Happy tidings...

Today seems to be a very nice day. I mean, not everyday does a nation suddenly receive such an infusion of confidence, such a recognition of its innate skills and capabilities, and such appreciation of the reforms that it has undertaken for the benefit of its people. Sure, the process has been long and arduous; sure, the road is still a long way away from the end, but the journey is made more worthwhile if the traveler knows that his efforts to undertake the journey will be, in the end, applauded, or at least credited to his name.

India started out her journey of economics on a slightly shaky foot, but the world was patient with her teething troubles. After all, it isn't always easy to emerge unscathed from nearly two centuries of subjugation. Statistics show that when the British came in India in 1600, India controlled 27% of global trade, but in 1947, she controlled barely 3%. The 1970's were disastrous, what with their focus on unbridled socialism and the license-system choking what little fluidity the economy possessed. For nearly 20 years, India bore the brunt of misplaced idealism, until the early 1990's when the deficit became too large to bear, and drastic steps needed to be taken.

To be fair, the Rajiv Gandhi government did start the process of economic liberalization, but there wasn't the same urgency which existed in 1990. So, in a flash, 20 years of hegemonic State control over every aspect of civic, industrial, and commercial activity were swept aside, and a new regime began its course. Fifteen years later, we see a new India, maybe not that developed, but definitely an improvement. The road is being traversed, slowly, but steadily, and in a definite direction.

And so, the upgradation of India's sovereign rating to investment grade by Standard & Poor is a major display of confidence of India's ability to sustain her pace of growth, and of her resolve to better the lot of her people. Now, Indian companies can grow better and more effectively, and conversely help the overall Indian economy to sustain, if not exceed, its current pattern.

The second piece of good news is the acclamation by the governmental regulator in the UK of Tata Steel's superior bid for the steel major Corus over it's rival, CSN's bid. Of course, this, per se, has nothing to do with showing confidence in India, because the sole considerations for evaluating the bids were monetary, not ideological. But it goes a long way to show that India Inc. has achieved in a big way the ability to challenge global giants, and actually attempt to swallow them up whole.

I don't count Mittal's takeover of Arcelor as an achievement for India Inc., because Mittal Steel was never based in India, as in it was neither headquartered in India nor had any operations here. So, Tata Steel's gambit is a truly Indian maneuver. Sure, we have had plenty of major takeovers by Indian firms, e.g. Tetley by Tata Tea, Daewoo Motors' truck division by Tata Motors, and others. But this is perhaps the first time in history that a company ranked as 56th in its industry actually dared to and succeeded in acquiring control over another company ranked at no. 9. And that the Tatas did it, adds more sparkle to the celebration.

What can I say, but 'Viva L'Inde'!