베인은 홈페이지 기능 및 성능 개선을 위해 쿠키를 사용합니다. 이와 관련된 더 많은 정보는 개인정보 메뉴에서 확인하실 수 있습니다. 이 웹사이트를 계속 사용하시면 쿠키 사용에 동의하신 것으로 간주됩니다. 

LiveMint.com

Liberalization’s Lasting Impact: Rules-based Regime, Disintermediation

Liberalization’s Lasting Impact: Rules-based Regime, Disintermediation

The Indian government should retreat from being a direct service provider in major sectors.

  • 2016년7월18일
  • 읽기 소요시간

Article

Liberalization’s Lasting Impact: Rules-based Regime, Disintermediation

This article originally appeared on Livemint.

Much before disruption became a keenly discussed topic in global boardrooms, the mother of all such upheavals played out here when the new industrial policy of 1991 was announced. The government was no longer to be the clearing house for new businesses as a more rules-based regime was ushered in. For companies, the policy changed the rules of competition: Instead of focusing on managing government systems, firms could now make their own strategic choices and leverage their capabilities to stay ahead of the curve—to the greater benefit of the corporate sector.

Starting up easier, but mixed bag across sectors and states


Entry barriers have eased and more companies are able to enter and compete in India today. To make it easier for companies to start up, the government recently launched an ambitious programme of regulatory reforms, which included simplified application forms, removal of the minimum capital requirement, an online tax-filing option and a much faster process for getting electricity connections. Resultantly, the number of days to register a new business has drastically improved—to 29 days in 2015, up from the 127 days in 2004 as recorded in the World Bank’s Ease of Doing Business index—though still below the OECD (Organisation for Economic Cooperation and Development) average of 8.3 days.

It was also critical for the government to cede ground on economic affairs and divest its stake in state-run companies to facilitate the entry of private players and foster real competition. But the government’s record on disinvestment has been sketchy at best, having missed the disinvestment target 16 times in the past 25 years. Only 42% of the disinvestment target (often used for plugging revenue gaps in the budget) was achieved in 2015.

Read the full article at Livemint.

Sri Rajan is chairman, Bain & Co., India. Nikhil Prasad Ojha is a partner with Bain & Co. in Mumbai and co-editor of the Mint-Bain series 25 Years of Reforms. Shyam Unnikrishnan is a principal in the firm and a member of the strategy and consumer products and retail practices in India.

태그

베인에 궁금하신 점이 있으신가요?

베인은 글로벌 리더들이 중요한 이슈를 해결하고 기회를 놓치지 않도록 지원합니다. 고객사와 협력하여 지속되는 변화와 성과를 창출합니다.