000-tobecategorised

Decoding the mystery of MNC exits from India  https://www.businesstoday.in/opinion/columns/story/decoding-the-mystery-of-mnc-exits-from-india-343768-2022-08-04
Companies have left India for various reasons. In the case of some companies, the decision to leave India was attributed to a multi-nation strategy to get out of non-profitable operations and focus on easier markets.

one would expect India to top the list of multinational corporations scouting for an investment destination...despite the red carpet, liberal policies and incentives, it is also true that India has not exactly been a happy hunting ground for several other MNCs. The government revealed in Parliament in December last year that as many as 2,783 foreign companies and their subsidiaries ceased operations in India between 2014 and November 2021. Some of the notable exits include Cairn Energy, Holcim, Daiichi Sankyo, Carrefour, Henkel, Harley Davidson and Ford... In India,, MNCs have exited due to arbitrary tax regime, accumulated losses, over capacity, land acquisition issues and lack of expected growth due to market anomalies. In case of some companies, the decision to leave India was attributed to multi-nation strategy to get out of non-profitable operations and focus on easier markets. Then, there were some auto players that set up base in India and brought technology and products that had stopped selling in global markets. While they received initial success and paid little attention to upgradation, the domestic firms started making better products slowly and steadily. As a result, the MNCs were eventually pushed out.

there are also some rare cases.. the latest such case is that of German wholesale giant METRO Cash and Carry. The company has grown in a robust manner, forged strong partnerships with local kiranas and made steady investments in store expansions and digitalisation. Its deep commitment to domestic customers can be gauged fact that it has stayed in India for the past 19 years despite running losses for 14 consecutive years. Having turned the corner, it’s reportedly making profits for the past four years and its B2B operations across 31 stores have immensely benefitted small retailers...In balance, considering METRO has done all the hard work and now understands the Indian market and customers at par with its rivals, stitching up a partnership with a strong local player seems to be a better option since it can now expect strong returns on its past investments. Whatever the outcome of the strategic review, the company will face headwinds, even though it is obvious that the public rumours and attacks do not have any basis.

Why did Make in India drive fail? https://www.thehansindia.com/hans/opinion/news-analysis/why-did-make-in-india-drive-fail-786441    Dr M Suresh Babu Hans News Service | 7 Mar 2023

India has lost its position as a destination for portfolio capital.

There was simply no way that FDI could create millions of jobs every year in India... while Indian labor is cheap, it's not productive enough dues to many constraints. Plus, the Union government's support for foreigners coming in is somewhat reluctant. So, the Union government now wants Assemble in India. That too will have limited impact.

4 policy failure can be identified: overly optimistic expectations, implementation in dispersed governance, inadequate collaborative policymaking, and the vagaries of the political cycle

Overall, the Make in India campaign failed to create an international niche market as promised and lost its position as a destination for portfolio capital. The policy was overly optimistic and lacked proper implementation, resulting in limited impact and failure to achieve its objectives.

Hindutva, Economic Neoliberalism and the Abuse of Economic Statistics in India Jayati Ghosh https://doi.org/10.4000/samaj.6882  https://journals.openedition.org/samaj/pdf/6882

Economist Jayati Ghosh, in a piece titled Hindutva, Economic Neoliberalism and the Abuse of Economic Statistics in India, explained how the Narendra Modi government’s efforts at implementing the Hindutva agenda adversely affects economic activity.

Quoting examples of the 2002 Gujarat riots and the 2013 Muzaffarnagar riots, she said, “Riots – often instigated cynically by proponents of Hindutva for political and other purposes – are clearly not economically beneficial in the aggregate. However, they can sometimes lead to benefits for part