industries had a bend of ascetism from his earlier days , when he was adopted by the Bajaj family . He had a great leadership skills and made his business successful in his very early age . However , he was influenced very much by the Mahatma Gandhi’s model of trusteeship in Business . Gandhi use to consider Bajaj as his 5th son . Jamanalal implemented the ideals of Gandhi in his business which is a more concise version of Gandhi’s political framework of ‘Satyagraha’.

The trusteeship model , could be said as the earlier version of ‘Corporate social responsibility’ . The entrepreneur was only allowed to take the required remuneration for his sustenance and the rest of his profit he should share with his stakeholders , employees and larger society . Gandhi further gave advise on the tactical dimension of the model . He asked not to incur debts , not to give credit , not to deal with forbidden goods , and not to engage in a business , of a get rich quickly scheme.

(To be continued ….)

References

1.http://mutiny.in/2008/06/17/kalikatha-via-bye-pass-the-marwaris-of-kolkata/
2.http://www.calcuttayellowpages.com/marwaris.html