Condensing the economic history of a country as old, vast and complex as India into 366 pages is a challenging task. Considering that, the authors Kshama V Kaushik and Kaushik Dutta have done a fair job.

The book's title – India Means Business -- How the Elephant Earned Its Stripes – is apt, as it narrates the journey of an economic giant of yore that was weakened and had lost its way, finding its ground again. From indigenous businesses and financial practices to the impact of colonial rule, to the Indian economy's multi-stage evolution in the post-Independence period – it covers a wide canvas, and brings out the key role played by family businesses, State-owned undertakings and global businesses.

That a lot of research has gone into it is evident from the numerous studies the book draws upon. There are many interesting anecdotes about people and companies, which help break the monotony of a rather formidable read. But, the absence of visual relief is felt. Narrations about financial instruments such as hundis (bills of exchange) and practices such as bahi-khata (double-entry accounting) and parta (MIS reporting) establish the age-old moorings of Indian business.

The authors also bring out how businessmen in India, a pragmatic lot, made a fine art of running with the hares and hunting with the hounds. From Jagat Seth, who played an important role in the establishment of British rule in India, to businessmen during the days of the empire who struck a balance between Swadeshi sentiments and ruling class sensibilities, the book shows that business and politics have always been closely intertwined in this country.

Key events

Key events in independent India are dealt with great detail - the ‘commanding heights' role played by the Government after Independence, the restrictive policies of the 1960s, exorbitant tax rates that stifled investments, license raj, the watershed reforms in 1991 which unshackled the economy, and the high-growth period in recent years. There are interesting narratives on how many established players fell by the wayside as new businessmen rose to prominence in the post-liberalisation era.

It also touches upon the look-outward policy being adopted by many Indian business houses, resulting in global takeovers and acquisitions.

Successful business practices such as the co-operative movement, micro-financing and off-shoring have been mentioned. The authors, however, caution that labour cost arbitrage, which has been the bedrock of success in the off-shoring business, may not be sustainable in the long-term. The need for greater innovation and R&D in business is underlined. The problem of digital divide in the country has also been brought out.

All said and done, the authors believe that despite the myriad challenges it faces, the Indian economy is at a tipping point and has the ability to fulfil its high potential and promise in the coming years.

While overall it is a good read, what is missing is the latest developments in the economy that have cast a shadow over India's growth story. A chapter on the numerous scams and policy paralysis, including the rise of crony capitalism, would have been helpful. Another interesting aspect of the changing landscape of Indian business that could have been dealt with is the rise of Dalit entrepreneurs.

Also, the effusive praise of entities such as BSNL and Air India seems out of place and not in sync with reality, considering the difficult condition these companies are in. Likewise, while wealth generation by the Ambani brothers after their split has been talked about, there is little mention about the high-decibel squabble between them, and its implications on the Indian economy.

Is the book a racy read? Maybe not, but that's understandable.

Is it informative? Sure, it is, and the book will be quite handy for students of economics and those interested in the evolution of the country's economic history.

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