How can Indian firms become strong?

Individuals and firms in India are being inhibited from the required engagement with globalisation

- AJAY SHAH

The essence of a successful India is one where individuals and firms are full participants in the global economy. Individuals in India who build strong and capable firms require full access to constructing entities and moving money across the globe. There are many relics of Indian socialism which interfere with this, such as the concern about round-tripping, and hostility towards entities outside India controlled by Indian persons. Similarly, there is little economic logic in the minimum-float rule of 25 per cent, laid down by the Securities and Exchange Board of India (Sebi). Policymakers in India should take two steps back and ask: How can the Indian state create conditions for Indian persons to succeed in the game of globalisation? The most successful and the most important firms of the world operate across national boundaries.