Transformation real for Indian business, says expert

Ahmedabad, Nov 24 (UNI) With the market being deregulated and rising competition (both foreign and domestic) in the last 15 years, the Indian business has survived and grown in this new environment, an expert said.

Speaking at a panel discussion of 'Confluence-2006' seminar ''New Horizon - Catalysts for Growth'', organised by IIM-A here, KPMG Executive Director (Advisory Service) Arvind Mahajan said the business world has transformed in the past 15 years. This is a significant change from the very regulated, insulated and not well-integrated market of pre-1991 era.

''In the last five years I have closely watched the transformation that is taking place in the Indian industry. India is moving into a new horizon,'' he said.

He said number of sectors have shown growth like automotive and pharmaceuticals with certain businesses like IT&ITES, telecom, airlines, new media houses, all from the private sectors, have shown a radical change. A lot has happened in services sector and in the manufacturing sector.

Mr Mahajan said the growth has been from organic to inorganic.

There is clear transformation. What drove this change? Competitive ethos has resulted in this growth. Even SMEs like Suzlon and Amtech have grown rapidly. Unlike China, Indian growth has been led by the private sector.

With the Indian companies creating new ways of doing business, it is driving the profit graph up for the companies. For the first time, India overtook China in fund inflows in the last nine months, he said, adding that with domestic market advantage, the companies are set to make hay.

More UNI VNB SSS AW1647