During earlier times India’s prosperity attracted communities across boundaries
Strategies adopted by Mughals and Turkish
Turk Mughals settled down in India and shared the prosperity. . They bought currency with them and disrupted the barter system
Strategy of the British
Wanted to offload surplus supply due to Industrial Revolution in India to balance the demand and supply situation in U.K Managed to acquire power and became the ruler.
Banned manufacturing in India. Sent all raw materials (cotton, oilseeds etc…) to UK for conversion and value addition thus transferring wealth to UK
Indian Industry remained nonstarter. Major thrust was on cash crops neglecting food grains resulting in severe famine. Indian Economy was dominated by British economy.
World war prevented transfer of raw materials to Manchester. British decided to manufacture in India itself. This initiated the first Indian Industry – The Mumbai Textile Mills.
1930s to mid-1940s
Mahatma Gandhi directed his captains to set the basic infrastructure for Industrial and Economic development. These are the founder entrepreneurs of India. They developed various areas of basic infrastructure.
1. JRD Tata – Aviation, steel, railway, post & telegraph, power, roads, textile etc…
2. G.D Birla – Textile, vehicles, power, cement, chemicals, heavy industries, aluminum, cement etc..
3. S. L Kirloskar – Machine tools, farm equipment’s, pumps etc…
4. Jamnalal Bajaj – Two wheelers, 3 wheelers etc…
British went back leaving the business to their employees/agents/market intermediaries.
Nationalization of banks and Insurance companies made available huge funds for SSI and entrepreneurial development. It made investment available to common man challenging business monopoly
1970s to mid-1985
Emergence of new generation entrepreneurs because of funds and supporting government policies. Technocrats, artisans, rural craftsman, educated, uneducated youngsters created the greatest ever SSI development.
Resulted in excellent interdependence of SSI ands organized sector creating highest ever growth rate of 8.9% and very high addition to GDP. Organized sector could expand, diversify without any direct investment and SSI could share the prosperity.
Indian industry remained protected by license raj, permits, quotas, monopolistic market resulting into losing export and entry of cheaper better goods in gray market(Germany & Japan) resulting in worse BOP Situation and industrial sickness. Closure of several industries in organized sector.
Liberalization sets reforms rolling by scrapping export regulations. DE licensing, making import and export simpler, direct FDI in all sectors, concessions for technical know-how and collaboration. Indian entrepreneurship started.
Third generation of entrepreneurs Rahul Baja, Mahindra, Ambani, Ratan Tata, Kumarmangalam Birla proved their competencies in managing various large companies
Indian Entrepreneurship took great leap in the global market entering in to service Industry (IT, BPO, Bio Technology, hospitality etc)
India established leadership in several areas-
• Bajaj-Largest manufacture of 2 wheelers
• Ambuja cement-cheapest manufacturing of cement
Job market is changing; Companies are passing through highly unstable phase. It may call for drastic changes in their business form that will lead to change in the employee pool. Jobs and remuneration will be more result based. Those will demand high enterprising capabilities and entrepreneurship attitude.