REFORMS AND THE CORPORATE WORLD

Abstract

There is a world-wide wave for reforms. The corporate sector is expected to be in the forefront. But, presently, it appears to be in the grip of paradoxes of ever-growing need for liquidity in the grip of low own savings; apprehension of foreign investors in the face of foreign flows and technology; little attention to cost and price competitiveness and R&D in the face of the lauded objective of $100 billion exports by the turn of the century and the like. The growth rate of the country has much to do with structural, allocational and efficiency or productivity factors than larger and larger credit alone. Cost of money is coming down. Indeed, the initial phase did receive expected responses from the corporate sector all to its own benefit. But, the new factors of competitiveness are yet to be faced. Unlike the winning Japanese, the Korean and the Chinese styles of corporate enterprises, none seems to be discussing the Indian styles of enterprise. The defensive and suspicions style of Indian enterprises seems to be making them the lasting looser.