Asian Management - Management in India Essay Example | Topics and Well Written Essays - 1500 words

Asian Management - Management in India - Essay Example Indian economy during 1950 to 1980 was highly dominated by the agriculture sector and the five year plan. Some of the acts which were introduced during this period were Industrial Policy Resolution 1956 also called as the unleashing of ‘license raj’, Monopolies and Restrictive Trade Practices Act (MRTP) and Import substitution. (PBS, 2004) Bureaucratic control of private sector through licenses, permits, taxes and tariff infuriated quality global competitiveness and managerial imagination. This high level restriction, poor quality of infrastructure along with high level of corruption caused to migration of entrepreneurs from India. Family conglomeration was seen in the Indian corporate sector led by names like Birla, Reliance, Tata, Bajaj, Mahindra, Godrej and Thapar. Rajiv Gandhi emphasizes economic liberalization and pushes for development of the technology sector. The government introduces economic reforms, including reduced quantitative restrictions on imports, decreased subsidies, fewer licensing requirements, the sale of shares in select public enterprises, and tax reforms.(Source: Veen R.V., 2006) During this period of liberalization comprehensive changes were seen in the mindset of corporate leaders. India became the host for the global firms which brought world class management in the country. Indian education system improved and India produced half a million of engineers, thousands of doctor and MBAs per year. Indian entrepreneurs who were used to the art of manipulating, managing and circumventing the regime of controls and restrictions and the power centre of licensing, would be able to break away from the past and rise to the occasion of liberalization. The country stepped into liberalization. The government sold off shares in its companies and opens the door to foreign investment. Liberalization brought GDP growth to 7 percent, and pushed the inflation down. A new private sector emerged, especially in technology services, side by side