Why India Inc. is no longer interested in India?

It is not at all surprising that India Inc. would like to shift their investment preferences away from India. The house of the Tatas that has its origins in the spirit of serving the country shown by the venerable doyen of Indian industry Shri Jamshedji defying British colonial hegemony on all businesses in India is perhaps not in tune with the prevailing ethos of doing business in India or anywhere else for that matter. This ethos is underpinned by corruption, sleaze and, under-planned and therefore unsustainable exploitation of all resources. There is a lot of collusion between global and local players, including industrial houses, the bureaucracy and the political powers that enabled big businesses to grow and reap a rich harvest since the liberalization of the early nineties. The trickle down effect of this growth was not to the extent that economic pundits of capitalism expected. Actually studies show clearly that the wealthy became more wealthy and the lowest strata in the economic hierarchy are more or less where they were before liberalization, except in certain parts of the country. Studies also show that the number of Indians who made it to the famed Forbes list topped the number of millionaires and billionaires of the emerging economies of the world in the past two decades.
Ever since investigative journalism became vigorous in India, with or without intended or unintended help and support of institutional or civil society corruption busters, ever since the visual media in particular aggressively started grilling the players in the arena, and ever since the highest court in the country started pursuing cases arising from corruption and other acts of malfeasance, it is no more business as usual in India, or for that matter any other part of the world, in view of the fact that in today's global village any trend like the corruption busting trend is bound to go global, as it has indeed done so already. Moreover, more and more global leaders are starting to realize that corruption, sleaze and, politics based on them, don't mix with any healthy and equitable economic system, be it capitalism or communism or a mixture of both. There is also the fact that the International Convention Against Corruption, the Transparency International and International Money-laundering Information Network are gaining trans-border traction.
In this scenario the most likely prognosis for the ills afflicting the investment climate in India for India Inc. is to stay the course in investing in India sans shady deals and opaque maneuvering. GST is on the anvil. Corporate laws are going for a makeover shortly. The Lok Pal bill and the Whistle Blower Protection Bills may finally take shape. All this will make for freedom from corruption and therefore greater cost effectiveness and professionalism of businesses. Many positive minded and business friendly state political dispensations are in place already and more are following this trend. This will cut down red tape. Whatever party or parties come to power at the Centre, it is unlikely that they will continue to nurture tax havens-enabled tax avoidance or evasion, or P-note driven stock market bonanzas as in the past. The fruits of such staying the course for India Inc., might be slow in coming but once they start coming they will be very durable and on solid foundations. The reason for this is that genuine market competition, with proper competition oversight mechanisms, will emerge. This will ensure that India Inc., who are second to none in the world in innovation and the spirit of healthy competition, will chart a wholesome and sustainable growth story that will set an example for other emerging markets. CAGR of businesses is only one motivator of business. Daring to break free from not so healthy ways of doing business as in the past could be a more powerful motivator for those men and women who have the vision to go for the higher levels of motivation like self actualization that Abraham Maslow outlined in his classical theory of the Hierarchy of Needs. Here is one or two from him :

“The most stable, and therefore, the most healthy self-esteem is based on deserved respect from others rather than on external fame or celebrity and unwarranted adulation.”

“If I were dropped out of a plane into the ocean and told the nearest land was a thousand miles away, I'd still swim. And I'd despise the one who gave up.”

“It isn't normal to know what we want. It is a rare and difficult psychological achievement.”

Foreign investment is welcome if it helps our economy In return the investors should be happy if they are able to make a better return on their capital than what they would get in their own country.In short it should be a win win situation.Our policymakers can make a great contribution in this direction by specifying the sectors like deep sea exploration,harnessing of solar energy,agriculture based industries increasing the output and creating jobs etc.We certainly do not need investment in our share markets or in retail business where the foreign entrants would be more of a nuisance than help.Politicians should not allow such intrusion in the guise of reforms and try to get their cut in the bargain.The investments in the latter sectors would be mostly speculative and will harm us in the longer run

Hindi term "seth" which means a rich man ,is the corrupted version of Sanskrit 'Sreshta" which means the best person ! Kings in ancient India used to honor the best businessman in his kingdom by awarding the title of "Nagar shresta" the best businessmen or Shresta of shrests . Leftist ideology when introduced in India , vilified businessmen and industrialists. So much so that "Bania" became an abuse of sorts !West Bengal and Kerala ,under Communist regime ,hounded out Businessmen/Industrialists. Bengal which used to be top industrial state ,thus became a pauper state. There are/has been many left ideologues in Congress and in bureaucracy ,who keep on implementing anti-business policies. After liberalization (Forced by IMF during Rao's regime ) it has become possible for Indian industrialists to invest in foriegn countries. They are using the opportunity even in this global slump period. If things brighten ,flight of capital may be even faster.

For every honest businessman who would like transparent and clean administration and governance there are umpteen number of the class(read businessmen) who would like it continue in the same inefficient and corrupt manner. Every one know the reason.

The only way the political class can be made to realize their responsibilities towards their electorates and constituencies is the corrupt politicians should not be patronized by the business houses. The businesses should themselves take up social development rather than leave it to the government. Let me ask, do all the businesses who clamor for clean government and bureaucracy themselves clean?

Talking about politicians, their primary aim will never change - to get elected and be in power. So why fret about them? Lastly, but not the least, the major impediment to our development is the same as it was 6 decades ago. Lack of education(read appropriate), infrastructure and basic human values, which incidentally were guaranteed to all Indians by the constitution. It is not the lack of the means, but the lack of the will and that will surely need a disruptive incidence which the same old cycle of democracy is not delivering.

Let us rise an Indian Spring.

I appreciate the sentiments of Kumarmangalam and his views are that of more or less all small, Medium or Large Industrialists
The apathy, non committal Govt policies ,unbearable corruption and above all dont care attitude by bureaucracy and Government and politicians towards Industrialists and business men ,who generate wealth for this country has created lots of frustration and depression among all of us .

Let these Big businessmen who prefer China and other countries go and invest there. These Big B's father,grandfathers got special preferences and water, everything and for throwaway price,and now they have big muscles and cash stashed and too big to fail, please go and park outside, we need only new people to occupy that space.

Yes. Big companies will definitely go out of country to seek opportunities to expant their regimes. There is chaos here at every stage. Corruption at even a very small level is increasing. After sixth pay commission the rate of corruption has increased in comparison with the remuneration. As an investor I have stopped investing in Indian companies. Even I am loosing by investing in mutual funds. God save India.

This was the problem which has in existence after the days of independence. The railway minster wants the coach factory in his state, he wants all the train to go to his town before reaching Delhi. The days are not too far when some minster will want a shipbuilding yard in a place near to deserts, if he happens to be a shipping minister from that constituency.

Warren Buffet had long before said that capital will go to the place were the cost is the least! But this lesson is not for our leaders who cannot look beyond their nose nay whom to blame but our self because we vote them! One should learn to say vanate matram devoid of any pride of being Indian.

Its like rudderless for India inc and there if there is something missing seriously that is the kind of thirst in Indian policy maker to bring changes in running flop show.Nothing is wrong enough can't be changed to favorable we do not need Lokpal but really need effective/charismatic Leadership. As there is one state from the same nation attracting not only Indian but Investor from all over the world without being affected with any economic downturn.