The Hindu Business Line : The growing competitiveness of India Inc

Many companies in these two sectors have won contracts or acquired companies against global competition, proving that their underlying business models are robust.

They have also been able to identify the right business opportunities and grow them further. The main reasons for these two sectors achieving this status are:

Intellectual property is respected in these sectors.

These sectors do not have to depend on poor infrastructure that is not globally competitive. For example, the engineering sector, to be competitive, would require a globally competitive steel industry.

These two sectors are knowledge driven and innovation based.

India Inc has established itself in these industries while it is yet to prove its mettle in others in global competitiveness.

Financial services is another sector that has much potential, with the right policy incentives.

Going by the underlying factors for growth and global competitiveness of IT and pharma companies, financial services should indeed prove the point by becoming globally competitive.

But one may need to wait at least 10 years for this to happen, provided, of course, the Government takes the right policy initiatives vis-à-vis this sector.

(The author is a Senior Manager, Supply Chain at Dr. Reddy's Laboratories, Hyderabad. The views are personal.)

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