Indian companies should become world’s front offices: Sanjeev Sanyal

Indian companies should aspire to be the “front offices of the world” and participate in the global supply chain process, Sanjeev Sanyal, Principal Advisor, Department of Economic Affair, Union Finance Ministry, said on Thursday.

According to him, the Centre is willing to make changes to the regulatory environment as it looks to help Indian companies.

The recent changes in rules and regulations governing the country’s information technology-enabled services (ITeS) and business processing outsourcing (BPO) firms is a positive step in that direction. Previous changes such as farm sector reforms and modification of “outdated” labour laws are further proof of the government’s intent, he said.

“Indian companies should be the front office of the world. They need not see themselves as back-offices for global players. The Centre is ready to help with all necessary regulatory support,” he pointed out during his speech at the 119th annual general meeting of the Merchants’ Chamber of Commerce and Industry.

According to Sanyal, the Atmanirbhar Bharat scheme is not be mistaken as an import-substitution policy. Rather it is one that propels India into the global supply chain and brings manufacturing units back to the country.

Options exist

Referring to the government’s “different approach” to the pandemic-led economic crisis, Sanyal said despite the all-round criticism, the Centre chose not to follow the path taken by other nations globally. Instead of “re-inflating demand,” it went for a series of different packages that were the need to the hour.

For instance, the recent package announced by the Union Finance Ministry focusses on job creation. There are chances of a further rate cut by the country’s Central Bank and so on.

The net result showed India has “not exhausted its monetary or fiscal options like others.” There is not much inflationary pressure on the economy either.

“We were criticised for not following what other countries did. We went with a series of smaller packages that were required at that point instead of re-inflating demand. Today, as it stands, India has not exhausted its monetary and fiscal options. Moreover, now with numbers coming out, our approach is being taken seriously,” he maintained.