Liberalization and globalization of economy has created enormous pressure on Indian companies to change. In order to survive and grow in the fast changing competitive market, a paradigm shift is needed for Indian firms. It has become inevitable for Indian companies to be competitive by focusing on customer, competition and competencies, the three important aspects of modern business. However, it requires tremendous effort, cultural transformation and change in outlook for Indian companies to emulate this paradigm shift.
Indian
business and industry are no doubt under enormous
pressure owing to the impact of liberalization and
globalization of the Indian economy. However, the rise
of Islamic fundamentalism showing its ugly head in the
terrorist attacks on the US followed by the US war
against Al-Qaeda in Afghanistan have worsened the
situation. The tremors of Indo-Pak war have only added
to the complexity of the already subdued business
environment in India as well as across the globe. Now,
with the Allied forces again involved in a war with Iraq
with no indication regarding the timing of the outcome,
further problems can only be expected.
On
the other hand, our northern neighbor, China, has stolen
a clear march over us in the realm of industrial growth.
It has set up such huge manufacturing facilities, which
have resulted in very low cost per unit. Political
governance in that country is very disciplined too. The
process of liberalization in China started in 1979 has
been steadily maintained. As a result of all this China
accounts for 4% of global trade while we are less than
1%. They have received FDI flows of over US $42 bn in
the year 2001-02, while India could get only about US
$2.5 bn. |
