As I reflect on the evolving landscape of Indian management, a profound transformation comes to mind. The rise and fall of Indian managers, and the shifting tides of investment from global to domestic capital, mark a significant phase in today’s corporate journey. With Global Fund managers reducing attention to India, this transition has paved the way for domestic capital to take the forefront, fostering a unique ecosystem driven by organizational capabilities, innovative management practices, and a distinctive company culture.
Changing Investment Dynamics
The gradual withdrawal of international giants has not stymied India's growth; rather, it has sparked a resurgence of domestic capital. Indian enterprises have shown resilience, tapping into local resources and talents. This shift signifies a newfound confidence in our domestic markets, where homegrown investors recognize the potential and are willing to back innovative ventures. The dynamic nature of the Indian economy, with its burgeoning middle class and entrepreneurial spirit, fuels this transformation.
Companies are now focusing on profitability and sustainable growth rather than rapid, investment-driven expansion. This shift is evident in sectors like real estate, technology and pharma and healthcare, where firms are leveraging domestic funding to innovate and expand their market presence.
The India Way of Doing Business
If we look back to the 90s era, India was known to be a closed economy; and the general perception was that once the economy opens up, it would be taken over by the large multinationals. Instead, the opposite happened - Indian businesses reacted positively to the opening of the economy. Over a period of time, Indian businesses have become bigger and more global, and they have a unique way of doing business or should I say the Indian way of doing business.
Economic Resilience
The rise of domestic capital has contributed to a reduction in volatility associated with foreign investment, leading to greater financial stability. With Indian investors having a more intrinsic understanding of local market dynamics, the investments are better aligned with the country's economic goals.
As per recent data from the Department for Promotion of Industry and Internal Trade, there is a decline in FDI inflows from US and Europe, with a corresponding increase in investments from Indian venture capitalists and private equity firms.
Jugaad Innovation – A Frugal & Flexible Approach
Many years ago, I had read a book on Jugaad Innovation by author Navi Rajdou. While it was a unique term coined, I thought it’s just a nice buzzword, which went on to become the heartbeat of Indian businesses. This frugal approach to problem solving fostered a culture of creativity and resilience, pushing them to think out of the box, leading to some unique solutions and driving growth in this competitive market.
My take
Indian managers will play a pivotal role in strengthening global collaborations – forging strategic partnerships and driving cross-border investments and knowledge exchange. The rise and fall of Indian managers is not an end but a new beginning. They will not only drive national growth but also shape the global economic order.
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