Advertisement
Tuesday, Nov 30, 2021
Outlook.com
Economy

More Certainly Isn't Merrier

As India heads for yet another coalition, industry leaders are worried for its in-built chaos mechanism could spell disaster

More Certainly Isn't Merrier
More Certainly Isn't Merrier
outlookindia.com
-0001-11-30T00:00:00+05:53

A coalition government at the Centre is now a certainty. That, says the Indian industry, is the last thing it needs. Says Rahul Bajaj, chairman, Bajaj Auto: "Coalition governments by their very nature are more prone to populist pressure that could come in the way of taking decisions." And quick and hard decisions are the need of the hour. Swimming through one of its worst phases in recent times, industry has clocked a puny growth of 4.7 per cent in April-December, 1997-98. That’s exactly half of what it achieved in the three-quarters of last year, in itself a dismal one. And the worst may be still to come. Adds Ramesh Panicker of Lloyds Finance: "There is a definite lack of confidence in the market, so any government that gives stability will be welcome."

 If 1994-95 was the year of enthusiasm and expansion, 1995-96 caution and consolidation, and 1996-97 of crisis of confidence, then 1997-98 would be the year of rude shocks and storms. Few companies have been able to escape the impact of declining asset values, slowing consumption, soaring interest rates, rising inventories, export slump, rickety infrastructure and increased competition. "Virtually the entire industry is on the auction block," say Jayant Dang, managing director, Escorts Finance. And as if this was not enough, the country now faces another cobbled-together government with an inbuilt chaos mechanism.

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

How Parag Agrawal Obsessively Focused On Controlling Hate Speech As Twitter CTO

How Parag Agrawal Obsessively Focused On Controlling Hate Speech As Twitter CTO

After taking over as CTO of Twitter, Parag Agrawal’s main focus was on using AI and ML to identify hate speech and bots that were used to spread misinformation through the microblogging site.

'Omicron Virus' Or 'South Africa Variant'? Here's What Not To Call New Covid-19 Strain

'Omicron Virus' Or 'South Africa Variant'? Here's What Not To Call New Covid-19 Strain

The Omicron variant of Covid-19 has led to several discussions on WHO's method of naming virus variants on Greek alphabets. But terms like 'South Africa virus' have remained in use.

IPL Retention, Live Updates: Rashid, Hardik Not Retained

IPL Retention, Live Updates: Rashid, Hardik Not Retained

Will the IPL team owners value loyalty, performance, or a combination of both while retaining players? As the drama unfolds, follow live updates here.

Opposition Unity: Act Fast Or Perish, TMC Makes Its Message Ring Louder

Opposition Unity: Act Fast Or Perish, TMC Makes Its Message Ring Louder

TMC Supremo Mamata Banerjee is set to meet the leadership of the Shiv Sena and NCP in the backdrop of her deliberate decision not to meet Sonia Gandhi.

Advertisement