Global recession: time to act now

The global recession currently gripping the major economies of the world appears to be deepening; most predictions now indicate that a turnaround may be as many as six months away. The Indian economy, too, has been influenced by these global trends but the sheer size of the Indian market and the relatively low dependence on exports insulates the country significantly from unfavourable global trends in economic growth. India would, therefore, have to do well to maintain a growth rate of about five per cent in the current fiscal year and aim for a significant increase in the following year. However, in order to bring about a resurgence in the Indian economy, it would be essential to ensure a bigger flow of foreign direct investment. This would require a major change in our decision-making processes and mindsets of several government departments involved in economic decision-making. The Prime Minister?s recent visit to Japan apparently provoked some candid talk by industrialists in that country, who find it extremely difficult to do business in India not only because of corruption and bureaucratic hurdles but also due to a general apathy to business and businessmen that the official system seems to display. It is not unusual, for instance, for a minister in the Chinese government to receive a visiting head of a major multinational corporation at the airport in Beijing. In India, on the other hand, the same chief executive may find it difficult to get an appointment with the minister, and even when he does, it may involve waiting in the visitors? room often beyond the appointed time. There is need for all the political parties in the Indian spectrum to understand the imperatives of business and a business-like attitude on the part of all government leaders and officials for the benefit of the country. If India has to take advantage of current global opportunities, then a total change in mindsets is essential. Business must be treated as a vitally important objective of government decision-making. The Government, perhaps, has to create dialogue and consensus on these issues and strive to set its own house in order so that those in the opposition and all those who are part of the ruling coalition in New Delhi realize and accept the importance of a more positive and facilitating role in bringing business and investments from over the world into India. Time is running out and the current Government must seize the initiative for bringing about a major change in this arena.