India Mckinsey

8/7/2019 India Mckinsey

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INDIA:THE GROWTH IMPERATIVE CASE ANALYSIS

ByVasantha Kumar K 215110032

Prakash T 215110058

Gopinath K 215110062Prabhu Sundar S 215110073

Giridhar Kumar 215110097


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Case summary

Mckinsey Global Institute's scrutinized one of the developing economies

The Growth Imperative presented to PM of India on 6 th september 2001Three major barriers inhibit india s economicgrowth


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Recommendations of the Report


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Evaluation and Implications of Mckinsey report

Hut and small industries like candle wax, fireworks, etc., willbe affected severely.Equalizing sales tax, excise duties for easy control andmonitoring

Strong regulatory bodies not present even today. Eg- TRAI,MCI.,,,,

35% of power generated in India is lost in T&D(it includes theft)F ree competition is good among large industrial playersImport duties on SPECI F IC goods can be reduced


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contd..

Entry of giant corporations( F DI) in the retailsector would kill off thousands of small family-run outlets

But supply chain of the articles in the retailsector will be betterUser charges for municipal charges will affect

middle class people and the charges can beraised for higher earning individuals, thoughcut in stamp duties will attract people.


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contd..Fast tracks may facilitate quicker judgments. But India

already faces a huge crunch in the judiciary field interms of human resourcesO n July 25, 2009 Chief Justice of India K.G.Balakrishnan

on Saturday expressed concern over about 3.5 crore

pending cases in courts across the country Privatization of electricity sector will improve in termsof performance. But subsidies to the farmers forinstant will be affected

E specially the Nuclear power plants in the hands of private players may become a threat to National security In India as of now Tenancy laws is least effective. Butreformation alone will not yield any result


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Conclusion

Assuming that Mckinsey recommendationsare accepted the essential conditions /requirements to implement them arePPP is a better idea than full privatization

E g-Terminal 3, a state-of-the-art and integrated terminal, is the world s eighth largest passenger terminal

Privatization of electric sectors must be doneon preconditions with respect to subsidies


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Small sector players have to be compensatedin some means before eliminating reservationof productsThe judiciary field have to be adequatelystaffed

In F DI promoted retail sectors, only


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References

wikipediaPppindia.inthaindian.comrtiindia.orgpluggd.inlivemint.com

Thanks ..

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India Mckinsey