Presented by group 7

India Inc. is a common term used by the Indian media to refer to the formal

(comprising government and corporate) sector of the nation.

It employed 7 per cent of the workforce in 2000 and contributed 60 per cent of the

nominal GDP of the nation.

The informal sector consists of 44 million non-farm enterprises as per recent labour

survey.
In September 2013, the India Inc issued a warning to the policy makers of India that

the economic and infrastructural problems plaguing the country should be dealt with accordingly, or more companies will continue to expand their businesses abroad and deprive the economy of investment.
This warning came on the back of a massive slide in the Indian rupee.

 Five of the twenty corporate leaders who constitute Prime Minister Manmohan Singhs

council on trade and Industry didnt turn up for its meeting on july 29 to discuss ideas on how to revive growth, the current account deficit and the falling rupee.

Others who attended gave thumbs down to the government for its weak

implementation and questionable policy decisions.

Thus it seems that Indian industry captains are losing patience with UPA governments

inability to take timely decisions.

 Bharti Group chairman, Sunil Bharti Mittal showed concern over governments

decision to levy a penalty of Rs. 650 crores on Bharti Airtel.

Bajaj Auto chairman, Rahul Bajaj raised concern regarding protecting interest of local

producers and contrasted steps taken by US and Europe.

Industrialist even raised issue of mandatory CSR(corporate social responsibility).

They pointed out that high fiscal deficit and weakning rupee were symptoms of real

problem of lack of reform from past 15 years.

INDIA INC'S DISMAL PERFORMANCE IN 1QFY14

Companies across market caps have reported dismal growth in sales and profits. This is the lowest sales growth in the last 13 quarters.

Data Source: Business Standard

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

Poor infrastructure

Power shortages

Regulatory hurdles-

Corruption

Land Bill

Political turbulence

Food Security Bill

Bureaucracy

India ranked 132 in list of 185 countries in ease of doing business.

 Vodafone retrospective tax.

Idea telecom issue.

 Kiran Mazumdar-Shaw is investing about $200 million in a manufacturing plant in

Malaysia for her biotechnology firm Biocon Ltd to offset unreliable power and water supplies back in India.
If India had better infrastructure and more availability of power I may not have gone

abroad," said Shaw.

Aditya Birla Group, the $40 billion diversified conglomerate that gets more than half its

sales from overseas operations, plans to invest $1 billion setting up a chemical plant in the United States

 Indian Inc's overseas direct investment, including bank guarantees issued to

overseas units, stood at more than US$ 21 bn in the first seven months of this year. This is up 38% from the same period of 2012.

 Posco exited from six million tonne

steel project from India.

ArcelorMittal, Mittal's company,

decided not to proceed with its in Orissa to set up a 12 million tonne steel unit in Orissa.
The problem for both was the same -

delays in land acquisition and in the allocation of iron ore mines.

 Even after policy ease, FDI reforms, by government of India to attract foreign investors

, there has been no major investment till date.

Walmart even ended its joint venture with Bharti Walmart.

 IMF has sharply cut Indias next year

GDP growth.
World Bank has also scaled down

Indias growth from its earlier forecast of 6.1% in April to 4.7% in 2013-14.

 This clearly reflects that Indias growth has been dampened by policy reforms.

India began to experience the limits of growing without the state. Investments slowed

down because investors lost trust in ability of state to provide a reliable and predictable environment.
Hence , the need of hour is a joint effort by India Inc and government to restore Indias

previous growth story of 9%